NC H238

Creates Clayton District C as a taxing district comprising the portion of the Town of Clayton located within Johnston County, with the Clayton Town Council serving as its governing body.

Authorizes Clayton District C to levy a room occupancy tax of up to 2% on gross receipts from rental accommodations subject to state sales tax, in addition to any existing state or local sales taxes.

Requires quarterly remittance of net tax proceeds to the Johnston County Tourism Authority, which must use at least two-thirds to promote travel and tourism in Clayton District C and the remainder for tourism-related expenditures within the district.

Defines net proceeds as gross proceeds minus up to 3% of the first $500,000 collected annually and 1% of remaining proceeds, with administrative costs capped at those percentages.

Takes effect immediately upon becoming law and amends G.S. 160A-215(g) to include Clayton District C among municipalities subject to occupancy tax provisions.