NC H80

The Town of St. James is authorized to levy a room occupancy tax of up to 5% on gross receipts from rental accommodations subject to state sales tax, in addition to any existing state or local sales taxes.

The Town Council must adopt a resolution creating the St. James Tourism Development Authority as a public authority, with at least one-third of members affiliated with tax-collecting businesses and at least one-half actively involved in promoting travel and tourism.

The Town shall remit net occupancy tax proceeds quarterly to the Tourism Development Authority, which must use at least two-thirds for travel and tourism promotion and the remainder for tourism-related expenditures.

Administrative costs are capped at 3% of the first $500,000 in gross proceeds collected annually and 1% of remaining gross proceeds, deducted before net proceeds are determined.

The Authority must report quarterly and at fiscal year-end to the Town Council on receipts and expenditures, and the act becomes effective upon passage.