NC S902

Durham County room occupancy tax proceeds are redistributed in phases through fiscal year 2027, with varying allocations to Durham County, City of Durham, and Durham Convention and Visitors Bureau based on percentages of the 6% total tax.

Fiscal year 2024-2025: First 3% split 57.5% to county/42.5% to city; next 2% to Convention and Visitors Bureau for tourism promotion; remaining 1% to city ($1.4 million annually) for Performing Arts Theater debt service until March 2034.

Fiscal years 2025-2026 and 2026-2027 implement transitional distributions that gradually shift more proceeds to the Convention and Visitors Bureau while maintaining support for Performing Arts Theater debt service and Museum of Life and Science improvements.

Beginning July 1, 2027 through April 1, 2034, the first 5% of tax proceeds go to the Convention and Visitors Bureau for tourism promotion, with the remaining 1% continuing to support Performing Arts Theater debt service.

Effective July 1, 2034, Sections 2 and 3 establish a simplified structure directing occupancy tax net proceeds monthly to the Durham Convention and Visitors Bureau, which must use at least two-thirds for travel and tourism promotion and remainder for tourism-related expenditures.