HomeMy WebLinkAboutAgenda - 08-23-2011 - 8dORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 23, 2011
Action Agenda
Item No. ~-yd
SUBJECT• Performance Agreement with Town of Chapel Hill and Visitors Bureau
DEPARTMENT: Chapel Hill/Orange County PUBLIC HEARING: (Y/N) No
Visitors Bureau
ATTACHMENT(S):
1. 2011-2012 Performance Agreement
Between the Town of Chapel Hill and
the Orange County Visitors Bureau
2. History of Chapel Hill Grant Funding
3. Town of Chapel Hill Occupancy Tax
Information
4. Orange County Occupancy Tax
Information
5. Town of Carrboro Occupancy Tax
Information
6. Town of Hillsborough Occupancy Tax
Information
INFORMATION CONTACT:
Laurie Paolicelli, 919-968-2060
PURPOSE: To review and authorize the Manager to sign the 2011-2012 performance
agreement between Town of Chapel Hill and the Visitors Bureau.
BACKGROUND: Senate Bill 622, Chapter 392, of the 1991 Session laws makes provisions for
both the Orange County Board of Commissioners and Town of Chapel Hill, by resolution, to
levy a room occupancy tax of up to three percent (3%) on any accommodation in the County. It
directs that at least ten percent (10%) of the annual revenues be used to provide funding for
visitor information services and to support cultural events. Orange County has funded the
Visitors Bureau since 1992. The Visitors Bureau, since FY1994-95, has received an annual
grant allocation from the town of Chapel Hill, ranging from $58,625 to its current $150,000. For
fiscal year 2011-2012, the Town of Chapel Hill has allocated $150,000 to the Visitors Bureau as
indicated in the performance agreement attached herein.
FINANCIAL IMPACT: Approval of the agreement will provide $150,000 to the Visitors Bureau
from the Town of Chapel Hill.
RECOMMENDATION(S): The Manager recommends that the Board approve the performance
agreement between the Town of Chapel Hill and the Visitors Bureau and authorize the Manager
to sign the agreement.
A1t'Gtch~l2nf ,.1...
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
CONTRACT FOR
VISITOR SERVICES
This Agreement is made and entered into by and between the Town of Chapel Hill, herein
"Town", and Orange County by and for its Chapel Hill/Orange County Visitors Bureau, 501
West Franklin Street, Suite 104, Chapel Hill, NC 27516, herein "Contractor" for services
hereinafter described for the Town of Chapel Hill. This contract is for a comprehensive visitor
services program targeted toward providing services to potential visitors to Chapel Hill and
Orange County for FY 2011-12.
WITNESSETH
That for and in consideration of the mutual promises and conditions set forth below, the Town
and Contractor agree:
Duties of the Contractor: The Contractor shall operate a comprehensive visitor services
program targeted-toward providing services to potential visitors to Chapel Hill and
Orange County. The Contractor shall use Town funds for general operational support
and to provide visitor services. The Contractor will participate in discussions with the
Town's Economic Developmen~ Committee to define the appropriate roles and
responsibilities of the Contractor in the Town's economic development strategy in
consideration of this payment.
2. Duties of the Town: The Town has appropriated the sum of Gne Hundred Fifty
Thousand Dollars ($150,000) to the Contractor for the fiscal year 2011-2012. The Town
does not obligate itself to provide any other support to the Contractor this fiscal year, nor
in any succeeding year. It is expressly noted that-the $20,000 base increase in
funding this year is a one-time only increase and it is not expected that this increase
will be included in future years' Performance Agreements.
3. Fee Schedule and Maximum Sum: Contract amount not to exceed $150,000. Payments
of $37,500 each will be made on or after the following dates: July 1, 2011; October 1,
2011; January 1, 2012; and April 1, 2012.
4. Billing_and Payment: The Contractor shall submit a bill to the Town for work performed
under the terms of this Agreement. The Contractor shall bill and the Town shall pay the
rates set forth Therein. Payment will. be made by the Town within thirty (30) days of
receipt of an accurate invoice, approved by the contact person or his/her designee.
5. Business License: The Contractor shall have a valid Business License with the Town of
Chapel Hill before beginning work as required by Ordinance (if applicable).
6. Indemnification and Hold Harmless: The Contractor agrees to indemnify and hold
harmless the Town of Chapel Hill and its officers, agents and employees from all loss,
2
Small Service Contract Format Revised 11/2010 Page 1 of 3
3
liability, claims or expense (including reasonable attorneys' fees) arising from bodily
injury,. including death or property damage to any person or persons caused in whole er in
part by -the negligence or willful misconduct of the Contractor except to the extent same
are caused by the negligence or misconduct of the Town.
7. Insurance Provisions: The Town requires evidence of Contractor's current valid
insurance (if applicable) during the duration of the named project and further requires
that the Town be named as an additional insured. The required coverage limits are
$1,000,000 per occurrence for Comprehensive General Liability and Business
Automobile. Workers' Compensation coverage requirements are $100,000 for both
employer's liability and bodily injury by disease for each employee and-$500,000 for the
disease policy Limit.
8. Non-Discrimination: The Contractor shall administer all functions without
discrimination because of -race, creed, sex, national origin, age, economic- status, sexual
orientation, gender identity or gender expression.
9. Federal and State Legal Compliance: The Contractor must be in full compliance with all
federal and state laws, including those on immigration.
10. Amendment: This Agreement may be amended in writing by mutual agreement of the
Town and Contractor.
11. Interpretation: This Agreement shall be construed and- enforced under the laws of North
Carolina. In the event of any dispute between the parties, venue is properly laid in
Orange County, North Carolina for any state court action and in the Middle District of
North Carolina for any federal court action.
12. Severability: The parties intend and agree that if any provision of this contract or any
portion thereof shall be held to be void or otherwise unenforceable, all other portions of
this Contract shall remain in full force and effect.
13. Assignment: This Agreement shall not be assigned without the prior written consent of
the parties.
14. Entire Agreement: This Agreement shall constitute the entire agreement of the parties
and no other warranties, inducements, considerations, promises, or interpretations shall
be implied or impressed upon this Agreement that are not expressly addressed herein.
All prior agreements, understandings and discussions are hereby superseded by this
Agreement.
15. Term: This Agreement, unless amended as provided herein, shall be in effect until June
20, 2012.
Small Service Contract Format Revised 11/2010 Page 2 of 3
4
This Contract is between the Town of Chapel Hill and Orange County by -and for its Chapel
Hill/Orange County Visitors Bureau for a comprehensive visitor services program targeted
toward-providing services to potential visitors to Chapel Hill and Orange County.
IN WITNESS WHEREOF, the .parties hereunto cause this agreement to be executed in their
respective names.
ORANGE COUNTY by and for its CHAPEL HILL/ORANGE COUNTY
VISITOR'S BUREAU
County Manager
Attest:
Clerk
TOWN OF CHAPEL HILL
ASSISTANT/DEPUTY/TOWl`~ MANAGER
ATTEST BY TOWN CLERK:
TOWN CLERK
TOWN SEAL
Town Clerk attests date this the day of , 20
Approved as to Form and Authorization
TOWN ATTORNEY
This instrument has been pre-audited in the manner required by the Local Government Budget
and Fiscal Control Act.
FINANCE OFFICER
PARKS AND RECREATION DIRECTOR
Small Service Contract Format Revised 11/2010 Page 3 of 3
~-~achrn~n~ a
To: Frank Clifton, County Manager
Fr: Laurie Paolicelli, Director, Visitors Bureau
Cc: Board of County Commissioners
Date: July 6, 2011
Re: Visitors Bureau Performance Agreement with the Town. ofChapel Hill
A history to the funding relationship with Chapel Hill and Orange County:
The Orange County Occupancy Tax was passed in the 1991 session's law and specified
that Orange County could levy a room occupancy tax of up to 3%.
httl~•%/~~~~~~ ncga 4tate nc us/Ses5io~3s/1991 %Bills/Senatei7:-1"1,~1:11/S622v3.htm.1
The bill gives both Chapel Hill Town Council and the Orange County Board of
Commissioners prerogative to decide on the allocation of the revenues collected from this
tax annually during its budgeting process. At least ten percent (10%) of the annual
revenues shall be used to provide funding for visitor information services and to support
cultural events.
The Visitors Bureau was created in 1992 by Orange County-- using the initial 1
occupancy tax-( raised to 2% in 1995 and 3% ir. 2008) and since in its inception, the
Visitors Bureau staff and programs have- been made possible by the Orange County
Board of County Commissioners.
In 1994/95, the town of Chapel_Hill began giving_the visitor's bureau a grant, which first
equaled $58,625.00 and then took the following course:
- In 1995/96; 15% of the occupancy tax revenues or $71,778.
- In 1996/97; 15% ofthe occupancy tax revenues or $80,810.
- In 1997/98; 15% or $83,779.
- In 1998/99; 15% or $83,751.
- 1999/2000; 15% or $92,860.
- 2000/2001; 15% or $94,545.
- 2001/2002; 15% or $88,498.
- 2002/2003; 15% or $84,067.
- 2003/2004; 15% or $86,649
- 2004/OS REVERTS TO 10% GRANT OR $67,000 (Coincides with Pavao's
departure on council)
- 2005/06 STAYS AT 10% GRANT OR $69,000
- 2006/07; inches up to $85,000 at VB request.
- 2007/08; inches up to $100,000 at VB request.
- 2008/09 inches up to $130,000 with $20,000 additional grant.
- 2009/10 inches up to $150,000
- 2010/11 remains at $150,000
- 2011/12 remains at $150,000
5
~-Ft-a~h mQ~n ~ 3 s
GENERAL ASSEMBLY OF NORTH CAROLINA
1987 SESSION
CHAPTER 460
HOUSE BILL 917
AN ACT MAKING SUNDRY AMENDMENTS CONCERNING LOCAL
GOVEP:Nl~NTS-IN ORANGE AND CHATHAM COUNTIES.
The -General Assembly of North Carolina enacts:
TITLE I. CHAPEL HILL fl.CCUPANCY TAK.
Section-1. Occupancy- Tax. (a) Authorization and scope. The-Chapel Hill
Town Cooneil may, by-ordinance, levy. a room- occupancy tax of no more than-three
percent (3%) on the gross receipts derived from the rental of any room, lodging,- o~
similar accommodation subject to sales tax under G.S. 105--164:4(3}.
Tliis tax does not apply to accommodations furnished by nonprofit charitable,
educational, benevolent, or religious organisations when furnished in furtherance of
their nonprofit purpose. This tax is in addition t-o any State-or local sales tax_
(b) Collection. Every operator of- a business subject to the tax levied
under this section shall, on and after theeffective date-of the levy of the tax, collect the
tax. This tax shall be collected as part of the charge for furnishing a taxable
accommodation. T-he tax shall be stated and charged= separately on the sales records,
and shal-1 be paid by the purchaser to the operator of the business-as trustee for- and on
account of the Town of Chapel Hill. The tax shall be added to the sales price and shall
be passed on to the- purchaser instead of being borne by the operator of the business.
The Town shall design, print,. and -furnish to all appropriate businesses- and persons in
the Town the necessary forms for_. filing returns and instructions to ensure the full
collection of the tax.
An operator of a business who collects the occupancy tax levied under this
section may deduct from the amount remitted by hire to the Town a discount of one
percent (1%) of the amount collected as reimbursement for the expenses incurred in
collecting the tax.
(c) Administration. The Town shall administer a tax levied under this
section. A tax levied under this section is due and payable to the -Town revenue
collector in monthly installments on or before the 15th day of the month following the
month in which the tax accrues. Every person, firm, corporation, or association liable
for the tax shall, on or before the 15th day of each month, prepare and render a return on
a form prescribed by the Town. The return shall state the total gross receipts derived in .
the preceding month from rentals and sales upon which the tax is levied.
(d) Penalties. A person, firm, corporation, or association who fails or
refuses to file the return required by this section shall pay a penalty of ten dollars
($10.00) for each day's omission. In case of failure or refusal to file the return or pay
7
-the tax for aper-iod of 30 days after the time required for filing the return or for paying
the tax, there shall bye an additional tax, as a penalty; of five percent (5%) of the tax due
in addition to any other penalty, with an additional tax of f ve percent (5%) for each
additional month or fractionthereof until the tax is paid.._
Any person who willf-ally attempts in any manner to evade a tax imposed
under this section or who willfully fails to pay the tax or make and file a return shall, in
addition to all other penalties provided by law,. be guilty of a misdemeanor and shall be
punishable by a fine not to exceed one thousand dollars ($1,000) and_iinprisonment not
to exceed 30 days.
(e) Use and Distribution of Tax Revenue. The Town Council of the Town
of Chapel HiII shall decide on the allocation of the revenue-s collected Trom this- tax
annually during its budgeting process with particular consideration given to providing
funding for visitor information services and support for cultural-events, and not less than
ten percent.(10%). of the annual revenues shall be used for those purposes.
The Town may-contract with nonprof t organizations to undertake or marry
out the activities and programs f-or which the revenue maybe expended. All contracts
entered into with nonprofit organizations shall require an annual financial audit of any
funds expended and a performance audit of contractual obligations.
(f}- Repeal. A tax levied under this- section may be repealed by ordinance
adopted by the Chapel Hill- Town Council. Repeal of a tax levied under this section
shall become effective on the first day of a month and m-ay not become effective until
the end of the fissaI year in which the repeal ordinance- wars adopted. Repeal of a tax
levied under this section does not affect a liability for a tax that attached before the
effective date- of the repeal, nor does it-affect a right to a refund of a tax ±.hat accrued
before the -ef=.fective date of the repeal.
Sec. ~. Any tax enacted pursuant to this title shall-not apply to the Durham
County portion of the Town of Chapel Hill.
TITLE II. CHAPEL HILL SMOKE DETECTORS.
Sec. 3. The Charter of the Town of Chapel Hill being. Chapter x'13,_ Session
Laws of 1975, is amended by adding a new section to read:
"Section 6.3. Smoke Detectors. Notwithstanding any provision of the North
Carolina State Building Code or arty general or local law to the. contrary, the Town of
Chapel Hill may provide, by ordinance, that the owners of all rental residential dwelling
units whose units are not required to have smoke detectors under the Mate Building
Code shall install smoke detectors in such units within 90 days after the effective date of
such ordinance."
TITLE III. CHATHAM IlVIPACT FEES.
Sec. 4. Impact Fees Authorized. (a) The Board of Commissioners of a
county may provide by ordinance for a system of impact fees to be paid by developers
to help defray the costs to the county of constructing certain capital improvements, the
need for which is created in substantial part by the new development that takes place
within the county.
(b) For purposes of this title, the term "capital improvements" includes
capital improvements to schools, roads, public recreation facilities, sidewalks,
Page 2 S.L. 1987-460 House Bill 917
8
bikeways, rescue facilities, surface water drainage systems, water or sewer systems, and
fire stations.
(c} An ordinance adopted pursuant to authority contained in this act may
be made applicable to all development that occurs within the county.
Sec. 5. Amount of Fees. In establishing the amount of .any impact fee, the
county shall endeavor to-approach the objective of having every development contribute
to a capital improvements fund an amount o~ revenue that bears a- reasonable
relationship to that development's fair share of the costs of the capital improvements
that are needed in part because of that development. In fulfilling this objective, the
Board of Commissioners sha71, among other steps-and actions:
(l;) Estimate the total cost of improvements- by category (e.g~ schools-,
roads, public recreation facilities, -etc.) that will bE needed to provide in a reasonable
manner for the public health, safety_ and welfare of persons residing within the county
during a reasonable --planning period not to- -exceed 20 years.. The Board of
Commissioners may divide the-county into two or more districts and estimate the costs
of needed improvements within each- district. These estimates shall be periodically
reviewed and updated, and the planning period used may be changed from time to time.
(2) Establish a percentage- of the total. costs of each category of
improvement drat, in keeping with- the objective set forth above, should fairly be borne
by those paying the impact fee.
(3) Establish a formula that fairy- and objectively apportions the total
costs that- are to be- borne by those paying impact fees aYnong various types of
developments By way of illustration, but without limitation:
a. In the case of road improvements, the impact fee may be related to._the
number of trips per day -generated. by different types of-uses according
to recognized estimates
b. In the case of improvements to schools the impact fee may be related
to the size of the development, i.e., number of houses, and the
anticipated number of students expected from said development
according to recognized estimates, and the impact thereof on the need
for additional school facilities in-the county.
Sec. 6. Capital Improvements Reserve Funds; Expenditures. (a) Impact
fees received by the county shall be deposited in a Capital Improvements Reserve Fund.
Such funds may be expended only on the type of capital improvements for which such
impact fees were established, and then only in accordance with the provisions of
subsection (b) of this section.
(b) In order to ensure that impact fees paid by a particular development
are expended on capital improvements that benefit that development, the county may
establish f-or each category of capital improvement for which it collects an impact fee at
least two geographical districts or zones, and impact fees generated by developments
within those districts or zones must be spent on improvements that are located within or
that benefit property located within those districts or zones.
Sec. 7. Credits for Improvements. An ordinance adopted under this act
shall make provision for credits against required fees when a developer installs
House Bi11917 S.L. 1987-460 Page 3
9
improvements of a type- that generally would-be paid for by the county out of a capital
reserve account funded by impact fees. The-ordinance may spell out the circumstances
under which a developer will be allowed to install such irprovements and receive such
credits.
Sec. S. Appeals Procedure. An ordinance adopted under this act may
provide that any person aggrieved by a decision regarding an impact fee may appeal to
the County Board of Adjustment. If the ordinance establishes an appeal procedure, it
shall -spell out the time within which the appeal must be taken to the Board of
Adjustment, the possible grounds for an appeal and-the board's authority in the matter,
whether the fee must be paid prior to resolution of the appeal, and- other procedural or
substantive matters related to appeals. Any decision by the Board of-Adjustment shall
be subject to review by the superior court within the county by proceedings in the nature
of-certior-ar-i in the same manner as is provided in G.S. 153A-345(e)._
Sec 9. Payment-off Impact- Fees. An ord-finance adopted-under this act shall
spell out=when in-tlie process of development approval and construction impact fees
shall be paid and by whom. By way of illustration, and without 1_imitation, the
ordinance may provide that an applicant for a building permit shall submit the impact
fee along with the permit application and that building permits- shall- not be issued until
the impact fee has been paid.
Sec. i0. Refunds If this- title or any ordinance adopted hereunder- is
declared to be unconstitutional or otherwise invalid by any court of competent
jurisdiction, then any impact fees collected ther_eund~r shall be refunded to the person
paying them tngetlier with interest at the same rate pal-d.by the Secretary of Revenue on
refunds for tax over-payments.
Sec. 11. .imitation on Actions. (aj Any action contesting the validity of an
ordinance adopted pursuant to this title must be commenced not later than nine months
after the effective date of such ordinance.
(b) Any action seeking to recover an impact fee must be commenced not
later than nine months after the impact fee is paid.
Sec. 12. All laws and clauses of laws in conflict with this title are hereby
repealed.
Sec. 12.1. This title applies to Chatham County only.
TITLE IV. PITTSBORO IMPACT FEES.
Sec. 13. The Charter of the Town of Pittsboro, being Chapter 348, Session
Laws of 1973, as-amended is amended by adding a new Article to read:
"Article XIV. Impact Fees.
"Sec. 14.1. Impact Fees Authorized.-{a) The Town Board of Commissioners may
provide by ordinance for a system of impact fees to be paid by developers to help defray
the costs to the Town of constructing certain capital improvements, the need for which
is created insubstantial part by the new development that takes place within the Town
and its extraterritorial. planning area.
(b) For purposes of this Article, the term capital improvements. includes capital
improvements to public streets, bridges, sidewalks, greenways, water and sewer,
Page 4 S.L. 1987-460 House Bill 917
10
bikeways, -on and off street surface water drainage ditches, pipes, culverts, other
drainage facilities, public schools, and public recr-cation facilities.
(c) An ordinance- adopted under this Article may be made applicable to all
development that occurs within the town and its extraterritorial planning area, as
established by local act or pur-suant to the procedures set forth in G.S. 1b0A-360.
(d) The Town may, with -the approval of- the Chatham County Board of
Commissioners, construct capital improvements outside the- Town limits but within-the
Town's extraterritorial planning area.
"Sec. I4.2. ~imount of Fees.~a) In-establishing the amount of any impact fee,-the
Town shall endeavor to approach the objective of having every- development contribute
to a capital improvements fund an amount of revenue that bears -a -reasonable
relationship to that development's fair spar-e of the costs of the capital improvements
that are needed in part because of that development. In fulfilling this- objective, the
Town-Board_of Commissioners_shall,_among other- steps and actions:
(1} Estirn-ate the total cost- of improvements by category (e.g., streets,
sidewalks, drainage ways, ete.)_ that will be needed to provide in a
reasonable manner for the public health, safety and welfare of persons
residing within the Town and its -extraterritorial planning area during a
reasonable .planning period not_ta exceed 20 years. The- Council may
divide the T-own~nd its extraterritarial area into two or more districts
and estimate the costs of needed improvements- within each district.
These estimates shall- be periodically reviewed -and -updated, and the
plan~-~ing period-used maybe changed fr-o7x~ time to time.
(2) Establish a percentage of the total costs of each category o£
improvement that, in keeping with the- objective set forth -above,
should fairly be borne by those paying the impact fee.
(3) Establish a formula that fairly and objectively apportio:~s the total
costs that are to be borne by those paying impact fees among various
types of developments. By way of.illustration without limitation:
a. In the case of street improvements, the impact fee may be
related to the number of trips per day generated by different
types of uses according to recognized estimates;
b. In the case of drainage improvements, the impact fee may be
related to the size of a development, the amount of impervious
surface the development has, or other factors that bear upon the
degree to which a development contributes to the need for
drainage improvements made at public expense.
"-Sec. 14.3. Capital Improvements Reserve Funds; Expenditures. (a) Impact
fees- received by the Town shall be deposited in a capital improvements reserve fund or
funds established under Chapter 159 of the General Statutes, Article 3, Part 2. Such
funds may be expended only on the type of capital improvements for which such impact
fees were established, and then only in accordance with the provisions of subsection (b)
of this section.
House Bill 917 S.L. 1987-460 Page 5
11
(b) In order to ensure that impact fees paid by a particular development are
expended on capital i~nprovem-ent that benefit that development, the Town may
establish for each category of capital improvement for which it collects an impact fee at
least two geographical districts or zones, and impact fees generated by developments
within those districts -or zones must be spent on improvements that are located within or
-that benefit property located within those districts or zories.
"Sec. 14.4. Credits for Improvements. An ordinance adopted under this Article
shall make provision for credits against required fames when a developer installs
improvements of a type that generally-would be paid for by the Town out of a capital
reserve account funded by impact fees. The ordinance may spell out the circumstances
under which a developer wil-1 be allowed to install such improvements and receive such
credits.
"Sec. 14.5. Appeals Procedure. An ordinance adopted under this Article may
provide that. any person aggrieved by- a decision -regarding an impact fee may appeal to
the PitGsboro Board of Adjustment ~IfthE-ordinance establishes an appeal procedure, it
shall spell out the time within which the appeal must be taken to the Board of
Adjustment, the possiblegrounds- for an appeal and the board's authority in tho matter,
whether the fee must lie paid prior to resolution of the appeal, and other procedural or
substantive matters related to appeals. Any decision=bythe Board of Adjustment shall
be subject to review by the superior court by proceedings in the nature of certiorari in
the same manner as is provided in G.S. 160A-388(e).
"Sec. 14.6. Payment of Impact Fees. An ordinance adopted under this Article
shall spel-1 out when in the process of development approval and construction impact
fees shall be paid and by whom. -By way of illustration without limitation, the
ordinance may provide that an applicant f-or a -building permit -shall submit the imparct
fee along with the permit application and that building permits shall not be issued until
the impact fee has been paid:
"Sec. 14.7. Refunds. If this Article~or any ordinance adopted thereunder is declared
to be tiu~constitutional or otherwise invalid, then any impact fees collected shall be
refunded thereunder to the person paying them together with interest at the same rate
paid by the Secretary of Revenue on refunds for tax overpayments.
"Sec. 14.8. Limitations on Actions. (a) Any action contesting the validity of an
ordinance adopted under this Article must be commenced not later than nine months
after the effective date of such ordinance.
(b) Any action seeking to recover -an impact fee must be commenced not later
than nine months after the impact fee is paid."
TITLE V. CHAPEL HII.L HOUSING.
Sec. 14. Findings and declarations. It is hereby found and declared that there
is a serious shortage of decent, safe and sanitary housing available at low prices or
rentals to persons and families of low and moderate income, and that private enterprise
without assistance has been unable to meet that need in the Town of Chapel Hill. These
conditions contribute to urban blight and retaxd sound development and redevelopment,
thereby necessitating the following provisions to alleviate such conditions in the public
interest.
Page 6 S.L. 1987-460 House Bill 917
12
S.ec. 15. In addition _to= the other authority grant-ed by la~v, the Town of
Chapel Hill may engage in and appropriate and expend any public funds for housing
programs and activities for the benefit of low and moderate income persons, and to
engage in the following activities for the benefit of low -and moderate income persons:
programs of assistance and financing-of rehabilitation efforts, including-direct repair and
the making of grants or loans; the purchase, lease or disposition of property for housing
sites; and the construction, reconstruction, improvement or alteration of housing or
housing projects. The Town of Chapel Hill may enter into contracts or agreements with
any person, -association, partnership, corpor-ation or another governmental- agency to
undertake, carry out or otherwise exercise -the authority granted by this section. This
authority shall be-considered a part of-the Town's Community Development enabling
authority.
Sec. 16. This Title shall apply to the Town of Chapel Hill only.
TITLE VI. QRANGE COITNTY~MP_ACTFEES.__
Sec. 1-7. ~~C.S. LS-3A-331 is-amEnded-by identifying the existing provisions as
subsection (a) and by adding new subsections to read:
"(b) Impact Fees Authorized.
(1) Orange County may provide by ordinance for a system of -impact fees
to be paid by developers to help -defray the costs to the- County of
constructing .certain capital improvements, the need for which is
created in substantial part by the new development that takes place
within the County.
(2) For purposes of this subsection, the term capital- improvements
includes the acquisition of land for open space ~.nd greenways; capital
improvements to public streets, schools, bridges, sidewalks, bikeways,
on and off street surface water-drainage ditches, pipes, culverts, other
drainage facilities, water and sewer facilities and public recreation
facilities.
(3} An ordinance adopted under this subsection may be made applicable to
all development that occurs within the County.
(c) Amount of Fees. In establishing the amount of any impact fee, the County
shall-endeavor to approach the objective of having every development contribute to a
capital improvements fund an amount of revenue that bears a reasonable relationship to
that development's fair share of the costs of the capital improvements that are needed in
part because of that development. In fulfilling this- objective, the County shall, among
other steps and actions:
(1) Estimate the total cast of improvements by category (e.g., streets,
sidewalks, drainage ways, etc.) that will be needed to provide in a
reasonable manner for the public health, safety and welfare of persons
residing within the County during a reasonable planning period not to
exceed 20 years. 'The Board of County Commissioners may divide the
County into two or more districts and estimate the costs of needed
improvements within each district. These estimates shall be
House Bill 917 S.L. 1987-460 Page 7
13
periodically reviewe-d and updated and the planning period used may
be changed from time to time.
(2) Establish a percentage of "the total costs of each category of
improvement that, in keeping with the objective set forth -above,
should fairly-be borne by those paying the impact fee.
(3) Establish a formula that fairly and objectively apportions the total
costs that are to be borne by those paying impact fees among various
types o~ developments. By way of illustration without limitation:
a. In the case of street improvements, -the impact fee may be
related to the number of trips per day generated by different
types of uses according to recognized estimates;
b. In the case of drainage improvements, the impact fee- may be
related to-the size of a development, the amount of impervious-
surface the developmen*_- has, or other_factors-that_bear_ upon the
degree -to-which adevelopment---contributes to the need for
drainage7mprovements made at public expense.
(d} Capital Improvements-Reserve p'unds: Expenditures.
(1) Impact fees received by the County shall be deposited in a capital
-.improvements reserve hind or funds established under Chapter I59 of
the General_Statutes, Article 3, Part 2. Such funds may be expended-
only on the type of capital improvements for which such impact fees
were established, and thin only in accordance with the provision of
-subsection (2) of-this section.
(2) In order to ensure that impact-fees paid by a particular development
are expended on capital improvements that benefit that development,
the County may establish for each category of capital improvement for
which it collects an impact fee at least two geographical districts or
zones, and impact fees generated by -developments within those
districts or zones must be spent on improvements that are located
within or that benefit property located within those districts or zones.
(e) Credits for Improvements. An impact fee ordinance shall make provision for
credits against required fees when a developer installs improvements of a type that
generally would be paid for by the County out of a capital reserve account funded by
impact fees. The ordinance may spell out the circumstances under which a developer
will be allowed to install such improvements and receive such credits.
(f) Appeals Procedure. An ordinance authorizing impact fees as provided herein
may provide that any person aggrieved by a decision regarding an impact fee may
appeal to the Orange County Board of Adjustment. If the ordinance establishes an
appeals procedure, it shall spell out the time within which the appeal must be taken to
the board of adjustment, the possible grounds for an appeal and the board's authority in
the matter, whether the fee must be paid prior to resolution of the appeal, and other
procedural or substantive matters related to appeals. Any decision by the board of
adjustment shall be subject to review by the superior court by proceedings in the nature
of certiorari in the same manner as is provided in G.S. 153A-345.
Page 8 S.L. 1987-460 House Bill 917
14
(g) Payment of Impact Fees. An ordinance authorizing -unpact fees as herein
provided shall spell out when in the process of development approval and construction
impact fees shall be paid and by whom. By way of illustration without limitation, the
ordinance may provide that an appl-icant for a building permit shall submit the impact
fee- along with the permit application and that building permits shall not be issued until
the impact f-ee has been paid.
(h). Refunds. If this section or any ordinance adopted thereunder is declared to be
unconstitutional or otherwise invalid, then any impact fees collected shall be refunded
to the person paying-them together with interest at the rate established under G:S. 105-
241.1,. being the same rate paid by the Secretary of Revenue on refunds for tax
overpayments.
(i) Limitations on Actions.
(1) Any action -contesting the validity of an oxciinance_ adopted as herein
provided must be commenced -not- later -than nine- months after the
:effective date=of such ordinance. -
(2) Any action seeking to recover an impact ~e must be commenced not
-later than nine months .after the impact fee_is paid."
Sec. 17.1. Section 17 of this act shall apply only to Orange County, and
applies only within the planning. jurisdiction of Orange County.
Sec. 18. G.S. 153A-340 is amended by identifying the existing provi-lions as
subsection (a) and by adding new subsections to read:
"(b) Impact Fees Authorized.
(1) Orange County may -provide by ordinance for a system of impact fees
to_ be paid by developer-s to help- defray the costs to the County_ of
constructing certain capital improvements, the need for which is
created -in substantial part by the new development that takes place
within the County.
(2) For purposes of this subsection, the term capital improvements
inoludes the acquisition of land for open space and greenways, capital
improvements to public streets, schools, bridges, sidewalks, bikeways,
on and off street surface water drainage ditches, pipes, culverts, other
drainage facilities, water and sewer facilities and public recreation
facilities.
(3) An ordinance adopted under this subsection may be made applicable to
all development that occurs within the- County.
(c) Amount of Fees. In establ-fishing the amount of any impact fee, the County
shall endeavor to approach the objective of having every development contribute to a
capital improvements fund an a.mount of revenue that bears a reasonable relationship to
that development's fair share of the costs -of the capital improvements that are needed in
part because of that development. In fulfilling this objective, the County shall, among
other steps and actions:
(1) Estimate the total cost of improvements by category (e.g., streets,
sidewalks, drainage ways, etc.) that will be needed to provide in a
reasonable manner for the public health, safety and welfare of persons
House Bi11917 S.L. 1987-460 Page 9
15
residing within-the County during a reasonable playing period not to
exceed 2D years. The Board of County Commissioners may divide the
County into two or more districts and estimate the costs of needed
improvements within each district. These estimates shall be_
periodically reviewed -and updated and the planning period used may
be changed from time to time.
(2) Establish a percentage of the total costs of each category of
improvement that, in keeping with the objective set forth above;
should fairly be borne by those paying the impact fee.
(3) Establish a formula that fairly and objectively apportions the total
costs that are to be borne by those paying impact fees among various
types of developments. By way of illustration wvithout limitation:
a. In the case of street impravernents, the impact fee may be
related. to the. number of trips .per- day generated-by--different
-types of uses-a:ccording~to recognized estimates;
b. In the case of drainage improvements, -the impact fee may be
related to the size -of a development, the amount of impervious
surface the development has, or other factors that bear upon the
degree to which a development contributes to the need for
drainage improvements made at public expenses
(d) Capital Improvements. Reserve Funds:- Expenditures.
(1) Impact fees received- by the Ce~anty shall be deposited in- a capital
improvements- reserve fund or funds established under Chapter 159- of
the General Statutes; Artic1~3, Dart 2. Such funds may be expended
only on the type of capital improvements for which such impact fees
wer-e established, and then only in accordance with the provision of
subsection (2) of this section.
(2) In order to ensure that impact fees paid by a particular development
are expended on capital improvements that benefit that development,
the County may establish for each category of capital improvement for
which it collects an impact fee at least two geographical districts or
zones, and impact fees generated by developments within those
districts or zones must be spent on improvements that are located
within or that benefit property located within those districts or-zones.
(e) Credits for Improvements. An impact fee ordinance shall make provision for
credits against required fees when a developer installs improvements of a type that
generally would be paid for by the County out of a capital reserve account funded by
impact fees. The ordinance may -spell out the circumstances under which a developer
will be allowed to install such improvements and receive such credits.
(f) Appeals Procedure. An ordinance authorizing impact fees as provided herein
may provide that any person aggrieved by a decision regarding an impact fee may
appeal to the Orange County Board of Adjustment. If the ordinance establishes an
appeals procedure, it shall spell out the time within which the appeal must be taken to
the board of adjustment, the possible grounds for an appeal and the board's authority in
Page 10 S.L. 1987-460 House Bi11917
16
the matter, whether the fee must be paid prior to resolution of the appeal, -and other
procedural or substantive matters related to appeals. Any decision by the board of
adjustment shall be subject to review by the superior tour-trtiy proceedings in the nature
of certiorari in the same manner as is provided=in G.S. 153A-345.
(g) Payment of Impact Fees. An ordinance authorizing_ impact fees as herein
provided shall spell-out when in the process of development approval and cflnstr~ction
impact fees shall be paid and by whom. By way of illustratifln withoutlimitation, the
ordinance may provide that an applicant for a building_ permit shall submit the impact
fee along with the permit application and that building permits -shall not be issued until
the impact fee has been paid
(h) Refunds. If this section or any ordinance adopted thereunder is declared to be
unconstitutional or otherwise invalid, then any impact fees collected shall be refunded
to the person paying them together with interest at the rate established under G.S. 105-
241.1; being the same rate paid by the Secretary of Revenue orLrefunds.__for_ tax
-overpayments.
(i) Limitations on Actions:
(1) Any action contesting the validity of an ordinance adopted as- herein
provided must be commenced not later than nine months after the
eft-ective date of such ordinances
(2) Any action seeking. to recover_ an impact fee must be commenced not
later than nine months after the impact fee is paid."
Sec. 18.1. Section 18 of this act shall apply only to Orange County, and
applies only within the planning jurisdiction of Orange County.
TITLE VII. ORANGE COLiI~iTY DISCL OSURE.
Sec. I9. Every member of the Boarel of Commissi-oners of Orange County
shall disclose any .legal, equitable, beneficial or contractual interest he/she or his/her
spouse may have in any real property in Orange C ounty. The real property which must
be disclosed includes all real property which .any Board member or his/her spouse holds
title to, individually or jointly, any real property held in trust as well-as any pecuniary
interest he/she may have in any business, firm, or corporation of whatever nature, which
holds title to or has any ownership interest in any real property within Orange County.
Such disclosure shall contain the general location of the real property, but need not
include its value.
Sec. 2a. Every member of the Board of Commissioners of Orange County
shall disclose any legal, equitable, beneficial or contractual interest he/she may have in
or with any business, firm, or corporation, of whatever nature, which is doing business
with Orange County pursuant to contracts which have been awarded by Orange County.
Sec. 21. Every member of the Board of County Commissioners of Orange
County shall disclose any legal, equitable, beneficial or contractual interest he/she may
have in any business, firm, or corporation, of whatever nature, which is attempting to
secure the award of a bid from Orange. County or the approval of any Board or Agency
of Orange County.
House Bi11917 S.L. 1987-460 Page lI
t~
Sec. 22. Tlie disclosures required in Sections 19, 20 and 21 shall be in
writing arld fi1~d with the Clerk of Superior Court of Orange County and with the Clerk
to the Board of Commissioners of Orange County.
S-ec. 23: `fhe written disclosures required in Sections 19, 20 -and 21 shall be
made within the following time periods which are applicable:
(1) the later of 30 days after the effective date of this title or 30 days after
the Board member has assumed office;
(21_ the earlier of 30- days of the acquisition of any legal, equitable,
beneficial or contractual interest in the property or business, firm, or corporation
required to be disclosed in Sections 19, -20 and 21 or prior to `she .award by Orange
County of a contract with or a permit or other approval to a business, firm, or
corporati-on required to be disclosed in Sections 20 and 21.
Sec. 24. Subject to the limitations contained in this section, every Board
member-who has an interest required to be di.~closed by- this-- title _sha11__dis~ualify_
himself/herseif from voting on any matter--involving -any- such interest which comes for
official action before the Board of -County Commissioners of Orange County. The
following interests do -not re-quire disqualification:
(-1) -interest in real property which must be disclosed in Section 1 provided
the issue before the Board of Commissioners is one of policy that affects the real
property disclosed no differently than all other property similar-ly situated.
(2) an interest in business,. firm, or corloration which is negligible from
the point of-view of the operation of the business, firm, or-corporation.
Sec. 25. Any member-who violaxes any-provision of this title shall be gull-ty
of a misdemeanor and may be fined not more than=one thousand dollars ($1;000) -or
imprisoned not more than one year,- or both. Any member who is convicted of a wilful
second violation of -any provision of this act shall forfeit his/her elected or appointed
office, and such office shall be considered vacant as of the date of the final judgment of
conviction_
Sec. 26. This Title shall apply only to Orange County.
TITLE VIII. PITTSBORO PARKIl~G.
Sec. 27. (a) G.S. 20-162.1 is amended by deleting "one dollar ($1.00)", and
substituting "-not more than five dollars ($5.{?0)".
(b) This section applies to the Town of Pittsboro only.
Sec. 28. (a) Whenever evidence shall be presented in any court of the fact
that any automobile, truck, or other vehicle was found upon any street, alley or other
public place contrary to and in violation of the provisions of any municipal ordinance
limiting the time during which any such vehicle may be parked or prohibiting or
other-wise regulating the parking of any such vehicle, it shall be prima facie evidence in
any court in the State of North Carolina that such vehicle was parked and left upon such
street, alley or public way or place by the person, firm or corporation in whose name
such vehicle is then registered and licensed according to the records of the department
or agency of the State of North Carolina, by whatever name designated, which is
empowered to register such vehicles and to issue licenses for their operation upon the
streets and highways of this State; provided, that no evidence tendered or presented
Page 12 S.L. 1987-460 House Bi11917
18
under the authorization contained in this section shall be admissible or competent in an-X
respect in any corm or tribunal, exc-apt in cases concerned solely with violation of
ordinances 1-uniting, prohibiting or otherwise regulating the parking-of automobiles or
other vehicles upon public streets, highways, or other public places.
(b) The prima facie rule of evidence established by subsection (a) sha-11
not apply to the registered owner of a leased or rented vehicle parked in violation of law
when said _owner can furnish sworn evidence that the vehicle was, at the time of the
parking violation, leased or rented, to .another- person. In such instances, the owner of
the vehicl-e shall, within a reasonable time _after- notification of the -parking violation,
furnish to the courts the name and address of the person or company who leased or
rented the vehicle.
(c) This- section only applies as to civil penalties under G.S. 1-60A-175(c),
and only applies where -the civil penalty under the ordinance does not exceed five
do-11ars ($5:00).
(d) This section applies to the Town of Pittsboro only.
TITLE IX. CHATHA1t~I ZONING NOTICES.
Sec. 29. (a)-Chapter 595, Session Laws of 1985, is repealed.
{b) Eff-active January 1, 1988, Chapter 595, Session Laws of 1985, is
reenacted.
(c)_ This section applies only to_ Chatham -County- and incorporated
municipaluties_located therein.
TITL-E X PITTSBORO EXTRATERRITORIAL ASSESSMENTS.
Sec. 30. (a) A town has the same authority witlrin its extraterritorial planning
jurisdiction as established by Article 19 of Chapter 160A of the- General Statutes or
established by-l-ocal act to make special assessrents under G.S. 160A-216(3) or (4),-but
such assessments must be held in -abeyance without interest until improvements on the
assessed property are actually connected to the water or sewer system.
(b)- This section applies only to the Town of Pittsboro.
TITLE XI. PITTSBORO ANNEXATION
Sec. 30.1. Article II of the Charter of the Town of Pittsboro, Chapter 348,
Session Laws of 1973, is amended by adding a new section to read:
"Sec. 2.3. Inco Statellite Corporate Boundaries. The area Wore particularly
described hereinafter shall be annexed to and a part of the town of Pittsboro as follows:
All that certain tract or parcel of land located in Center Township,. Chatham County,
North Carolina, being more particularly described as follows:
'BEGINNING at an iron pin in the southeast corner of property retained by K. W.
Cooper and W. D. Harris, said iron pin also being the western margin of property of M.
H. White, which BEGINNING point is located the following courses and distances from
North Carolina Geological Survey monument "Gunter" (which monument has N. C.
coordinates North 716,720.247, East 1,954,239.754); South 10 degrees 13 minutes 33
seconds West 2,465.11 feet to an iron pin and thence South 10 degrees 09 minutes 36
seconds East 298.98 feet to an iron pin to said BEGINNING point; thence from said
BEGINNING point along M. H. White's western boundary South 10 degrees 09 minutes
36 seconds East 1,252.02 feet to an iron pin.; thence continuing along W. H. White's
House Bi11917 S.L. 1987-460 Page 13
19
western boundary South 13 degrees 40 minutes 54 seconds East 744.93 feet to a point in
the centerline of Robers~on's -Creek (also kalown as Robertson's Creek), said point being
the intersection of Roberson's Creek and the mouth of *~he branch hence along the
centerline of Roberson's Creek the following courses and distances: South 60-degrees
25 minutes 50 seconds West 258.54 feet to a point; thence-South 83 degrees 14 minutes
36 seconds- West 535.80 feet to point; thence North 87 degrees 52 seconds 09 minutes
West 461.96 feet to a point; thence South 58 degrees- 31 minutes 12 seconds West
198-.47 feet to a point;_ther~ce North 59 degrees 32 minutes 3.2 seconds West 455.56 feet
to a point; thence North 68 degrees 46 minutes 53 seconds West 4 i 6.48 feet to a point;
thence South 77 degrees 08 minutes 43 seconds Nest 103.57 feet to a point; thence
South 77 degrees 0$ minutes 43 seconds West 103.57 feet to- a point; thence North 31
degrees 17 minutes 31 seconds West 192.17 feet to a point; thence North 14 degrees 1D
minutes 07 seconds West 255 ~ 1 feet to a point; thence North 09 degrees 36 minutes 09
seconds. West 369.87 feet to a point;_thence North. 06-degrees 57-minutes_19 seconds
West 35'T44-feet to-a point; thence North 26 degrees-~53-minutes-46-seconds-East-160.00
feet to a point; thence North 51 degrees 43 minutes 19 seconds East 209.82. feet to -a
point; thence North 35 degrees 49 minutes 07 seconds West 138.72 feet to a point;
thence North 31 degrees 11 minutes 13 seconds West 147.24 feet to a point; thence
leaving the centerline of Robertson's Creek North 41 degrees 31 minutes 30 seconds
East 20.13 feet to an iron pin; thence continuing -North 41 degrees 31 minutes 30
seconds East 289..-87 feet to an iron pin in the southern boundary of property retained by
K. W. Cooper and W. D. Harris; thence along the Cooper and Harr-is southern boundary
North 90 degrees 00 minutes 00 seconds East 1,854:87 feet to the point and -dace of
BEGINNIlV~G.
The- above descripti-on is taken from that certain survey by Law Engineer-ing 3'esting
Company of the Novamet Facility for Inco Alloys International, Inc., dated March 4,
1986 and last revised= May 28; i 986, which survey is incorporated herein by reference
for a more particular description. The above described property contains-approximately
105.13 acres, and is a portion of the K. W. Cooper and W. D. Harris property described
in Deed Book 484, Page 647, of the Chatham County Registry.'
Sec. 30.2. Section 30.1 of this act shall be effective July 1, 1988."
Sec. 31. Nothing in this act authorizes any county or town to acquire any
rights-of--way for the State Highway System, or authorizes any county or town to
construct any street or highway on the State Highway System.
Sec. 32. This act is effective upon ratif cation.
In the General Assembly read three times and ratified this the 23rd day of
June, 1987.
Page 14 S.L. 1987-460 House Bi11917
MEMORANDUM Page 1 of 3
AGENDA ##4e
MEMOP:~~NI~JM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT:Recommendations for Use of HoteUMotel Occupancy Tax.Revenues in 20'01-2002
DATE: February 26, 2001
The attached resolution would authorize the Council to include a specific allocation Af the hoteUmotel
occupancy tax proceeds in the Manager's Recommended Budget.
BACKGROUND
The Town currently levies a room occupancytax of 3% for transient lodging of less than 90 days. The
enabling legislation that grants the Town the right to collect the tax requires that at least 10% of tax
proceeds be used to support-visitor information services and culturaLevents.
In 1995, the Council adopted anon=binding resolution expressing intent to provide $20,000 per year for
ten (10) years for purchaseof the ArtsCenter's building.
The Council has historically allocated 15% of all hoteUmotel tax receipts to the Chapel HilUOrange
County Visitors Bureau.
Last year the Council made five hoteUmotel funding. allocations, which totaled- approximately 22% of
the projected total of hoteUmotel +,~ proceeds. All remaining proceeds we-r-e allocated to municipal
services in general.
In- FY 2000-01 the Council awarded HoteUMotel --Grants to_ 5 groups, based on numbers of visitors
generated by activities and community and visitors services provided:
The ArtsCenter $ 20,000
Chapel HilUOrange County Visitors Bureau $ 87,750
Chapel Hill Public Arts Commission $ 7;000
El Pueb-lo, Inc. $ 5,000
North Carolina High School Athletic Association $ 10,000
Total awarded: $129,750
The projected total of hoteUmotel tax proceeds for FY 2001-02 is $640,000.
DISCUSSION
We believe that budget development for FY 2001-02 will be even more difficult this year than it was last
year. Knowing that, we recommend the allocations be the same as last year and that no action be taken
now to solicit applications from other visitor information services or cultural events groups.
We recommend that the Council instruct the Manager to include the following allocations of hoteUmotel
20
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MEMORANDUM
Page 2 of 3
21
funding in the Mana.ger's P-roposed Budget for 2001-2002:
The ArtsCen.ter $ 20,000
Chapel HilUOrange County Visitors- Bureau $ 9h,000
Chapel Hill -Public Arts Commission $ 7,000
1;1 Pueblo; Inc. $ 5,000
North Carolina. High School Athletic Association $' 10,000
Total (21.5% of projected total of tax revenue) $135,000
RECOlVgMENDA~ION
Manager's Recommendation: That the Council adopt the attached resolution instructing the Manager to
include hoteUmotel funding allocations of $20,000 to the ArtsCenter, $7,000- to the Public Arts
Commission, $5,000 to El Pueblo, Inc., $-10;000 to the North =Carolina High School Athletic
Association, and I S% of hoteUmotel tax receipts to the Chapel HilUOrange County Visitors Bureau in
the Manager's Proposed Budget for 2001-2002.
http://townhall.townofchapelhill.org/archives/agendas/ca010226/4e-Hotel%20Mote1%200... 8/11 /2011
MEMORANDUM Page 3 of 3
22
A RESOLUTION I1ITSTRUCTING THE MANAGER TO INCLUDE HOTEL/MOTEL
FUNDING ALLOCATIONS- OF $20,000 FOR THE ARTSCEN'I'ER, $'7,000 TO THE PUBLIC
ARTS- COMMISSI-ON,_$5,0~00 TO EL PUEBLO; INC., $10,(I00 TO THE NORTH CAROLINA
HIGH SCHOOL ATIII,ETIC ASSOCIATION, AND Z~% OF HOTEL/MOTEL TAX
RECEIPTS TO THE CHAPEIL €~LL/ORANGE COUNT~'_- VISITORS BUREAU TN 'PHL~
MANAGER'S PROP(}SED BUDGET FOR 2001-2002 (2001-02-26/R-4)
WHEREAS, the Council will approve a total amount to be allocated for projects as part of the budget
process for_FY 2001-02; and
WHEREAS, the Counc~ adopted anon-binding resolution in 1995 expressing_ intent to -provide $20,000
per year for ten (10) years for purchase of the ArtsCenter's building; and
WHEREAS, the Council has. followed a policy of allocating 15% of all hoteUrnot~l tax revenues to the
-Chapel HilUOrange County Visitors Bureau; and
WHEREAS, the Council allocated $7,000 to the Chapel Hill Public Arts Commission;- $10,000 to the
North Carolina High~School-Athletic Association last year, and $5,000 appropriation_last year to EI-
Pueblo, Inc.;
NOW, THEREFORE, BE IT RESOLVED by_ the Council of the Town of Chapel Hill that-the Manager
is hereby instructed to include the following hoteUrnotel funding allocations in the Manager's
Recommended Budget for 2x01-2002:
The ArtsCenter $ 20,000
Chapel IiilUOrange County Visitors Bureau $ 96,000
-Chapel Hill Public Arts Commission $ 7;000
El Pueblo, Inc. $ 5,000
North Carolina High School Athletic Association $ 10,000
This the 26~ day of February, 2001.
http://townhall.townofchapelhill. org/archives/agendas/ca010226/4e-Hotel%20Motel%200 _ .. 8/ 11 /2011
23
MITTJTES OF A CONTINUATION OF THE JUNE 22, 1987 REGULAR
MEETING OF THE- ~~+iAYOR AND COUNCIL OF THE TOWN OF
-CHAPEL BILL, I~SLJNICIPAI~ BUILDING, TUESDAY,
JUNE 23, 1987, ?:3-0 Y.M.
Mayor Pro-tem 8111 Thorpe called the meeting- to order. .Council
-Members present were:
Julie Andresen
-David Godschaik
Jonathan Howes
David Pasquini
iJancy Preston
R. D. Smith
Arthur Werner
Mayor Wallace was absent,- e-xcused. Also present were Town
. Mena-ger- David-R-~ Tay_Ior; ~: Assistant Town- -Manager-s Sonny 3~o~ewentha3
and -Ron Secrist, and ~'owa Attoraey .Ralph- Karp3nos._
Sotel/Motel Tax
Manager- Taylor said that the General Assembly had completed
action on June_22 on the Iocal bill enabli-ng the Town to adopt a
3$ taoc an hotel and motel charges. He said the tax would apply
to hotel/motel room charge-s which were subject to sales tax, aid
that the Town expected the tax to provide about $200,0-OU
annually. Mr. Taylor stated that the local act required that 10$
o~ the hotel/motel tax -revenues be used-for visitor information
purposes and support of cultural eveats~ He said he recommended
that the Council adopt an ordinance to put the tax into effect on
July 1, in accord with the-adopted budget.
COUNCIL MEMBER PASQUINI MCNEI7, SECONDED BY COUNCIL MEMBER SMITH
TO ADOPT ORDINANCE 87-6-23/O-1. THE MOTTON PASSED UNAN~EMOtISLY,
t8-0) .
The ordinance, as adopted, reads as follows:
AN ORDINANCE TO IMPOSE A TRANS-TENT OCCUPANCY TAX IN THE TOWN OF
CHAPEL HILL (87-6-22-/0-1)
BE IT ORDAINED by the Council of the Town of Chapel Hill as fol-
lows:
SECTION I
Chapter 19 of the Code of the Town of Chapel Hill is hereby
amended by adding the following:
"Article 1. Transient Occupancy Tax
-L-
~ ~ 24
Sec. 19-1 Imposition and Levy of Tax
The Town of Chapel Hill hereby imposes and levies a room
occupancy tax of three percent (3$}.of the gross receipts of
any- person, firm, corporation, or association derived from
• the rental of any room- lodging or similar accommodation
subject to the- sales tax levied by the State- of North
Carolina ender G.S. 1a5-164.4(3-}.
This tax does not apply to accommodations furnished by
nonprofit char-itable, educational, benevolent, or religious
organizations when furnished in furtfierarce of their nonpro-
fit pureose. This tax is in addition to any State or local
sales tax.
Sec. 19-2 Collection and Payment Hof Tax
Ca) Collection. Every operator of a business subject- to
the tax levied under .this section .shall, on amd after
- the-effe_etive-~-date--o#-the=levy of -the- tax, -col=lent the-
tax-. This tax -shall be .^-.oll~e-cted as pa=t -~#~ -the-charge
for furnishing a taxable accommodation. The tax shall
be stated and charged sepa-rately on the sales records,
and -shall be paid by the purchaser to the operator of
_ the business as trustee for and on account of~the mown
' of Chapel Hill. The- tax shah- be added to the sales
price and small be passed on to the purchaser instead
-of being borne by the operator -of -the business.
(b} Payment. Every person, firm, corpo~ration~, or associa-
ti_on liable for the tax- imposed by thie ordinance
shall, on or before the 15th day of each month after
the effective date of this ordinance-, pxepare and
xender a return based upon the previous month's- collet=~
tions, on a form prescribed by and available from the
Town Revenue Collector .and shall remit to the Town
Revenue Collection Office the amount of the tax then
due.
An operator of a business who collects the occupancy
tax may deduct from the amount remitted to the Town
[Z~} one percent of the total amount-collected pursuant
to this ordinance as reimbursement for the expenses
incurred in collecting the tax.
Sec. 19-3 Penalty for Failure to File Return
Any person, firm, corporation, or association which fails or
refuses to file the return and remit the taxes required by
this ordinance shall pay a penalty of ten dollars ($lU.OU}
for each day's omission.
Sec. 19-4 Additional Penalty for Failure to Pay
Zn case of failure or refusal to file the return or pay the
tax for a period of 30 days after the time required for
-3-
filing such return or for paying-such tax, then-e shall be an
additional tax, as a penalty, of five percent (St}- of -the
tax -due,. in addition to the penalty -prescribed in secti-on
19-3 hereof, with an additional tax of- five. percent -(5i~} for
each additional month or ~ractioa thereof until the tran-
sient occupzncy tax is pafd.
Sec. 29-5 Misdemeanor for willful Violation
Any person, firm, corporation, or association which-wil-lful-
1~ attempts in any manner to evade the -occupancy tax or tyre
requirement to make a return, and who willfully fails-to pay
such tax or make and file-such return, shall, in addition to
the-genalt;es prescribed in this ordinance, be guilty of a
3a3.sdemeanor,and shall- be punished by a fine not to txceed
one- thousand -dollars ($1, 000} or by imprisonment not to
.exceed six-months o= by=both- such fine-and..-i-~aprisoament.
Sec. 19-5 Use and Distribution of Tax Revenue
The Council -shall decide on the allocation of the revenues
collected frcxa this tax annually durin4 #ts budgetfnq
pr-oce-ss with particular cons-ide-ration given to providing
funding for visitor information services- and support for
cultural eventst-and-not less than ten percent (14#~-of the
annual revenues ~shali be used for those purposes.
Sec._ -19-7 Deductions and Re-funt~s~
During any ~aonth following n=month in which a hotel, motel,
or inn has supplied a room to -the same- person for the 90th
consecutive day, the hotel, motel or inn may apply to the
Town Revenue Collector, on a form available from that office
foz that purpose, for a deduction from transient occupancy
taxes due that month in an amount equal to the tax previous-
ly paid on the receipts from the rental of the rooan supplied
for the peziod of 90 continuous-days or more if said rental
is exeaapt froaz the sales tax under GS 105-164.4 (3y . A
refund shall be issued by the Revenue Collector if no
transient occupancy taxes are then due from which a deduc-
tion could be taken.'
SECTION- II
All ordinances and clauses in conflict herewith are hereby
repealed to the extent of said conflict.
- SECTION III
This ordinance shall become effective on July 1, 1967 or upon the
effective date of the Act of the- North Carolina General Assembly
authorizing this room occupancy tax, whichever is later.
25-
This the 23rd dny of June, 198?.
~b~~
[otel/Motel Tax Funds- - Fceques-ts
Managex Taylor stated that the Chamber of Coaunerce hac3 =re-que-sted
$--15, 000 for support to the- t7mbria Jazz Festival ifr late July and
that the ~irts Center had requested $15,00-0 for their Teen
Program. He also said that at the- June 2~ meeting. the Olympic
Festival had requested a-w$iver of the $16,1A6 in fees for police
and transit services du-ring the_ Festival and that it had been
suggested that the occupany tax funds could be used for this
purpose. Mr. Taylor said that if the Courtci-1 funded these three-
-reguests it would virtual~y tgsE all the funds- allocated from the
occupancy tax for visitor information- and cultuzal Services for
this- budget year. He stated that two of the requests were for
funds txrat were needed. immediately and that treeded to be-
allocated before the events -occurred. Mr. Taylor said that the
staff proposed to develop a process for receiving requests for
proposals for the funds in-tie upcoming years but that he dict not
thiflls there was sufficient time in this budget year for that kind
of _process,_ Fie stated that what was budg-eted for these services
was--a tainimum-~f -IO$ of the revenue-s, but -which =would-not-_exceed_
55-0, 0-00. 13e said 3ie ~cecommended resolution R-6 to -fund -the
Chamber of Comiaerce request.
~4~JNCIL MEi~+~ER SMITH MOVED, SEEONDED BY COIINCIL MEM$ER GODSCBAL-K
TO ADOPT RESOLDTION 87-6-22 h~ fi.
Council Member Werner said he felt it was incumbent upon th$
Council to adverts-se for proposals for use of the-ta~ funds. He
-said he was concerned that the public might feel i-t -did trot have-
the oppor-tunny to apply for these funds. He said there needed
to be a formal process far applying for the funds.
Council Member Pasquini agr-eed with Yom. Werner and said that the
Council should not make the decision that evening but to allow
more time fer other, possibly more worthy grojects_, to request
funding. -
Council Member- Andresen asked if the Coun-cil's•meeting schedule
would provide for a process of reviewing other proposals- before
the deadline for the Chamber and Olympic Fesitival's requests.
Manager Taylor responded that there would be no problem with
delaying action on the funding requests until th-e July 6 agenda
but that he did not think there was enough time for the staff to
advertise and receive requests and review those requests before - -
the July 6 meeting.
Manager Taylor also stated that if the Council were to fund the
Olympic Festival's request for $16,100 for the police and transit
services, he would consider this funding to be considered Chapel
Hill's portion of the agreement regarding contingency funds for
the Festival ff it were to lose money,
26
-~-
Council- Member Godschalk asked wTien -the Town had- entered _int-o the
ag~ee3nent regarding the contingency funds. Manager ~Taylar
replied-that the Town had entered into the agreement with Raleigh
and Durham in 1984 when the Triangxe Area was attempting to
entice the Olympic Festival_to`this area.
Council Member Go~ds_chalk spoke in support of fundiag-the fhmnber
of Connnerce's request for the Umbria Jazz Festival since this
proposa-l had come before the-Council at time of discus-sion on the
-o~ccugancy tax and since it seemed to him the perfect place whore
these funds should b-e utilized
Council Member Smith agreed and said that he felt the Council had
indicated that it-would in alI-probability fund the request.
Council Member Werner disagreed that there had been any decision
by the Council on how to use the funds received from the
• occupancy tax . __- _ . _ .
Council Member Pres-tan stated that she was inclined to agree that
the Council should grant the funds- to the current proposals fox
this= year becausE of the timing of the events. She said she
agreed that there should .be- established ~ formal request for
proposal process for up~com~ing years-. She spa7ce 3n support of t-he
Arts Center request and pointed out that they had made their
request to the Human Services Advisory Board during their RFP'=s
-an3 had been told that they should make their request to the
Counetl for funds ..from the-exgected occupancy tax.
Council Member God-schalk said-the merits of the proposals sbould
to considered and agreed that a formal procedure should be
developed but that he felt the proposals for the.-Arts Center and
Chamber of Commerce were valid and met the criteria for use of
the funds.
Mayor Pro-tem Thorpe said he would prefer to-wait until the July
6 meeting to make the decision.
Council Member Pasquini suggested delaying the decision until.
July 13 in order to give the Manager mare time to advertise and
receive further proposals.
COUNCIL MEMBER PASQUINI MOVED, SECONDED BY COUNCIL MEMBER
ANDRESEN FOR A SUBSTITUTE IKOTION TO DELAY ACTION ON THE
HOTEL/MOTEL TAX REQIIESTS DNTIL JULY 13 AND TO HAVE THE MANAGER
ADVERTISE FOR PROPOSALS WITH A DEADLINE FOR RECEIPT OF PROPOSALS
OF JOLY 6.
Manager Taylor reminded the Council that there- was no formal
procedure established to receive the proposals and that he did
not think the Council wished to spend an inordinate amount of
time receiving and reviewing requests.
27
y~~
Council Member Werner said that he felt it was important that
there- be a manna-r in which anyone with a proposal could be
allowed to submit_ it and be reviewed =and considered by the
Council.
Council Member Andresen agreed and .said that there needed to be
time for public comment to be received on how to use the funds.-
Council Member Smith dented that he did not think the -CouACil
really wanted to spend the time reviewir-~g the- various praposals
and have numerous groups presenting the proposals- to the Council
during the Council greetings-.
THE SUBSTYTUTE MOTION CARRIED., (6-2)-, WITH C~NCIL MEMBERS
GODSCHALR. AND- SMITH VOTING AGAZI~ST_.
THE MOTION 71iS SUBSTITUTED, CARRIED, (6-2) , WITH COUNCIL MEMBERS-
GODSCHALK AND SMITH-VOTING AGAINST.
Manager Taylor asked that the Olympic Festival request update be
deferred- to July--~13 ins.tead of -July C~ -so- that all ttie -requests
could be discussed at ane time. Ths Council agreed.
-Smok-e Detector Ordinance in Older Rental Residential Units
COUNCIL MEMBER SNI~IT~i MOVED, SECONDED _BY COUNCIL MEMBER- ~PRESTOI3 TO
ADOgT ORDINANCE 87-6-22/O--3i.
Council Member Godschalk asked how property owners would be
notified. Manager Taylor replied that there would be
adverb=s~ements in the local newspapers as well as letters and
visits by the Fire Department to those residence.
Council Member Werner asked if thisjust applied to aide~r
residences. Manager Taylor replied yes, and that since 19'75 the
I.C. 3uilding Code had required smoke detectors in new
construction.
Council Member Preston asked how the law would be enforced.
Manager Taylor replied that the Fire Department would inspect the
residences and issue any warnings as needed..
THE MOTION PASSED UNANIMOUSLY, (8-Q).
The ordinance, as adopted, reads as follows:
AN ORDINANCE TO REQUIRE SMOKE DETECTORS IN RENTAL RESIDENTIAL
DWELLING UNITS IN TSE TOidN OF ,CHAPEL HILL (87-b-22/O-3)
HE IT ORDAINED by the Council of the Town of Chapel Hill as
follows:
SECTION I
2H.
Chapter 9 of the Town Code (the Housing Code) is amended by
adding a new Section 9-69 to read as follows:
-7-
Section 9-6g. Smoke Detectors Required
(a) Every owner o~f a rental residential dwelling unit
lawfully" constructed without smoke detectors shall
install or ensure that a smoke detector is installed in
the corridor or other space leading_to every bedroom in
each such dwelling unit. Installation must be~complete
and smoke detectors fuily operable within ninety (90)
days after the effective date of this ord-finance.
(b) The sa-oke detector requited by this section shall:
(2) Be battery operated- or attached- to the building`s
-electricaY current;
(2) Be installed in accordance with the- mnnufactur-er's
instructions;
(3) Se activated, provide-an-audible alarm;
(4) Have either a visible light to indicate operabili-
ty or an audible trouble signal designed to
operate at least Every minute for _aeven consecu-
tive days.
(c) T'he owner of every rental residential dwelling unit
where a smoke detector is installed plrsuant to this
section shall mzintain or ensure that the smoke detec-
tor is_ maintained and kept ifl good working order. If $
-battery -operated smoke_ detector is used, batteries
shall be replaced not less than once per year.
SECTION II ,
This ordinance shall 2~e effective ~n Juiy 1, 1987.
This the 23rd day of June,. 1987.
COQNCIL MEI~ER GODSCHALR MdVED, SECONDED BY COIINCITi~ MEMBER WERNER
TO- ADJOIIRN THE MEETING. THE MOTION PASSED IINANII+iOUSLY", (6-0) .
29
The meeting adjourned at 8:20 p.m.
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30
GENERAL ASSEMBLY OF NORTH CAROLINA
1991- SESSION-
CHAPTER 3-92
SENATE BILL G22
AN ACT AUTFPORIZING ORANGE COUNTY TO LEVY AN OCCUPANCY TAX AND
CHAPEL HILL AND CARRBORO TO INCREASE THEIR MOTOR VEHICLE TAXES.
The General Assembly of North Carolina enacts:
Section 1-. Occupancy Tax. (a) Authorization and scope. The Orange County Board
of Commissioners may, by r-esolution, levy a room occupancy tax of up to three percent (3~%0) on
the gross receipts derived_from the rental of any room, lodging, or similar accommodation in the
county subject to sales tax under G_S. 145-164.4(a)(3).
This tax does not apply to accommodations_ furnished by nonprofit charitable,
educational,_ benevolent, or religious organizations when furnished in furtherance of their
nonprof t purpose. This tax is in addition to any State _or local sales or occupancy tax.
(b) Collection. Every- operator of -a business subject to the tax levied under this
section shall, -on and after the-effective date of the levy of the tax, collect-the tax. This tax shall
be collected_ as part of the charge for furnishing a taxable accommodation, The tax shall be
stated -and char-ged separately on the males- records, and shall be paid by the purchaser to the
operator of the business as tr-ustee for and on account of the county. The-tax shall be added to
t_he sales price and shall be passed on to the purchaser instead of i~~ing borne by the operator- of
the business. The county shall design, print, and furnish to- all appropriate_ businesses and
persons in the count3~ the necessary forms fc~r filing returns and instructions to ensure- the full
collection of the tax.
(c) Administration. The county shall administer a tax levied under this section. A
tax levied under this section is due and-payable to the county f Hance officer in monthly
installments on or before the 15th day of the month following- the month in which the tax
accrues. Every person, firm, corporation, or association liable for the tax shall, on or before the
15th day of each month, prepare and render a return on a form prescribed by the county. The
return shall state the total gross receipts derived in the preceding. month from rentals upon which
the taxis levied.
(d) Penalties. A person, firm, corporation, or association who fails or refuses to
file the return required by this section shall pay a penalty of ten dollars ($10.00)- for each day's
omission. In case of failure or refusal to file the return or pay the tax for a period of 30 days
after the time required for filing the return or for paying the tax, there shall be an additional tax,
as a penalty, of five percent (5%) of the tax due in addition to any other penalty, with an
additional tax of five percent (5%) for each additional month or fraction thereof until the tax is
paid. The county may, for good cause shown, forgive the civil penalties provided in this
subsection.
Any person who willfully attempts in any manner to evade a tax imposed under this
section or who willfully fails to pay the tax or make and file a return shall, in addition to all
other penalties provided by law, be guilty of a misdemeanor and shall be punishable by a fine
not to exceed one thousand dollars ($1,000) and imprisonment not to exceed 30 days.
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(e} Use and 13-istribution of Tax Revenue. The Orange County Board of
Commissioners shall decide on the allocation of the revenges collected from this tax annually
during its budgeting process. At least ten percent (10%) of the annual-re-venues shall be used to
provide funding for visitor information services and-ty support cultural events.
The county -may contract with nonprofit organizations to undertake or carry out the
activities- an~i programs for which the revenue may be expended: All-contracts enteredmto with
nonprof t organizations shall require an annual financial audit of any funds expended and a
performance audit of contractual obligations.
(f) ~ Repeal. A tax levied under this section may be.repealed by resolution adopted
by-the Orange County Board of Commissioners. Repeal of a tax levied under this section shall
become effective on the first day of a month and may not become effective untilthe-end of-the
fiscal year in whickthe repeal resolution was adopted. Repeal of a taxlevied under this-section
does not. affect a liability for a tax that attached before ~c effective date of the repeal, nor does it
affect a right to a refund of a tax that accrued be~f-ore the effective date of the repeal:
Sec. 2. Chapel Hill Motor Vehicle Tax. (a) G S. 20-97(a) reads as rewritten:
"(a) All taxes levied- under the provisions of xhis Article are--intended as_compensatory
taxes for the use and privileges -of the public highways of this-State; and shall-.be-paid by-the -
Commissioner to the State Treasurer, to be credited by him to the State Highway Fund; and no
county or-municipality shall levy any license 'or privilege tax upon any motor vehicle licensed
by the State of North Carolina, except that cities -and towns other than the City of Durham may
levy not more than ~~~s-(~60-~~en dollars- ($10.00 per year upon any vehicle resident
therein, and except that the City of Durham may levy. not more than one dollar ($1.-00) per year
upon any vehicle resident therein. Provided, further, that cities and towns may levy, in addition
to the- amounts hereinabove provided for, a sum not to exceed fifteen dollars-($15.00) per- year
upon-each vehicle oper-ated in such city or town as a taxicab."
(b) -This section applies only to -the Town of Chapel Hill.
Sec. 3. Carrboro Motc~rVehicle Tax. (~) G.S. 20-97(a)xeads as rewritten:
"(a) All taxes levied under the provisions of tlris Article are intended as compensatory
taxes for the use and privileges of the public highwsays of this State, and shall be paid by the
Commissioner to the State Treasurer-, to be credited by him to the State Highway Fund; and no
county or municipality shall levy any license or privilege tax upon any motor vehicle licensed
by `she State of North Carolina, except that cities and towns other than the City of Durham may
levy not more than 9~ten dollars ($10.00) per year upon any vehicle resident
therein, and except that the City of Durham may levy not more than one dollar ($1.00) per year
upon any vehicle resident therein. Provided, further, that cities and towns may levy, in addition
to the amounts hereinabove provided for, a sum not to exceed fifteen dollars ($15.00) per year
upon each vehicle operated in such city or town as a taxicab."
(b) This section applies only to the Town- of Carrboro.
Sec. 4. This act is effective upon ratification.
In the General Assembly read three times and ratified this the 25th day of June, 1991.
James C. Gardner
President of the Senate
Daniel Blue, Jr.
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Speaker of the House of Representatives
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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
SESSION LAW 2001-439
SENATE BILL 92
AN ACT TO AUTHORIZE VARIOUS MUNICII'ALITIES AND COUNTIES TO
-LEVY ROOM OCCUPANCY- TAXES.
The General Assembly of North Carolina enacts:
SECTION 14.1. Occupancy tax. - (a) Authorization -and Scope. -The
governing body of the Town of Carrboro may levy a room occupancy tax of up to three
percent (3%) of the gross r-eceipts derived from the rental of any room, lodging, or
accommoda-tion famished by a hotel; motel, innr tourist camp, or simil-ar place within the
town that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3). This
tax is in addition to any State or local sales tax. This tax does not apply to
accommodations furnished by nonproft charitable, educational, or religious
organizations when furnished in furtherance of their nonprofit purpose.
SECTION 14.1.(b) Adminstration_ - A tax levied under this section shall be
levied, administered collected, and repealed as provided in G.S. i60A-21~. The
penalties provided in G.S. 160A-215 apply to a.tax levied under this section.
SECTION 14.1.(c) Distribution and Use of Tax Revenue. -The Town of
Carrboro shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the
Carrboro Tourism Development Authority. The Authority shall use at least two-thirds- of
the funds remitted to it under this subsection to promote travel and tourism in Carrboro
and shall use.the remainder for tour-ism-related expenditures.
The following definitions apply in this subsection:
(1) Net proceeds. - Gross proceeds less the cost to the town of
administering and collecting the tax, as determined by the f nance
officer, not to exceed three percent (3%) of the first five hundred
thousand dollars ($500,000) of gross proceeds collected each year and
one percent (1%) of the remaining gross receipts collected each year.
(2) Promote travel and tourism. - To advertise or market an area or
activity, publish and distribute pamphlets and other materials, conduct
market research, or engage in similar promotional activities that attract
tourists or business travelers to the area. The term includes
administrative expenses incurred in engaging in these activities.
34
(3) Tourism-related expenditures. -Expenditures that; in the judgment of
the Tourism Development Authority, -are designed to increase the use of
lodging facilities, meeting facilities, and-convention facilities in a town
by attracting tourists or business travelers to the town. The term
includes tourism-related capital expenditures.
SECTION 14.2. Carrbor-o Tourism Development Authority. - (a)
Appointment and Member-ship. -When the governing -body of the Town of Carrboro
adopts _a resolution levying a room occupancy tax under this Part, it shall -also adopt a
resolution creating a Tourism Development Authority, which shall ~be a public authority
under tl-re Local Government Budget and Fiscal Control Act. The resolution shall provide
-for the -membership of the Authority, including the members' terms of office, and for the
filling of vacancies- on the. Authority. At least one-third of the members must be
individuals who are affiliated with businesses that collect the tax in the town, .and at least
three-fourths of the members must be individuals who are currently active in the
promotion of travel and tourism in the town. The-governing--body -of the Town of
Carrboro shall designate one member of the Authority as chair and shall determine the
compensation, if any, to be paid to members of the Authority.
The Authority shall meet at the call of the chair and shall adopt rules of
procedure to govern its meetings. The Finance Offieer for the Town of Carrboro shall be
the ex officio finance officer of the Authority.
SECTION 14.2.(b) Duties. -The Authority shall expend the net_proceeds of
the tax levied under this Part for the purposes provided in this Part. Thy Authority shall
promote travel, tourism,-and conventions in the town, sponsor tourist-related events and-
activities in the town, and finance tourist-related capital projects in the town.
SECTION 14.2.(c) Reports. -The Authority shall report quarterly and at the
close of the fiscal year to the governing body of the Town of
Carrboro
on its receipts and expenditures
for the preceding quarter and for the year in such detail as the board may require.
35
ATTAC)IiNIENT C -1
A ~ESOLUT_ION ESTABLISHING A HOTEL ROOM OCC-JPANCY TAX
WHEREAS;the Town of Carrboro was authorized by Chapter 439, Part XIV of the 2001
Session-Laws to adopt a resolution Levying a-tax of up to 3%-on the gross receipts derived from
the rental of hotel or motel rooms; and
WHEREAS, G.~. § 160A-215 establishes procedures for the adoption, administr-ation and
enforcement of such a tax;
NOW T~iEREFORE, THE BOARD OF ALDERMEN OF THE TOWN OF CARRBORO
RESOLVES:
Seetion 1. The Carrboro Town Code is amended by adding a new Chapter 8A as follows:
CHAPTER 8A
HOTEL AND MOTEL ROOM OCCUPANCY TAX
Section 8A-1. Tax Levied:
There is hereby levied a room occupancy tax of three percent (3%} of the gross receipts
derived-from the rental of any room, lodgingrorAccommodation fanushed by a hotel, motel, inn,
tourist camp, or similar place within the town that is subject to sales tax imposed by the State
under G.B. 10~-164.4(a)(3}. This tax is in addition to any State or -local sales tax. This tax does
not apply to accommodations furnished by nonprofit charitable, educational, or religious
organizations when furnished in furtherance-of their nonprofit purpose.
Seetion 8A-2. Payment of Tax.
(a) As provided in G.S. 160A-215(c), a retailer who is required to remit to the
Depar-tment of Revenue the State sales tax imposed by G.S. 105-164.4(a)(3) on accommodations
is required to remit a room occupancy tax to the town on and after the effective date of this
Chapter. The room occupancy tax applies to the same gross receipts as the State sales tax on
accommodations and is calculated in the same manner as that tax. A rental agent or a facilitator,
as defined in G.S. 105-164.4(a)(3), has the same responsibility and liability under the room
occupancy tax as the rental agent or facilitator has under the State sales tax on accommodations.
(b) If a taxable accommodation is furnished as part of a package, the bundled transaction
provisions in G.S. 106-1-64.4D apply in determining the sales price of the taxable
accommodation. If those provisions do not address the type of package offered„ the person
offering the package may determine an allocated price for each item in the package based on a
reasonable allocation of revenue that is supported by the person's business records kept in the
ordinary course of business and calculate tax on the allocated price of the taxable
accommodation.
36
ATTACIiMENT C - 2
(cj A retailer must separately state the room occupancy tax. Room occupancy taxes paid
to a retailer-are-held in trust for and on accounrof the town.
(d) The town shall design and furnish to all appropriate ?~usinesses and.- persons in the
town the necessary forms- for filing returns and instructions to ensure the full collection of the
tax. An operator of a business who collects a room occupancy tax may deduct frem the amount
remitted to the town a discount equal to the discount the State allows the retailer for State sales
and use tax.
(e) As provided in G.S. 160A-215(d), the tax levied by this- Chapter shall be due and
payable to the town finance officer in monthly installments- on- or before ti'~e 20th day of the
month following the month in which the tax accrues. Every person; firm,. corporation, or
association-liable for-the tax shall, on or before the 20th-day of each month, prepare and render a
return on a form prescribed by the town. The return shall Mate the total gross receipts derived in
the preceding:-month from rentals upon. which the-tax is levied. A room occupancy tax return
filed with the town is not a public record and may not be disclosed-except in accordance with-
G.S. 160A-208.1.
Section $A-3. Penalties.
As provided in G.S. 160A-215(e), a person, firm, corporation, or association who fails or
refuses to file a room occupancy-tax return or pay a r-0om occupancy tax as required by_ this
Chapter shall be subject to the civil and criminal penalties set by G.S. 105-236 for failur-e to pay
orfile-a return for State sales and use taxes. The Board of Aldermen has the same authority to
waive the penalties for a room occupancy tax that the Secretary of Revenue has to waive the
penalties for .State sales and use taxes.
Section 8A-4. Distribution and Use of Tax Revenue.
The-town shall, on a quarterly _basis, remit the net proceeds of the occupancy tax to the
Carrboro Tourism Development Authority (CTDA}. The CTDA shall use at least two-thirds of
the funds remitted to it under this section to promote travel and tourism in Carrboro and shall use
the remainder for tourism-related expenditures. The following definitions apply in this section:
(1) Net Proceeds. Gross proceeds less the cost to the town of administering
and collecting the tax, as determined by the finance officer, not to exceed
three percent (3%) of the first five hundred thousand dollars ($500,000) of
gross proceeds collected each yeaz and one percent (1%) of-the remaining
gross receipts collected -each year.
(2) Promote travel and tourism. To .advertise or market an area or activity,
publish and distribute pamphlets and other materials, conduct market
reseazch, or engage in similar promotional activities that attract tourists or
business travelers to the area. The term includes administrative expenses
incurred in engaging in these activities.
37
ATTACHMENT C - 3
(3) Tourism-related-expenditures. Expenditures that, in the judgment of the
CTDA, are designed to increase the use of lodging facilities, meeting
facilities, and convention facilities in the town by attracting tourists or
business travelers to the town. The term -includes tourism-related capital
expenditures.
Section 8A-5. Carrboro T-ourism Development Authority: A~pointrnentand Membership:
(a) The Carrboro Tourism Development Authority (CTDA)_ is hereby created, which
shall be a public authority under the Local Government Budget and Fiscal Control Act.
(b) The CTDA shall consist of three members appointed by the Board of Aldermen.
Members need no reside within the xown, but at least one-third of the members must be
individual-s who are affiliated with businesses that collect the. tax in the town, and at Ieast three-
fourths of the members -must be individuals vGrho are currently active in the promotion of travel
and tourism in the town.
(c) Subject to subsection (d), members shall be appointed for terms of one year... The
initial terms of a1I appointees shall expire on January 31 of the year that follows the initial
appointments. Subsequent terms shall run frown February 1 of one yeaz to January 31 of-the
following yeaz. Vacancies shall be filled for the remainder of the unexpired -term. Members may
be appointed to successi~,~e terms without limitation.
(d) Members shall serve at the pleasure of the Board of Aldermen and may be removed
by the Board at any time with or without. cause.
(e) Members shall serve without compensation.
Section 8A-6. Meetings of CTDA.
(a) The CTDA shall meet as necessary to carry out its- powers and duties as specified
below. All meetings shall be held in conformity with the Open Meetings Law.
(b} A quorum for the CTDA shall consist of three members, except that if one seat is
vacant, a quorum shall consist of two members. A11 actions- of the CTDA shall be taken by
majority-vote, a quorum being present_
(c} Upon the initial appointment of members to the CTDA and upon the commencement
of each new term, the Board of Aldermen shall appoint one member to serve as chair of the
CTDA during that term. If a vacancy occurs during a term, the Board shall designate another
member to serve as chair for the remainder of that term. The chaix may take part in all
deliberations and vote on all issues.
Section 8A-7. Powers and Duties of the CTDA.
38
ATTACHMENT C - 4
(a) The CTDA shall expend the net proceeds of the tax levied under this Chapter for +.he
purposes provided in this section 8A-4. The Authority shall promote travel, tourism, and
conventions in the town, sponsor tourist-related events and activities in the town, and fmance
tourist-related capital projects in the town. The town's finance officer shall serve ex officio as
the finance officer for the CTDA.
(U) The CTDA shall report quarterly and- at the close of the fiscal year to the Board of
Aldermen on its receipta acrd expenditures for the preceding quarter and for the year in such
detail as the Boazd may require.
Section 2. This resolution shall become effective on the first day of the second month
following its adoption.
39
ATTAC)E~VIENT ~ -1
MEMQItANDUM
Memorandum to~_ Steve Stewart
From: Mike Brough
Subject: Hotel Occupancy Tax
Date: March 1, 2011
Attached is a resolution adding a new Chapter 8A to the Town Code to -levy ahotel- and motel
room occupancy tax. It is in format a resolution rather than an ordinance because G.S. 160A-
215, which establishes procedures for -the adoption, administration, and enforcement of such a
tax, specifies. for. some-reason that this must be done by_-resolution. I.believe-the format is
irrelevant i.e. the-resolution has the-same force as an ordinance.
While the above cited general statute establishes procedural -requirements for those
municipalities that have -the power to levy such a tax, .the- substantive authority for such a tax is
found in local -legislation. Many municipalities have such local acts, and apparently all such
local acts are essentially identical. In fact, I spoke with Bob Hornik today, and he told me that he_
was- advised by a member of the Legislative Drafting staff in Raleigh tt'~at it was a waste of time
for Hillsborough to ask for anything_different than had-been approved for other municipalities. I
mention this because some of the provisions of our local act are far from ideal and not what I
would have drafted had there been a choice.
In particular, not only are there limitations on the way this tax money can be spent, but the
expenditures will actually be made by the Cazrboro Tourism Development Authority, not the
Board of Aldermen. In other words, the CTDA is not an advisory boazd but- an independent
authority. However, the BOA appoints the members of the CTDA -and can remove-them at the
Board's discretion. In addition, this draft establishes one year, non-staggered terms for the entire
membership of the CTDA. Hopefully, this will assure that the CTDA is not operating at cross
purposes with the Board's policies.
There is one other peculiarity, and that is the local act's requirement that one-third of the
members of the CTDA .must be "individuals who are affiliated with businesses that collect the
tax," and three-fourths of the members must be "individuals who are currently active in the
promotion- of travel and tourism in the town." I think the latter requirement can be interpreted
fairly loosely to include business owners who depend on walk-in traffic, and so it should not be
difficult to meet this requirement. But it seems to me the former requirement will require an
appointment of someone associated with our one hotel. For that reason, as well as the reason
expressed above, this draft provides for only three members on the CTDA. The Board may
decide that a larger membership is preferable, and I would be happy to revise the draft
accordingly.
Please feel free to let me know if you have any questions or comments.
~Gtch m~~-t~ ~ 40
-GENERAL ASSEl~IBLY OF NORTH CAROLINA
SESSION 2011
SESSION LA.W 26-11-69
SENATE BILL 269
AN ACT TO AUTHORIZE THE TOWN OF HILLSBOROUGFI TO LEVY A ROOM
OCCUPANCY TAX.
The General Assembly of North Carolina enacts:
SECTION 1.1. Occupancy tax. - (a) Authorization and Scope. -The Town Board
of the Town -of Hillsborough may -levy a room occupancy tax of up to three percent (3%) -of the
gross receipts derived from the rental of any room, lodging, or accommodation furnished by a
hotel, motel, inn, tourist camp, or similar place- within the town that is subject to sales tax
imposed by the State under G.S. 105-164.4(a)(3). This tax is in addition to any State or local
sales tax. This tax does not apply to accommodations furnished by nonprofit charitable,
educational, or religious organizations vvhen-furnished=-in -furtherance of their nonprofit
purpose.
SECTION 1.1.(b) Administration. - A tax levied under this-section shall be levied,
administered, collected, and repealed as provided in G.S. 160A-215. ThE penalties provided in
G.S. 160A-215 appl-y to a tax levied under this section.
SECTION LL(c) distribution and Use of 'Tax Revenue. -The Town of
Hillsborough shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the
Hillsborough- Tourism Development Authority. Tire Authority shall use at least two-thirds of
the funds remitted to it under this subsection to .promote -travel ar~d tourism in the Town of
Hillsborough and shall use the remainder for tourism-related expenditures.
T-ho following definitions apply in this subsection:
(1) Net proceeds. -Gross proceedsr Less the eost to the town of administering.
and collecting the tax, as determined by the f-tnance officer, _nut to -exceed
three percent (3%) of the first five hundred thousand dollars ($500,000) of
gross proceeds collected each year and one percent (1%) of the remaining
gross proceeds collected each year.
(2) Promote travel and tourism. - To advertise or market an area or activity,
publish and distribute pamphlets and other materials, conduct market
research, or engage in similar promotional activities that attract tourists or
business -travelers to the area; the term includes administrative expenses
incurred in engaging in the listed activities.
(3) Tourism-related expenditures. -Expenditures that, irL the judgment of the
Hillsborough Tourism Development Authority, are designed to increase the
use of lodging facilities, meeting facilities, or convention facilities in the
town or to attract tourists or business travelers to the town. The term
includes tourism-related capital expenditures.
SECTION 1.2. Tourism Development Authority. - (a) Appointment and
Membership. -When the Town Board adopts a resolution levying a room occupancy tax under
this act, it shall also adopt a resolution creating the. Hillsborough Tourism Development
Authority, which shall be a public authority under the Local Government Budget and Fiscal-
Control Act. The resolution shall provide for the membership of the Authority, including the
members' terms of office, and for the filling of vacancies on the Authority. At least one-third
of the members shall be individuals who are affiliated with businesses that collect the tax in the
town, and at least one-half of the members shall be individuals who are currently active in the
promotion of the travel and tourism in the town. The Town Board shall designate one member
of the Authority as chair and shall determine the compensation, if any, to be paid to members
of the Authority. The Authority shall meet at the call of the chair and shall adopt rules of
mmmo
41
procedure to govern its meetings.-The finance- officer for the Town of Hillsborough shall be the
ex officio finance officer-of the Authority.
SECTION 1.2.(b) Duties. -The Tourism Development Authority shall expend the
rret proceeds of the tax levied under this act for the purposes-provided in Section 1 of this act.
The Authority shall promote travel, tourism, and conventions in the town, sponsor
tourist-related events and activities in the town, and finance tourist-related capital projects in
the town.
SECTION 1.2.(c) Reports. -The Tourism Development Authority shall report
quarterly and at the close of each fiscal year to the Hillsborough-Town Board an its receipts
and expenditures for the preceding quarter and for the year in such detail as t3~e Town Board
may require.
SECTION 2. G.S. 160A-21S(g) reads as rewritten:
"(g) Applicability. -Subsection (c) of this section applies to all cities that levy an
occupancy tax. To the extent subsection (c) conflicts with any provision of a local act,
subsection (c) supersedes that provision. The remainder of-this section applies only to Beech
Mountain District W, to the Cities of Belmont, Conover, Eden, Elizabeth City, Gastonia,
Goldsboro, Greensboro, Hickory, High Point, Jacksonville, .Kings Mountain, Lenoir,
Lexington, Lincolnton, Lowell, Lumberton, Monroe, Mount Airy, Mount Holly, Reidsville,
Roanoke Rapids, Salisbury, Shelby, Statesville, Washington, and Wilmington, to the Towns of
Ahoskie, Beech Mountain,-Benson, Bermuda- Run, B-lowing Rock; Boiling Springs, Boone,
Burgaw, Carolina Beach, Carrboro, Cooleemee, Cramerton, Dallas, Dobson, Elkin,_Franklin,
Hillsborou igh, Jonesville, Kenly, Kure Beach, Leland, McAdenville, Mocksviile,_ Mooresville,
Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, Selma, Smithfield, St.
Pauls, Troutman, Tryon, West Jefferson, Wilkesboro, Wrightsville Beach, Yadkinville, and
Yanceyvilie, and to the municipalities in Avery and Brunswick Counties."
SECTION 3. This act is effective w'r-yen it-becomes law.
In the General Assembly read three times and ratified this the 11 ~' day of May,
2011.
s/ Walter H_ Dalton
President of the Senate
s/ Thom Tillis
Speaker-of the House of Representatives
Page 2 Session Law 2011-69 SL2011-0069