House approves Jacksonville occupancy tax

RALEIGH - The House on Monday night gave its final approval to a bill that would allow the city of Jacksonville and five Gaston County municipalities to levy an occupancy tax.

The Gaston County municipalities are Lowell, Mount Holly, Cramerton, McAdenville and Ranlo.

Under the legislation, the municipalities would be allowed to charge a tax of up to 3 percent on hotel costs. That would be in addition to the 3 percent occupancy taxes already in place in Onslow and Gaston counties.

The occupancy taxes are also in addition to the 6.75 percent state and local sales taxes assessed on hotel room rates, bringing the total taxes charged on rooms to 12.75 percent.

The bill was introduced by Sen. Harry Brown, R-Gaston. Sen. David Hoyle, D-Gaston, who added the Gaston County towns onto the bill in the Senate, said earlier that while those towns don’t currently have hotels, the tax authorization would be in place should one come to their municipality.

If the municipalities levy the tax, they are also required to establish a tourism development authority. The tourism development authority’s duties would be to spend the proceeds from the tax and to promote travel, tourism and conventions in the municipality. It could also sponsor tourist-related events and activities in the town as well as finance tourist-related projects.

The city of Lenoir was added to the list of municipalities authorized to adopt an occupancy tax while the bill was in House committee.

The bill passed the House by a 84-24 vote, now goes back to the Senate.

Barry Smith can be reached at bsmith@link.freedom.com.