§ 105-551. Tax on gross receipts authorized. - North Carolina Statutes

§105‑551.  Tax on gross receipts authorized.

(a)        Tax. – The board oftrustees of an Authority may levy a privilege tax on a retailer who is engagedin the business of leasing or renting U‑drive‑it vehicles ormotorcycles based on the gross receipts derived by the retailer from the short‑termlease or rental of these vehicles. The tax rate must be a percentage and maynot exceed five percent (5%). A tax levied under this section applies to short‑termleases or rentals made by a retailer whose place of business or inventory islocated within the territorial jurisdiction of the Authority. This tax is inaddition to all other taxes.

(b)        Restrictions. – Theboard of trustees of an Authority may not levy a tax under this section orincrease the tax rate of a tax levied under this section until all of thefollowing requirements have been met:

(1)        The board oftrustees has held a public hearing on the tax or the increase in the tax rateafter giving at least 10 days' notice of the hearing.

(2)        If the Authority hasa special tax board, the special tax board has adopted a resolution approvingthe levy of the tax or the increase in the tax rate.

(3)        The board ofcommissioners of each county included in the territorial jurisdiction of theAuthority has adopted a resolution approving the levy of the tax or theincrease in the tax rate.

(c)        Special TaxDistrict. – If a regional transportation authority created under Article 27 ofChapter 160A of the General Statutes has not levied the tax under this sectionor has levied the tax at a rate of less than five percent (5%), it may create aspecial district that consists of the entire area of one or more countieswithin its territorial jurisdiction and may levy on behalf of the specialdistrict the tax authorized in this section. The rate of tax levied within thespecial district may not, when combined with the rate levied within the entireterritorial jurisdiction of the authority, exceed five percent (5%). Theregional transportation authority may not levy or increase a tax within thespecial district unless the board of commissioners of each county in thespecial district has adopted a resolution approving the levy or increase.

A special district createdpursuant to this subsection is a body corporate and politic and has the powerto carry out the purposes of this subsection. The board of trustees of theregional transportation authority created under Article 27 of Chapter 160A ofthe General Statutes shall serve, ex officio, as the governing body of aspecial district it creates pursuant to this subsection. The proceeds of a taxlevied under this subsection may be used only for the benefit of the specialdistrict and only for the purposes provided in G.S. 105‑554. Except asprovided in this subsection, a tax levied under this subsection is governed bythe provisions of this Article. (1997‑417, s. 3; 1998‑98,s. 34; 1999‑445, s. 3; 1999‑452, s. 27.)