Sec. 19-11. - Imposition and levy of tax.

The Town of Chapel Hill hereby imposes and levies a room occupancy tax of three (3) per cent 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 under G.S. 105-164.4(3).

This tax does not apply to accommodations furnished by nonprofit charitable, educational, benevolent, or religious organizations when furnished in furtherance of their nonprofit purpose. This tax is in addition to any state or local sales tax.

(Ord. No. 87-6-22/O-1, § 1)

Sec. 19-12. - Collection and payment of tax.

(a)

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 charged separately 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 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.

(b)

Payment. Every person, firm, corporation, or association liable for the tax imposed by this article shall, on or before the fifteenth day of each month after the effective date of this article, prepare and render a return based upon the previous month's collections, 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 one (1) per cent of the total amount collected pursuant to this chapter as reimbursement for the expenses incurred in collecting the tax.

(Ord. No. 87-6-22/O-1, § 1)

Sec. 19-13. - 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 article shall pay a penalty of ten dollars ($10.00) for each day's omission.

(Ord. No. 87-6-22/O-1, § 1)

Sec. 19-14. - Additional penalty for failure to pay.

In case of failure or refusal to file the return or pay the tax for a period of thirty (30) days after the time required for filing such return or for paying such tax, there shall be an additional tax, as a penalty, of five (5) per cent of the tax due, in addition to the penalty prescribed in section 19-5 hereof, with an additional tax of five (5) per cent for each additional month or fraction thereof until the transient occupancy tax is paid.

(Ord. No. 87-6-22/O-1, § 1)

Sec. 19-15. - Misdemeanor for willful violation.

Any person, firm, corporation, or association which willfully attempts in any manner to evade the occupancy tax or the requirement to make a return, and who willfully fails to pay such tax or make and file such return, shall, in addition to the penalties prescribed in this article, be guilty of a misdemeanor, and shall be punished by a fine not to exceed one thousand dollars ($1,000.00) or by imprisonment not to exceed six (6) months or by both such fine and imprisonment.

(Ord. No. 87-6-22/O-1, § 1)

Sec. 19-16. - Use and distribution of tax revenue.

The council shall decide on the allocation of the revenues collected from this tax annually during its budgeting process with particular consideration given to providing funding for visitor information services and support or cultural events, and not less than ten (10) per cent of the annual revenues shall be used for those purposes.

(Ord. No. 87-6-22/O-1, § 1)

Sec. 19-17. - Deductions and refunds.

During any month following a month in which a hotel, motel, or inn has supplied a room to the same person for the ninetieth consecutive day, the hotel, motel or inn may apply to the town revenue collector, on a form available from that office for that purpose, for a deduction from transient occupancy taxes due that month in an amount equal to the tax previously paid on the receipts from the rental of the room supplied for the period of ninety (90) continuous days or more if said rental is exempt from the sales tax under G.S. 105-164.4(3). A refund shall be issued by the revenue collector if no transient occupancy taxes are then due from which a deduction could be taken.

(Ord. No. 87-6-22/O-1, § 1)