Chapter 21 - Taxation

A room occupancy tax of 5% is levied, as authorized in North Carolina Session Law 2013-61 and its predecessors.

The expansion of the Local Government Sales and Use Tax Act, as defined in Section 4 of Chapter 832 of the 1987 Session Laws, is hereby adopted. The taxes hereby imposed and levied shall apply to the same extent and be subject to the same limitations as are set forth in N.C.G.S. Chapter 105, Articles 39, 40, 41 and 42, as amended

Collection of the expanded local government sales and use tax by the North Carolina Secretary of Revenue, and liability therefore, shall begin and continue on and after the first day of March 1988.

The net proceeds of the taxes levied herein shall be distributed by the Secretary of Revenue to Henderson County and the municipalities therein as prescribed by N.C.G.S. 105-472, 105-486, and 105-501. The amount distributed to Henderson County shall be divided among the County and the municipalities herein in accordance with the method previously selected by the Board of Commissioners of Henderson County in accordance with the provisions of N.C.G.S. 105-472.

1. The North Carolina General Assembly authorized the levy of local government sales and use taxes through enactment of Chapter 77 of the 1971 Session Laws, codified as N.C.G.S. Chapter 105, Article 39; Chapter 908 of the 1983 Session Laws, codified as N.C.G.S. Chapter 105, Articles 40and 41; and Chapter 906 of the 1985 Session Laws (Regular Session 1986), codified as N.C.G.S. Chapter 105, Article 42.
2. These sales and use taxes authorized by the General Assembly have been levied in Henderson County by action of the Board of Commissioners acting pursuant to the authorizing legislation.
3. Enactment by the General Assembly of Chapter 832 of the 1987 Session Laws redefined the situs of a transaction for the purpose of collecting local government sales and use taxes, thus redefining the application of those taxes and requiring re adoption of these taxes by the County Board of Commissioners.
4. Section 10 of Chapter 832 of the 1987 Session Laws provided that failure to adopt expansion of the Local Government Sales and Use Tax Act will result in repeal of these taxes in Henderson County because they would be inconsistent with the scope of levies authorized in N.C.G.S. Chapter 105,Articles 39, 40, 41 and 42, as amended.
5. A public hearing was held on November 18, 1987, to consider the expansion of local government sales and use taxes authorized by N.C.G.S. Chapter 105Articles 39, 40, 41 and 42, and interested citizens presented their views to the Board of Commissioners.
6. The Board of County Commissioners caused public notice of the public hearing to be given, as required by Section 9 of Chapter 832 of the 1987 Session Laws, at least 10 days prior to the date of the hearing.
7. The Board of Commissioners of Henderson County does hereby find that adoption of the expansion of the Local Government Sales and Use Tax Act within Henderson County is both desirable and necessary to adequately finance the operation of the County and cities and towns herein.