Resources

Please find below numerous helpful resources for board of directors and management leadership.

Alaska
The Foraker Group
http://www.forakergroup.org

Arizona
Alliance of Arizona Nonprofits
http://www.arizonanonprofits.org

California
California Association of Nonprofits
https://calnonprofits.org

Colorado
Colorado Nonprofit Association
http://www.coloradononprofits.org

Connecticutt
CT Community Nonprofit Alliance
https://ctnonprofitalliance.org

Delaware
Delaware Alliance for Nonprofit Advancement
http://www.DelawareNonprofit.org

District of Columbia
Center for Nonprofit Advancement
https://www.nonprofitadvancement.org

Florida
Florida Nonprofit Alliance
http://www.flnonprofits.org

Hawaii
Hawai`i Alliance of Nonprofit Organizations
https://hano-hawaii.org

Idaho
Idaho Nonprofit Center
http://www.idahononprofits.org

Illinois
Forefront
https://myforefront.org

Iowa
Iowa Nonprofit Resource Center
http://inrc.law.uiowa.edu

Kansas
Kansas Nonprofit Allies

Kentucky
Kentucky Nonprofit Network
https://www.kynonprofits.org

Louisiana
Louisiana Alliance of Nonprofits
https://www.lano.org

Maine
Maine Association of Nonprofits
https://www.nonprofitmaine.org

Maryland
Maryland Nonprofits
https://www.marylandnonprofits.org

Massachusetts
Maryland Nonprofits

Michigan
Michigan Nonprofit Association
https://www.mnaonline.org

Minnesota
Minnesota Council of Nonprofits
http://www.forakergroup.org

Mississippi
Mississippi Alliance of Nonprofits and Philanthropy
https://alliancems.org

Missouri
Missouri State Associations

Montana
Montana Nonprofit Association
https://www.mtnonprofit.org/

Nebraska
Nonprofit Association of the Midlands
http://www.nonprofitam.org

Nevada
Alliance for Nevada Nonprofits
https://alliancefornevadanonprofits.com

New Hampshire
New Hampshire Center for Nonprofits
https://www.nhnonprofits.org

New Jersey
Center for Non-Profits
https://njnonprofits.org

New Mexico
New Mexico Thrives
https://www.nmthrives.org

New York
New York State Associations

North Carolina
North Carolina Center for Nonprofits
https://www.ncnonprofits.org

North Dakota
North Dakota Association of Nonprofit Organizations
https://www.ndano.org

Oklahoma
Oklahoma Center for Nonprofits
https://www.oklahomacenterfornonprofits.org/

Oregon
Nonprofit Association of Oregon
https://nonprofitoregon.org

Pennsylvania
Pennsylvania Association of Nonprofit Organizations
https://pano.org/

South Carolina
Together SC
www.scfea.com

Tennessee
Tennessee Nonprofit Allies

Utah
Utah Nonprofits Association
https://utahnonprofits.org

Vermont
Common Good Vermont
https://commongoodvt.org

Virginia
Center for Nonprofit Excellence
https://www.thecne.org

Washington
Washington Nonprofits
https://washingtonnonprofits.org

West Virginia
West Virginia Nonprofit Association
http://www.wvnpa.org

Wyoming
Wyoming Nonprofit Network
https://wynonprofit.org

Library of Congress’ Congressional Research Services – Hybrid Organizations
https://sgp.fas.org/crs/misc/RL30533.pdf

Association of Nonprofit Accounts and Finance Professionals (ANAFP)https://www.anafp.org/

National Association of Black Nonprofits (NABN)
https://www.blacknonprofits.org

National Association of Nonprofit Organizations & Executives (NANOE)
https://nanoe.org/

National Council of Nonprofits
https://www.councilofnonprofits.org/

National Nonprofits (Jobs)
https://nationalnonprofits.org/

Nonprofit Employees Association
https://www.nanpp.org/

Society for Nonprofits
https://www.snpo.org/

Robert’s Rules of Order – Official Website
https://robertsrules.com/

Robert’s Rules of Order – Simplified
https://assembly.cornell.edu/sites/default/files/roberts_rules_simplified.pdf

State Links for Exempt Organizations

IRS Form 990 Return of Organization Exempt from Income Tax (and various sub-classifications)


Types of Common Nonprofits – An Incomplete List of All Types

The following information is subject to change without notice.

501 (c) 3 Nonprofit – Charitable Organizations

Charitable Organizations are those organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational, fostering national or international amateur sports competition, and preventing cruelty to children or animals.

The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

Every organization that qualifies for tax-exempt status under Section 501 (c) 3 is classified as a private foundation unless it meets one of the exceptions listed in Section 509 (a) as a private charity. Please see the IRS website for details.

Private foundations typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources) and most have as their primary activity the making of grants to other charitable organizations and to individuals, rather than the direct operation of charitable programs.

Not Permitted

  • The net earnings of the organization may not inure to the benefit of any member.
  • Are prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.
  • Certain activities or expenditures may not be prohibited depending on the facts and circumstances. For example, certain voter education activities (including presenting public forums and publishing voter education guides) conducted in a non-partisan manner do not constitute prohibited political campaign activity. In addition, other activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, would not be prohibited political campaign activity if conducted in a non-partisan manner. On the other hand, voter education or registration activities with evidence of bias that (a) would favor one candidate over another; (b) oppose a candidate in some manner; or (c) have the effect of favoring a candidate or group of candidates, will constitute prohibited participation or intervention.

501 (c) 4 Nonprofit – Civic Leagues and Social Welfare Organizations

Several different organizations fall within this category. In general, each may be performing some type of public or community benefit but whose principal feature is lack of private benefit or profit. They include the aforementioned civic leagues and social organizations with specific mentions of home associations, veterans organizations and local associations of employees.

Civic Leagues and Social Welfare Organizations operate exclusively to promote social welfare. They must operate primarily to further the common good and general welfare of the people of the community (such as by bringing about civic betterment and social improvements).

Below are examples of civic leagues as provided by the IRS.

  • An organization operating an airport that serves the general public in an area with no other airport and that is on land owned by a local government, which supervises the airport’s operation,
  • A community association that works to improve public services, housing and residential parking; publishes a free community newspaper; sponsors a community sports league, holiday programs and meetings; and contracts with a private security service to patrol the community,
  • A community association devoted to preserving the community’s traditions, architecture and appearance by representing it before the local legislature and administrative agencies in zoning, traffic and parking matters,
  • An organization that tries to encourage industrial development and relieve unemployment in an area by making loans to businesses so they will relocate to the area and
  • An organization that holds an annual festival of regional customs and traditions.

Not Permitted

  • The net earnings of the organization may not inure to the benefit of any member.
  • Carrying on a business with the general public in a manner similar to organizations operated for profit
  • Direct or indirect participation or intervention in a political campaign on behalf of or in opposition to any candidate for public office
  • Operating a social club for pleasure, benefit or recreation of members versus the general public

A Homeowners’ Association (HOA) is an organization of all of a development’s lot owners that enforces covenants to preserve the architecture and appearance of the development. It also generally owns and maintains certain common green areas and sidewalks. Members’ dues and assessments generally support these organizations.

A homeowners association income tax return, differs from other nonprofits to take advantage of certain tax benefits that allow the association to exclude exempt function income from its gross income (2020).

Not Permitted

  • The net earnings of the organization may not inure to the benefit of any member.
  • Serve a “community,” an area bearing a reasonably recognizable relationship to an area ordinarily identified as a governmental subdivision or unit thereof,
  • Not performing exterior maintenance on private dwellings (see HOA Covenants), and
  • Open the facilities the association maintains to the general public rather than restricting access to members only.

Certain types of Veterans Organizations may qualify for exemption because their activities promote social welfare, however, the composition of their membership determines whether they’re eligible for charitable contributions. If the organization has a bar for members, determine if it is a separate corporation, which may qualify under IRC Section 501 (c) 7.

Not Permitted

  • The net earnings of the organization may not inure to the benefit of any member.

Local Association of Employees is an organization whose membership is limited to only employees in a particular municipality and its articles of organization, constitution or bylaws must evidence it devotes its net earnings exclusively to charitable, educational, or recreational purposes.

Not Permitted

  • The net earnings of the organization may not inure to the benefit of any member.

501 (c) 4 Nonprofit – Labor, Agricultural and Horticultural Organizations

The objectives of these organizations must be for the betterment of conditions of those engaged in the pursuits of labor, agriculture, or horticulture; the improvement of the grade of their products; and the development of a higher degree of efficiency in their respective occupations. Unlike other 501 (c) organizations, they are permitted to engage in lobbying activities to pursue their missions.

Not Permitted

  • The net earnings of the organization may not inure to the benefit of any member.
  • Its principal activity cannot be to receive, hold, invest, disburse or otherwise manage funds associated with savings or investment plans.

A Labor Organization is an association of workers who have combined to protect or promote their interests by bargaining collectively with their employers to secure better working conditions, wages and similar benefits. Similar benefits include benefits traditionally provided by labor organizations such as strike, lockout, death, sickness, accident and other benefits. Labor organizations need not be recognized labor unions. These purposes may be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization.

Agricultural and Horticultural Organizations promote the interests of persons engaged in raising livestock, harvesting crops or aquatic resources, cultivating useful or ornamental plants or similar pursuits. Generally, agricultural and horticultural activities are those involved in the art or science of cultivating land, including preparing the soil, planting seeds, raising and harvesting crops or aquatic resources (including fishing and related pursuits), and rearing, feeding and managing livestock. 

501 (c) 6 Nonprofit – Business Leagues, Chambers of Commerce, Boards of Trade, Real Estate Boards and Professional Football Leagues

A Business League is an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit.

Chambers of commerce, trade associations and professional associations are business leagues. Rather than promoting one or more lines of business, their activities are directed to promoting the common economic interests of all commercial enterprises in a given trade community.

The term line of business generally refers either to an entire industry or to all components of an industry within a geographic area. It does not include a group composed of businesses that market a particular brand within an industry.

A Chamber of Commerce usually is composed of the merchants and traders of a city.

A Board of Trade often consists of persons engaged in similar lines of business. For example, a nonprofit organization formed to regulate the sale of a specified agricultural commodity to assure equal treatment of producers, warehouse workers and buyers is a board of trade.

Both chambers of commerce and boards of trade may engage in lobbying that is germane to accomplishing its exempt purpose without jeopardizing its exemption. However, if the organization engages in political and/or lobbying activities, it may need to give members notice of dues used for such activities, or be subject to a proxy tax (nondeductible lobbying and political expenses} on the amount of the expenditures.

Not Permitted

  • The net earnings of the organization may not inure to the benefit of any member.
  • It may not be organized for profit to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only enough income to be self-sustaining). 

Real Estate Boards consist of members interested in improving the business conditions in the real estate field. 

A Professional Football League exemption is determined by whether or not they administer a pension fund for football players.

501 (c) 6 Nonprofit – Social Clubs

A social club must be organized for pleasure, recreation and other similar purposes. A club may, however, in good faith limit its membership to members of a particular religion in order to further the teachings or principles of that religion and not to exclude individuals of a particular race or color.

An essential hallmark of a social club is personal contact, commingling and face-to-face fellowship. Members must share interests and have a common goal directed toward pleasure, recreation and similar purposes. Fellowship need not be present between each member and every other member, as long as it is a material part in the life of the organization. A statewide or nationwide organization that is made up of individual members, but divided into local groups, satisfies this requirement if fellowship is a material part of the life of each local group.

Membership in a social club must be limited. Evidence that a club’s facilities will be open to the general public (persons other than members, their dependents or guests) may cause denial of exemption. 

A social club must be supported by membership fees, dues and assessments. The organization may receive up to X percent of its gross receipts, including investment income, from sources outside of its membership without losing its tax-exempt status. No more than X percent of the amount may be derived from use of the club’s facilities or services by the general public or from other activities not furthering social or recreational purposes for members.

Not Permitted

  • The net earnings of the organization may not inure to the benefit of any member.
  • To discriminate against any person based on race, color, or religion.
  • Nonmember income from rental of property or facilities (nontraditional resources) in excess of the allowed limits.

501 (c) 8 Nonprofit – Fraternal Beneficiary Societies

501 (c) 10 Nonprofit – Domestic Fraternal Societies

While two fraternal societies are similar, they are also different enough to warrant their separate classifications. Both types of fraternal societies, orders, or associations must have a fraternal purpose. An organization has a fraternal purpose if membership is based on a common tie or the pursuit of a common object. The organization must also have a substantial program of fraternal activities.

Fraternal Beneficiary Societies must operate under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system. Operating under the lodge system requires, at a minimum, two active entities:  1) a parent organization; and 2) a subordinate (called a lodge, branch, or the like) chartered by the parent and largely self-governing.

It must provide for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents. An organization that provides benefits to some, but not all, of its members may qualify for exemption so long as most of the members are eligible for benefits, and criteria for excluding certain members are reasonable.

A Domestic Fraternal Society must operate under the lodge system. Operating under the lodge system requires, at a minimum, two active entities:  1) a parent organization; and 2) a subordinate organization (called a lodge, branch, or the like) chartered by the parent and largely self-governing. It must devote its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes.

Not Permitted – Domestic Fraternal Society

  • To provide for the payment of life, sick, accident, or other benefits to its members. The organization may arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status.
  • It must be a domestic organization, organized in the United States.

501 (c) 19 Nonprofit – War Veterans Organizations

War Veterans Organizations are required to meet specific requirements for their membership composition. See also 501 (c) 4 Nonprofit – Civic Leagues and Social Welfare Organizations: Veterans Organizations.

Wage and the Fair Labor Standards Act (FLSA)
https://www.dol.gov/agencies/whd/flsa

Salary Basis Requirement and the Part 541 Exemptions Under the Fair Labor Standards Act (FLSA)
https://www.dol.gov/agencies/whd/fact-sheets/17g-overtime-salary

U.S. Equal Employment Opportunity Commission (EEOC)
https://www.eeoc.gov/

Association of Leadership Programs
www.alpleaders.org/

 

Association of Junior Leagues
https://www.ajli.org/

National Center for Charitable Statistic (NCCS)
https://nccs.urban.org

Los Angeles County, California
Chapter 4.72 – TRANSIENT OCCUPANCY TAX

4.72.010 – Title of chapter provisions.

The ordinance codified in this chapter shall be known as, and may be cited as the “uniform occupancy tax ordinance.”

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 1 § 1, 1964.)

4.72.020 – Definitions.

Unless the context otherwise requires, the definitions in this section shall govern the construction of this chapter:

A.”Article” means an article of Ordinance 8607 as originally adopted, unless some other ordinance or statute is mentioned. B.”Board” means the board of supervisors of the county of Los Angeles. C. “County” means the county of Los Angeles. D. “Hotel” means any structure in the unincorporated territory of the county, or any portion of any such structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. E. “Occupancy” means the use or possession, or the right to the use or possession, of any room or rooms or portion thereof in any hotel for dwelling, lodging or sleeping purposes. F. “Operator” means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter, and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. G.” Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. H. “Rent” means the consideration charged, whether or not received, for the occupancy of space in a hotel, valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash credits and property and services of any kind or nature, without any deduction therefrom whatsoever. I. “Section” means a section of this chapter. J. “Shall” is mandatory and “may” is permissive. K.”Tax collector” means the tax collector of the county of Los Angeles. L.”Transient” means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing entered into within the first 30 days of the stay between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified in this chapter may be considered.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 1 §§ 7—19, 1964.)

4.72.030 – Interpretation of language.

A. Tenses. The present tense includes the past and future tenses. B. Genders. Each gender includes the other two genders.C. Number. The singular number includes the plural and the plural the singular.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 1 §§ 4—6, 1964.)

4.72.040 – Imposition of tax—Amount.

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of 12 percent of the rent charged by the operator. This tax constitutes a debt owed by the transient to the county which is extinguished only by payment to the operator or to the county.

(Ord. 2012-0041 § 1, 2012:  Ord. 98-0056 § 1, 1998:  Ord. 95-0050 § 1, 1995:  Ord. 90-0180 § 1, 1990:  Ord. 10202 § 1, 1971:  Ord. 9572 § 1, 1968:  Ord. 8607 Art. 2 § 21, 1964.)

4.72.050 – Payment.

The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If, for any reason the tax due is not paid to the operator of the hotel, the tax collector may require the transient to pay such tax directly to the tax collector.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 2 § 22, 1964.)

4.72.060 – Exemptions – Designated.

If a proper claim for exemption is made a tax shall not be imposed upon:

A. Any person as to whom, or any occupancy as to which, it is beyond the power of the county to impose the tax provided in this chapter; B. Any federal or state of California officer or employee, when on official business; C. Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. D. Emergency shelter referrals by Los Angeles County, County-affiliated, or State agencies, including – but not limited to, referrals from the Los Angeles County Department of Public Social Services, the Los Angeles County Department of Children and Family Services, the Los Angeles Homeless Services Authority, and the State Department of Corrections and Rehabilitation. E. Any Red Cross, Amtrak, US Postal Service, Federal Credit Union or Insurance Company employee on official government business.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 2 § 23, 1964.)

4.72.070 – Exemptions – Claim requirements.

The tax collector shall prepare and furnish to the operators of hotels who have registered, as required by Sections 4.72.100 through 4.72.120 of this chapter, forms by which transients may claim exemption from the payment of the tax. An exemption shall not be granted to any transient except upon a claim therefor made at the time rent is collected and under penalty of perjury upon the form supplied by the tax collector

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 2 § 24, 1964.)

4.72.080 – Collection – Operator’s duties.

Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. The operator of a hotel shall not advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 2 § 25, 1964.)

4.72.090 – Recordkeeping requirements.

Every operator liable for the collection and payment to the county of any tax imposed by this chapter shall keep and preserve, for not less than three years, all records which may be necessary to determine the amount of such tax for the collection of, and payment of, to the county he may be or may become liable. The tax collector may inspect these records at any reasonable time. The operator shall make such records available at any reasonable time requested by the tax collector.

(Ord. 2012-0041 § 1, 2012: Ord. 8607 Art. 2 § 26, 1964.)

4.72.100 – Operator—Registration required.

Within 30 days after the effective date of the ordinance codified in this chapter, or within 30 days after commencing business, whichever is later, each operator of any hotel renting occupancy to transients shall register the hotel with the tax collector. Upon such registration, the tax collector shall issue to such operator a “transient occupancy registration certificate.”

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 3 § 31, 1964.)

4.72.110 – Registration certificate—Posting.

The operator shall post, and at all times keep posted in a conspicuous place on the premises of the hotel, the transient occupancy registration certificate.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 3 § 32, 1964.)

4.72.120 – Registration certificate—Contents.

The transient occupancy certificate shall, among other things, state the following:  A.The name of the operator; B. The address of the hotel; C. The date upon which the certificate was issued; D. “This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance by registering with the Tax Collector for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Collector. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this county. This certificate does not constitute a permit.”

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 3 § 33, 1964.)

4.72.130 – Tax return required monthly.

Each operator, on or before the last day of the month following the close of the calendar quarter, or at the close of any other reporting period which may be established by the tax collector, shall make a return to the tax collector, on forms provided by him, of the total rents charged and received and the amount of tax collected for transient occupants.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 4 § 41, 1964.)

4.72.140 – Payment remitted with return.

At the time the return is filed, the operator shall remit the full amount of the tax collected to the tax collector. The tax collector may establish shorter, longer, or other reporting periods for any certificate holder if he deems it necessary or expedient in order to insure collection of the tax. The tax collector may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 4 § 42, 1964.)

4.72.150 – Tax held in trust.

Every operator shall hold in trust for the account of the county, until payment thereof is made to the tax collector, all taxes collected by such operator.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 4 § 43, 1964.)

4.72.160 – Late payment – Penalty.

Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10 percent of the amount of the unpaid tax in addition to the amount of the tax.

(Ord. 2012-0041 § 1, 2012:  Ord. 87-0046 § 1, 1987:  Ord. 8607 Art. 5 § 51, 1964.)

4.72.170 – Late payment—Continued delinquency penalty.

Any operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10 percent of the amount of unpaid tax, in addition to the amount of the tax and the 10-percent penalty first imposed.

(Ord. 2012-0041 § 1, 2012:  Ord. 87-0046 § 2, 1987:  Ord. 8607 Art. 5 § 52, 1964.)

4.72.180 – Nonpayment due to fraud – Penalty.

If the tax administrator determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in Sections 4.72.160 and 4.72.170.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 5 § 53, 1964.)

4.72.190 – Late payment – Interest imposed.

In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of one and one-half percent per month or fraction thereof on the amount of unpaid tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

(Ord. 2012-0041 § 1, 2012:  Ord. 87-0046 § 3, 1987:  Ord. 8607 Art. 5 § 54, 1964.)

4.72.200 – Penalties merged with tax.

Every penalty imposed and such interest as accrues under the provisions of this chapter shall become a part of the tax herein required to be paid.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 5 § 55 1964.)

4.72.210 – Failure to collect and report tax—Amount determined by tax collector.

If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of said tax or any portion thereof required by this chapter, the tax collector shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the tax collector shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has filed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against the operator the tax, interest and penalties provided for by this chapter.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 5 § 56, 1964.)

4.72.220 – Determination by tax collector – Notice required.

If the tax collector makes a determination pursuant to Sections 4.72.160 through 4.72.240 of this chapter, he shall give a notice of the amount so assessed, either by serving such notice personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at his last known place of business.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 5 § 57, 1964.)

4.72.230 – Application for hearing on amount assessed.

Within 10 days after the serving upon any operator of such notice, such operator may apply in writing to the tax collector for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax collector shall become final and conclusive and immediately due and payable.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 5 § 58, 1964.)

4.72.240 – Hearing on amount assessed – Notice.

If such application is made, the tax collector shall give not less than five days’ written notice in the manner prescribed in this chapter to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing, the tax collector shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in Sections 4.72.250 through 4.72.300 of this chapter.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 5 § 59, 1964.)

4.72.250 – Appeal from tax collector determination – Filing.

Any operator deeming himself aggrieved by any decision of the tax collector with respect to the amount of the tax, interest and penalties, if any, may appeal to the board by filing a notice of appeal with the clerk of the board within 15 days of the serving or mailing of the determination of the tax due.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 6 § 61, 1964.)

4.72.260 – Appeal hearing – Notice.

Upon the filing of a notice of appeal, the board shall fix a time and place for hearing such appeal and the clerk of the board shall give not less than five days’ notice in writing, either personally or by United States mail, postage prepaid.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 6 § 62, 1964.)

4.72.270 – Appeal hearing – Appointment of referee.

The board may appoint a referee to take testimony at any hearing provided for in Sections 4.72.250 through 4.72.300 of this chapter, and to report his findings and recommendations to the board. Neither the tax collector nor any officer or employee in the office of the tax collector may be appointed referee.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 6 § 63, 1964.)

4.72.280 – Appeal hearing – Compensation of referee.

If the board appoints a county officer or county employee to act as referee, he shall serve as such without any additional compensation. All time spent as a referee shall be considered as time spent by such officer or employee in performing the duties of his position.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 6 § 64, 1964.)

4.72.290 – Appeal hearing – Conduct.

At the time set for the hearing, or at the date to which the hearing may be continued by the board or referee, the board or referee shall hear the appellant and any other competent witnesses and decide whether the determination of the tax collector was correct or not, and if not what tax, interest or penalties, if any, are due to the county from the appellant. The board or referee may place any witnesses, including the appellant, under oath.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 6 § 65, 1964.)

4.72.300 – Appeal hearing – Final determination.

The board shall determine from the evidence or from the report of the referee, what tax, interest or penalties, if any, are due to the county from the appellant. This decision shall be final and conclusive. The clerk of the board shall serve a copy of the decision upon the appellant as provided in Section 4.72.260. Any amount due shall be immediately due and payable upon the service of the said notice.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 6 § 66, 1964.)

4.72.310 – Refunds – Claim filing requirements.

Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the county under this chapter, the operator so paying may have such amount applied to subsequent taxes due, or it may be refunded as provided in Sections 4.72.310 through 4.72.350 of this chapter if, within three years after the date of payment, the operator files with the tax collector in writing a claim therefor. In such claim the operator shall state, under penalty of perjury, the specific grounds and specific facts upon which the claim is founded. The claims shall be on forms furnished by the tax collector.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 7 § 71, 1964.)

4.72.320 – Refunds – Credited to operator when.

An operator may take as credit against subsequent taxes the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established in a manner prescribed by the tax collector that the person from whom the tax was collected was not a transient and the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 7 § 72, 1964.)

4.72.330 – Refunds – Paid to operator when.

When an operator establishes a right to a credit as provided in Sections 4.72.310 through 4.72.350 of this chapter and also shows to the satisfaction of the tax collector either that he no longer is operating a hotel in the unincorporated territory of the county or will cease such operation before the credit can be applied, and files a proper claim therefor, in lieu of such credit the county shall refund to such operator the amount overpaid, paid more than once or erroneously or illegally collected or received.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 7 § 73, 1964.)

4.72.340 – Refunds – Paid to guests when.

A transient or other guest of a hotel may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the county by filing a claim in the manner provided in Section 4.72.310, if the tax was paid by the transient or other guest directly to the tax collector, or if the transient or other guest has paid the tax to the operator, and establishes to the satisfaction of the tax collector that the transient or other guest has been unable to obtain a refund from the operator who collected the tax.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 7 § 74, 1964.)

4.72.350 – Refunds – Written records required.

A refund shall not be paid pursuant to Sections 4.72.310 through 4.72.350 of this chapter unless the claimant establishes his right thereto by written records showing that he is entitled thereto.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 7 § 75, 1964.)

4.72.360 – Tax deemed debt to county.

Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the county.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 8 § 81, 1964.)

4.72.370 – Collected tax deemed debt by operator.

Any tax collected from a transient by an operator pursuant to the provisions of this chapter which has not been paid to the county shall be deemed a debt owed by the operator to the county.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 8 § 82, 1964.)

4.72.380 – Actions to collect authorized when.

The tax collector, in the name of the county of Los Angeles, as plaintiff, may bring suit for the recovery of any tax, interest or penalty due to the county pursuant to the provisions of this chapter.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 8 § 83, 1964.)

4.72.390 – Acts deemed misdemeanors designated.

Every person is guilty of a misdemeanor who:

A. Fails or refuses to register as required by this chapter; B. Fails or refuses to furnish any return required to be made, or fails or refuses to furnish a supplemental return or other data required by the tax collector; C.Renders a false or fraudulent return; D.If required by this chapter to make, render, sign or verify any report or claim, makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due; E.Collects the tax due pursuant to this chapter from any transient and fails to pay the same to the county; F. Violates in any way any other provision of this chapter.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 9 § 91, 1964.)

4.72.400 – Violation – Penalty.

Violation of any provisions of this chapter is punishable by a fine of not more than $500.00 or by imprisonment in the County Jail for not more than six months, or by both such fine and imprisonment.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 9 § 92, 1964.)

4.72.410 – Reference to chapter or statutes.

Whenever any reference is made to any portion of the ordinance codified in this chapter or of any other ordinance, or to any statute, such reference shall apply to all amendments and additions thereto now or hereafter made.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 1 § 2, 1964.)

4.72.420 – Severability.

If any provision of this ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional, the remaining provisions shall not be affected, but shall remain in full force and effect, and to this end the provisions of this ordinance are severable.

(Ord. 2012-0041 § 1, 2012:  Ord. 8607 Art. 1 § 3, 1964.)

4.72.430 – Ratification of Prior Tax.

The voters of the county of Los Angeles hereby ratify and approve the past collection of the “uniform occupancy tax ordinance” under Chapter 4.72 as amended by Ordinance No. 90-0180, which was adopted by the Los Angeles County Board of Supervisors on December 18, 1990.

(Ord. 2012-0041 § 1, 2012.)

House and Senate Legislative Bills

Sanford NC, located in North Carolina’s smallest county, Lee County.

https://www.ncleg.gov/Sessions/2017/Bills/House/PDF/H143v0.pdf

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017

HD HOUSE BILL DRH40041-MCx-42 (01/31)

Short Title:  Sanford Occupancy Tax. (Local)

AN ACT TO AUTHORIZE THE CITY OF SANFORD TO LEVY AN OCCUPANCY TAX.

The General Assembly of North Carolina enacts:

SECTION 1. Occupancy tax. – (a) Authorization and Scope. – The City Council of the City of Sanford may levy a room occupancy tax of up to three percent (3%) of the gross receipts derived from the rental of an accommodation within the city 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.

SECTION 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 apply to a tax levied under this section.

SECTION 1.(c) Distribution and Use of Tax Revenue. – The City of Sanford shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Sanford Tourism Development Authority. The Authority shall use the funds remitted to it under this subsection to promote travel and tourism in the City of Sanford.

The following definitions apply in this section:

(1) Net proceeds. – Gross proceeds less the cost to the city 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 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.

SECTION 1.(d) Tourism Development Authority. – Appointment and Membership. –

When the City Council adopts a resolution levying a room occupancy tax under this section, it shall also adopt a resolution creating the Sanford 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 city, and at least one-half of the members shall be individuals who are currently active in the promotion of travel and tourism in the city. The City Council 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 officer for the City of Sanford shall be the ex officio finance officer of the Authority.

SECTION 1.(e) Duties. – The Authority shall expend the net proceeds of the tax levied under this section for the purpose provided in subsection (c) of this section. The Authority shall promote travel, tourism, and conventions in the city and sponsor tourist-related events and activities in the city.

SECTION 1.(f) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Sanford City Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the City Council may require.

SECTION 2. G.S. 160A-215(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, Lake Santeetlah, Lenoir, Lexington, Lincolnton, Lowell, Lumberton, Monroe, Mount Airy, Mount Holly, Reidsville, Roanoke Rapids, Salisbury, Sanford, Shelby, Statesville, Washington, and Wilmington, to the Towns of Ahoskie, Beech Mountain, Benson, Bermuda Run, Blowing Rock, Boiling Springs, Boone, Burgaw, Carolina Beach, Carrboro, Cooleemee, Cramerton, Dallas, Dobson, Elkin, Fontana Dam, Franklin, Grover, Hillsborough, Jonesville, Kenly, Kure Beach, Leland, McAdenville, Mocksville, Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, Robbinsville, Selma, Smithfield, St. Pauls, Swansboro, Troutman, Tryon, West Jefferson, Wilkesboro, Wrightsville Beach, Yadkinville, and Yanceyville, and to the municipalities in Avery and Brunswick Counties.”

SECTION 3. This act is effective when it becomes law.

https://www.ncleg.gov/Sessions/2017/Bills/Senate/PDF/S552v4.pdf

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017
SESSION LAW 2017-202

SENATE BILL 552
*S552-v-4*

AN ACT TO MAKE VARIOUS OCCUPANCY TAX CHANGES AFFECTING THE CITY

OF SANFORD, The General Assembly of North Carolina enacts:

PART I. SANFORD OCCUPANCY TAX

SECTION 1.1. Occupancy Tax. – (a) Authorization and Scope. – The Sanford City Council 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 city 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.

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 apply to a tax levied under this section.

SECTION 1.1.(c) Distribution and Use of Tax Revenue. – Sanford shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Sanford Tourism Development Authority. The Authority shall use two-thirds of the funds remitted to it under this subsection to promote travel and tourism in Sanford and shall use the remaining one-third of the funds remitted to it under this subsection for the operation, maintenance, promotion, and renovation of the Dennis A. Wicker Civic Center, an activity so closely related to travel and tourism in Sanford as to be credited with helping to generate as much as eighty percent (80%) of that city’s tourism-related revenues. Any funds dedicated under this subsection for the Dennis A. Wicker Civic Center that are not spent or obligated by the close of a fiscal year may be used by the Authority for the promotion of travel and tourism in Sanford.

The following definitions apply in this subsection:

(1) Net proceeds. – Gross proceeds less the cost to the city 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 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 the listed activities.

SECTION 1.2. Sanford Tourism Development Authority. – (a) Appointment and Membership. –

When the Sanford City Council adopts a resolution levying a room occupancy tax under this part, it shall also adopt a resolution creating a city 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 must be individuals who are affiliated with businesses that collect the tax in the city, and at least one-half of the members must be individuals who are currently active in the promotion of travel and tourism in the city. The city council 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 Officer for Sanford shall be the ex officio finance officer of the Authority.

SECTION 1.2.(b) Duties. – The Authority shall expend the net proceeds of the tax levied under this part for the purposes provided in this part. The Authority shall promote travel, tourism, and conventions in the city and sponsor tourist-related events and activities in the city.

SECTION 1.2.(c) Reports. – The Authority shall report quarterly and at the close of the fiscal year to the Sanford City Council on its receipts and expenditures for the preceding quarter and for the year in such detail as the city council may require.

(Various other changes to occupancy taxes in other destinations have been removed)

PART IX. ADMINISTRATIVE PROVISIONS

SECTION 9.1.(a) G.S. 160A-215(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, Sanford, Shelby, Statesville, Washington, and Wilmington, to the Towns of Ahoskie, Beech Mountain, Benson, Bermuda Run, Blowing Rock, Boiling Springs, Boone, Burgaw, Carolina Beach, Carrboro, Cooleemee, Cramerton, Dallas, Dobson, Elkin, Fontana Dam, Franklin, Grover, Hillsborough, Jonesville, Kenly, Kure Beach, Leland, McAdenville, Mocksville, Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo, Robbinsville, Selma, Smithfield, St. Pauls, Swansboro, Troutman, Tryon, West Jefferson, Wilkesboro, Wrightsville Beach, Yadkinville, and Yanceyville, and to the municipalities in Avery and Brunswick Counties.Counties, and to Saluda District D.”

SECTION 9.1.(b) G.S. 153A-155(g) reads as rewritten:

“(g) Applicability. – Subsection (c) of this section applies to all counties and county districts 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 Alleghany, Anson, Brunswick, Buncombe, Burke, Cabarrus, Camden, Carteret, Caswell, Chatham, Cherokee, Chowan, Clay, Craven, Cumberland, Currituck, Dare, Davie, Duplin, Durham, Edgecombe, Forsyth, Franklin, Graham, Granville, Halifax, Haywood, Henderson, Jackson, Madison, Martin, McDowell, Montgomery, Moore, Nash, New Hanover, Northampton, Pasquotank, Pender, Perquimans, Person, Randolph, Richmond, Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Swain, Transylvania, Tyrrell, Vance, Washington, Wayne, and Wilson Counties, to Harnett County District H, to New Hanover County District U, to Surry County District S, to Watauga County District U, to Wilkes County District K, to Yadkin County District Y, and to the Township of Averasboro in Harnett County and the Ocracoke Township Taxing District.”

PART X. EFFECTIVE DATE

SECTION 10.1. Except as otherwise provided, this act is effective when it becomes law.

In the General Assembly read three times and ratified this the 3rd day of August, 2017.

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