Sec. 7. Use of proceeds of additional occupancy tax and prepared food and beverage tax.
   Dare County shall remit the net proceeds of the taxes levied under Sections 3 and 4 of this act on a monthly basis to the Dare County Tourism Board. The tourism board may deduct the cost of its annual audit from the proceeds emitted to it. The tourism board shall use the remainder of the proceeds as follows:
   (1)   Seventy-five percent (75%) shall be used for the cost of administration and to promote tourism. The tourism board's expenditures may include (i) advertising to promote less-than-peak-season events and programs, (ii) marketing research, (iii) a mail and telephone inquiry response program, and (iv) welcoming and hospitality functions.
   (2)   Twenty-five percent (25%) shall be used for services or programs needed due to the impact of tourism on the county.
   The tourism board may expend funds only for public purposes. The tourism board shall report quarterly and at the close of the fiscal year to the board of commissioners on its receipts and expenditures for the preceding quarter and for the year in such detail as the board may require. The tourism board may not use the proceeds distributed to it to purchase real property or for the purposes set out in subdivision (2) above without prior approval by the Dare County board of commissioners.
(Sess. Laws 1991, ch. 177, § 7.)