(A) Levy of tax. A tax is hereby imposed and levied in an amount equal to 1-1/2% of the gross receipts derived from the short-term lease or rental of vehicles at retail to the general public.
(B) Collection of the tax. Every person engaged in the business of the short-term lease or rental of vehicles at retail to the general public shall collect at the time of the lease or rental the tax herein levied, place the tax so collected in a segregated account, and thereafter remit such tax to the Tax Collector in accordance with the provisions of this section. The taxpayer shall include a provision in each retail short-term lease or rental agreement stating that the percentage amount enacted by this section of the total lease or rental price, excluding sales tax, is being charged as a tax on gross receipts. The amount of the tax shall be stated separately from the lease or rental and shown separately on the taxpayer’s records. The tax shall be paid by the customer to the taxpayer as trustee for an account of the city. The taxpayer shall be liable for the collection thereof and for its payment to the Tax Collector and the taxpayer’s failure to charge or to collect said tax from the customer shall not affect such liability.
(C) Report and payment of tax.
(1) Taxes levied under this section are due and payable when a return is required to be filed.
(2) Every taxpayer shall, within the time specified, submit a return to the Tax Collector on the form prescribed by the Tax Collector. A return must be signed by the taxpayer or the taxpayer’s agent. Returns of taxpayers are due to the Tax Collector each month on or before the fifteenth day of the month following the month in which the tax accrues.
(3) As provided in G.S. § 160A-208.1, a return shall not be considered a public record and information contained in a return may be disclosed only in accordance therewith.
(D) Taxpayer to keep records.
(1) The taxpayer shall keep and preserve suitable records of the gross receipts received by such taxpayer in the conduct of business and such other books or accounts as may be necessary to determine the amount of the tax for which such taxpayer is liable under the provisions of this section.
(2) It shall be the duty of the taxpayer to keep and preserve for a period of three years all such records of gross receipts herein described shall be open for examination at all reasonable hours during the day by the Tax Collector or his or her duly authorized agent.
(E) Tax collector to provide forms. The Tax Collector shall design, prepare, print and make available to all taxpayers operating within the municipal boundaries of the city, forms and instructions for filing returns to insure a full collection of and an accounting for taxes due. The failure of any taxpayer to obtain or receive forms shall not relieve such taxpayer from the payment of the tax at the time and in the manner provided.
(F) Situs. The transaction giving rise to the tax herein levied shall be deemed to have occurred at the location of the entity from which the customer takes deliver of the vehicle.
(G.S. § 160A-215.1(b))
(G) Penalties and remedies.
(1) The provisions with respect to remedies and penalties applicable to G.S. Ch. 105, Subch. VII, Local Government Sales and Use Tax, as contained in Art. 5 and Art. 9, Subch. 1, thereof, shall be applicable in like manner to the tax authorization to be levied and collected under this section, to the extent that the same are not inconsistent with the provisions hereof.
(2) The governing body of the city may exercise any power the Secretary of Revenue may exercise in collecting sales and use taxes.
(3) Penalties and remedies, including interest shall be applied at the rate set by the county.
(G.S. § 160A-215.1(f))
(H) Administration. In addition to the provisions herein, the levy and collection of the taxes herein imposed shall be otherwise administered in the same manner as the sales and use tax as provided by G.S. Ch. 105, Art. 5, Subch. 1.
(G.S. § 160A-215.1(d))
(I) Authority. This section is enacted pursuant to the provisions of G.S. § 160A-215.1.
(2005 Code, § 46-30) (Ord. passed 6-27-2000)
Statutory reference:
Gross receipts tax by cities on short-term leases or rentals, see G.S. § 160A-215.1