(a) Application of Proceeds. The net proceeds of the tax collected and remitted to the taxing authority pursuant to this article shall be deposited into the General Revenue Fund of the Town, and after appropriation thereof shall be expended only as in subsections (b) and (c) hereof.
(b) Required Expenditures. At least fifty percent (50%) of the net revenue received during the fiscal year by the Town pursuant to this article shall be appropriated to a convention and visitors bureau, if one is established in the Town and if there is none, and such bureau is located within Fayette County, then the percentage appropriation required by this subsection shall be appropriated to such convention and visitors bureau located within Fayette County. If there is no such convention and visitors bureau located in the Town or within Fayette County, then the percentage appropriation required by this subsection shall be appropriated as follows:
(1) Any hotel located within the Town may apply for an appropriation to such hotel of a portion of the tax authorized by this article and collected by such hotel and remitted to the Town for uses directly related to the promotion of tourism and travel, including advertising, salaries, travel, office expenses, publications and similar expenses. The portion of such tax allocable to such hotel shall not exceed seventy-five percent (75%) of that portion of such tax collected and remitted by such hotel, which is required to be expended pursuant to this subsection; provided, that prior to appropriating any moneys to such hotel, the Town shall require the submission of and give approval to a budget setting forth the proposed uses of such moneys.
(2) The balance of net revenue required to be expended by this subsection shall be appropriated to the Regional Travel Council serving Fayette County.
(c) Permissible Expenditures. After making the appropriation required by subsection (b) hereof, the remaining portion of the net revenues receivable during the fiscal year by the Town, pursuant to this article, may be expended for one or more of the purposes set forth in this subsection, but for no other purpose. The purposes for which expenditures may be made pursuant to this subsection are as follows:
(1) The planning, construction, reconstruction, establishment, acquisition, improvement, renovation, extension, enlargement, equipment, maintenance, repair and operation of publicly-owned convention facilities, including, but not limited to, arenas, auditoriums, civic centers and convention centers;
(2) The payment of principal or interest or both on revenue bonds issued to finance such convention facilities;
(3) The promotion of conventions;
(4) The construction or maintenance of public parks, tourist information centers and recreation facilities (including land acquisition); or
(5) The promotion of the arts.
(d) Definitions. For the purposes of this section, the following terms are defined:
(1) “Convention and visitors bureau” and “visitors and convention bureau” are interchangeable and mean the Fayetteville Convention and Visitors Bureau.
(2) “Convention center” means a convention facility owned by the Town or other public entity or instrumentality and shall include all facilities, including armories, commercial, office, community service and parking facilities, and publicly-owned facilities constructed or used for the accommodation and entertainment of tourists and visitors, constructed in conjunction with the convention center and forming reasonable appurtenances thereto.
(3) “Fiscal year” means the year beginning July 1 and ending June 30 of the next calendar year.
(4) “Net proceeds” means the gross amount of tax collected less the amount of tax lawfully refunded.
(5) “Promotion of the arts” means activity to promote public appreciation and interest in one or more of the arts. It includes the promotion of music of all types, the dramatic arts, dancing, painting and the creative arts through shows, exhibits, festivals, concerts, musicals and plays.
(6) “Recreational facilities” means any public park, parkway, playground, public recreation center, athletic field, sports arena, stadium, skating rink or arena, golf course, tennis courts, and other park and recreation facilities, whether of a like or different nature, that are owned by the Town.