AGENDA

SWANSBORO TOURISM DEVELOPMENT AUTHORITY

Thursday ~ January 17, 2019 at 2:30 pm

TOWN HALL - COMMUNITY ROOM

SPECIAL MEETING AGENDA

A. Call to Order Randy Swanson, Chair

B. Approval of Minutes July 12, 2018

C. Reports Financial Report Sonia Johnson

D. Old Business

Vacation Rental Booking Sites Sonia Johnson

E. New Business 1. June 30, 2018 Audited Financial Statements Sonia Johnson 2. Establish the 2019 Meeting Schedule Sonia Johnson 3. Advertising Report/Discussion/Direction Mike McHugh

F. Board Comments

G. Adjournment

Enclosures: Draft Minutes-July 12 Meeting Financial Summary Analysis FY 2018/2019 Analysis of Revenue/Expenses Regulations of Occupancy Tax Basics June 30, 2018 Audited Financial Statements Proposed 2019 Meeting Schedule Advertising Report/Discussion/Direction

Next Scheduled Meeting: Thursday, April 12, 2019 at 2:30 pm

MINUTES

SWANSBORO TOURISM DEVELOPMENT AUTHORITY

Special Meeting Members Present Members Absent

Thursday, July 12, 2018 Randy Swanson Hal Silver Junior Freeman

Linda Thornley

Jack Harnatkiewicz

Sherry Hancock

Randy Swanson called the meeting to order at 2:30 pm and a quorum was verified.

Approval of Minutes

On a motion by Junior Freeman the April 19, 2018 and the May 21, 2018 meeting

minutes were approved by unanimous vote.

Financial Report

The following report was submitted for review by Sonia Johnson, Finance Director. See

attachment #1 and 2. Junior Freeman made a motion to accept the Financial Report as submitted,

the motion was approved by unanimous vote.

Old Business

Vacation Rental Booking Sites-Airbnb & VRBO -Draft Letter See attachment #3

Sonia Johnson submitted a draft of a letter for review and future discussion and input. The intention is to send it to the property owners notifying them that they are required

to file room occupancy tax returns and remittances to the Town of Swansboro no later

than the 20th of the following month (following a rental) to avoid penalties and interest.

New Business

Budget Amendment #2019-1

Sonia Johnson, Finance Director presented: In FY 17/18, $7,130.52 was awarded to the

Swansboro Historical Association for the purchase and installation of blinds and track lighting. A

request for reimbursement of $1,428.77 was submitted; however, because all encumbrances

outstanding at year-end for unfulfilled obligations of the current year budget are re-established in

the following year and expended from that year’s appropriations, $5,701.75 needs to be re-

appropriated from fund balance for Grants-Capital expense. Source of Funds: Appropriated Fund

Balance. Linda Thornley made a motion to approve Budget Amendment #2019-1, it was

unanimously approved.

Funding Request-Rotary District Conference ($2,000)

April Clark, Rotary District Governor and Dr. Tom Bell, Event Organizer were present to give an

overview of their event and to answer questions. The District Conference for the Rotary Clubs of

the Southeast will be held in Swansboro on April 25th through April 28th, 2019. They are

expecting 200 to 250 participants. They are requesting $2,000 to offset the cost of hosting the

event. See attachment #4. Linda Thornley made a motion to approve $2,000 out of Capitol, it

was unanimously approved.

Funding Request-Historical Association ($1,855)

At the April 19, 2018 meeting the TDA approved $7,130.52 for blinds and track lighting for the

Heritage Museum. $1,753.72 was budgeted for the blinds and $750 for their installation. The

blinds came in at $1,428.77, $394.95 under budget. They are requesting that that money assist in

the cost of installation for the track lighting. $2,947.00 was budgeted for the track lighting and

$1680 for their installation. The price for the light fixtures has increased to $4,529.50, leaving

approximately $100 of the $1680 needed for installation. The Finance Director explained that the

$394.95 could be used to assist with the short fall, as it has already been funded. On July 14,

2018 they have a tagsale planned and are hoping to make enough for the remaining balance on

the installation of the light fixtures. Additionally, they are requesting $500 to update and

maintenance of the Swansboro Historical Association website, which has been an ongoing

project. It was suggested by the Board that they find the money within their existing funds to

maintain and update their website as $300 had previously been committed and a motion was

made by Randy Swanson to table their request for the remaining funds until the October 11, 2018

meeting to see what funds they were able to generate from their sale. The motion to table until

the next meeting was approved unanimously.

Advertising Report

There was no advertising report given. Susan Cummings from the Chamber of Commerce was

present and will be meeting with Sonia to go over the advertising commitments and

requirements.

Public Comments There was no public comment.

Board Comments A submission cutoff date to have an item added to the TDA agenda was discussed and agreed

upon as being beneficial. Junior Freeman made a motion to set that cutoff date on Monday the

week prior to the meeting date, the motion was approved by unanimous vote.

Adjournment

The meeting adjourned at 3:42 pm.

SWANSBORO TOURISM DEVELOPMENT AUTHORITY

FINANCIAL SUMMARY ANALYSIS

FY 2018/2019

BUDGET BUDGET BUDGET ACTUAL

2018-2019 AMENDMENT REVISIONS 07/1/18-12/31/18

39,074.15$

Revenue:

Acct #

70-390-0950 Occupancy Tax - Transferred from Gen Fund 64,000.00$ 47,671.59$ 47,671.59$

70-399-0991 Fund Balance Appropriation 47,671.59$ -$

64,000.00$ 47,671.59$ 111,671.59$ 47,671.59$

Expenditures:

Acct #

70-800-1910 Services - Auditor 1,800.00$ 1,800.00$ 1,800.00$

70-800-3910 Advertising/Promotions: -$

Chamber - Visitor Ctr Management / $2300 Qtr 9,600.00$ 9,600.00$ 3,450.66$

General advertising ($5050/qtr) 24,566.67$ 24,566.67$ 7,078.90$

Liz Honeycutt Advetising 5,000.00$ 5,000.00$ 2,490.00$

70-800-2995 Administrative Services 3,600.00$ 3,600.00$ 1,800.00$

70-800-2010 Supplies 450.00$ 450.00$ 51.15$

70-800-3100 Travel / Conference 2,000.00$ 2,000.00$ -$

70-800-4540 Insurance 300.00$ 300.00$ 200.00$

70-800-4910 Dues & Subscriptions 350.00$ 350.00$ 350.00$

70-800-5000 Capital Outlay -$ -$ -$

70-800-7910 Tourism-Related Expenses (Grants) - Awarded (Marketing) -$ -$ -$

70-800-7920 Tourism-Related Expenses (Grants) - Awarded (Capital) 21,333.33$ (5,000.00)$ 16,333.33$ -$

64,000.00$ -$ 64,000.00$ 17,220.71$

17,220.71$

ACTUAL CASH BALANCE @ 12/31/18 69,525.03$

AVAILABLE FUND BALANCE @ 12/31/18 69,525.03$

Web Design 949.40$

Guest Quest 422.00$

Our State 2,300.00$

Sight & Sound Media 500.00$

Carolina Publishing & Assoc 1,995.00$

Waterway Guide (750.00)$ 3,195.00$ Co-Op Checks

Saltwater Grill, Southern

Coastal Realty, Proctor &

Proctor 750.00$

Bluewater Real Estate 855.00$

Barefoot Guide 807.50$

Total General Advertising 7,078.90$ 750.00$

Beginning FB 39,074.15$

Revenues 47,671.59$

Expenditures 17,220.71$

Cash balance 69,525.03$

Available FB 69,525.03$

Fund Balance @ 6-30-2018

07/01/2018-12/31/18

SWANSBORO TOURISM DEVELOPMENT AUTHORITY

ANALYSIS OF REVENUE/ EXPENSES

APPLICATION OF 2/3 AND 1/3 RESTRICTIONS

PERIOD TOTAL

2/3-Promote

Travel and

Tourism plus

administrative

1/3-Tourism-

Related Capital

Expenditures

FYE 2011/2012 44,928.62$ 29,952.41$ 14,976.21$

FYE 2012/2013 71,128.06$ 47,418.70$ 23,709.36$

FYE 2013/2014 60,300.68$ 40,200.45$ 20,100.23$

FYE 2014/2015 59,772.79$ 39,848.53$ 19,924.26$

FYE 2015/2016 56,925.03$ 37,950.02$ 18,975.01$

FYE 2016/2017 55,240.37$ 36,826.91$ 18,413.46$

FYE 2017/2018 66,319.97$ 44,213.31$ 22,106.66$

FYE 2018/2019 47,671.59$ 31,781.06$ 15,890.53$

TOTALS 308,191.40$ 154,095.71$

PERIOD TOTAL

Travel and

Tourism

Expenditures plus

administrative

Tourism-Related

Capital

Expenditures

FYE 2011/2012 4,415.12$ 4,415.12$ -$

FYE 2012/2013 38,523.85$ 38,523.85$ -$

FYE 2013/2014 87,610.72$ 62,610.72$ 25,000.00$

FYE 2014/2015 59,297.48$ 53,013.10$ 6,284.38$

FYE 2015/2016 56,561.77$ 41,944.77$ 14,617.00$

FYE 2016/2017 65,122.90$ 39,632.90$ 25,490.00$

FYE 2017/2018 64,009.53$ 34,575.76$ 29,433.77$

FYE 2018/2019 17,220.71$ 12,220.71$ 5,000.00$

286,936.93$ 105,825.15$

AVAILABLE FUNDS AS OF 12/31/18 21,254.47$ 48,270.56$

69,525.03$

REVENUES

LESS: EXPENSES

07/01/18-12/31/18

Regulation of Short Term Rentals and Occupancy Tax Basics

GS 105-164.4F

Accommodation = “A hotel room, a motel room, a residence, a cottage, or a similar lodging facility for occupancy by an individual.”

Only 3 exceptions: 1. Private residence < 15 days per year and NOT listed with an agent2. Accommodation rented to same person for >= 90 days3. Accommodation included in tuition/fee for school or camp

Who is liable for OT?

A retailer who is required to remit to the Department of Revenue the State sales tax imposed by G.S. 105-164.4(a)(3) on accommodations is required to remit a room occupancy tax to the taxing city/county. GS 153A-155(c); GS 160A-215(c)

G.S. 105-164.4(a)(3) points us to G.S. 105-164.4F

Who is responsible for OTs?

105-164.4F. Accommodation rentals.Rental Agent. - A person who, by written contract, agrees to be the rental agent for the provider of an accommodation is considered a retailer under this Article and is liable for the tax imposed by this section. The liability of a rental agent for the tax imposed by this section relieves the provider of the accommodation from liability.

Facilitator Transactions. . . . A facilitator that does not send the retailer the tax due on the sales price is liable for the amount of tax the facilitator fails to send. . . . A retailer is not liable for tax due but not received from a facilitator.

Responsibilities? Rental Agent: liable for all taxes on rentalFacilitator: liable for taxes collected from tenant

Taxes that should have been collected but were not?

Taxable Charges

Credit card fees or reservation/service feesDamage waiver fees / security deposits (?)Maid/cleaning feesResort feesEarly arrival/late departure feesExtra person charges or crib/rollaway bed chargesLinen fees“Peace of mind” fees (similar to insurance but provided by hotel or rental agency rather than third-party carrier)Pet fees

The Room Occupancy Tax Report and total amount due must be remitted by check or money order and in the office of the Town of Swansboro’s Finance Director by the 20th day following the last day of the month for which the Tax was collected.

So many choices! (over 50)

Use of Proceeds: Local Act Controls

Common ProvisionsEstablish a Tourism Development Authority (TDA)

Distribute OT proceeds to the TDA(3% collection fee to city/county)

Permitted Uses of OT Revenue:▪“promote travel and tourism”▪“tourism-related expenditures”

OT returns and payment records NOT public

TOWN OF SWANSBORO

ROOM OCCUPANCY TAX INFORMATION

CONTACT INFORMATION FACILITY

OWNER INFORMATION

IN CASE OF QUESTIONS ABOUT THE OCCUPANCY TAX FORM SUBMISSION, WHOM SHOULD THE TOWN CALL:

MAILING ADDRESS:

TELEPHONE: EMAIL:

PERSON OR OFFICE RESPONSIBLE FOR THE OCCUPANCY TAX FORM SUBMISSION:

MAILING ADDRESS:

TELEPHONE: EMAIL:

PERSON WHO SHOULD BE CONTACTED ABOUT ACTIVITIES OF THE SWANSBORO TOURISM DEVELOPMENT AUTHORITY:

MAILING ADDRESS:

TELEPHONE: EMAIL:

Town of Swansboro 601 W. Corbett Ave Swansboro, NC 28584

910-326-4428 (phone) 910-326-3101 (fax)

Room Occupancy Tax Report (To be filed and paid within 20 days from the last day of each month)

Business Name and Mailing Address

Social Security or Federal ID: For the Month of:

Street Address of Property: Telephone Number:

Computation of Room Occupancy Tax:

1. Gross room rental receipts (excluding sales tax) --------------------------------- 2. Less Section 27 Exempt Receipts------------------------------------------------------- 3. Less Section 37 US Government Receipts-------------------------------------------- 4. Net Retail Receipts (Line 1 minus 2 & 3)--------------------------------------------- 5. Total Occupancy Tax (3% of Line 4)---------------------------------------------------- 6. Add Penalty---------------------------------------------------------------------------------- 7. Add Additional Tax (5% per month of Past Due Tax)------------------------------ 8. Total Amount Due and Remitted (Line 5 + Line 6 + Line 7)----------------------

Certification of Taxpayer: This is to certify that this report, including all attachments, has been examined by me, and is, to the best of my knowledge and belief, a true and complete report made in good faith covering the month indicated above and that same is in accordance with the books and records of the reporting taxpayer.

____________________________________________________________________ _______________ Authorized Signature Printed Name Date

Instructions: 1) Enter gross room rental receipts derived from the rental of any room, lodging, or similar accommodation furnished by

a hotel, motel, Inn, or similar place within the corporate limits of the Town of Swansboro that is subject to sales tax imposed by the State of North Carolina under G.S. 105-164.4(a)(3).

2) Enter the total of Exempt Receipts as provided for in the NC Department of Revenue Sales & Use Tax Technical Bulletin Section 27. This includes rentals to the person, not the same company, for 90 continuous days. For refunds of tax collected previously for the rental to the same person, contact the Town of Swansboro.

3) Enter the total of Exempt Receipts as provided for in the NC Department of Revenue Sales & Use Tax Technical Bulletin Section 37, which details sales to US Government. Sales must be documented to have been paid for as provided for in the Bulletin.

4) Enter total of Line 1 less Lines 2 & 3. 5) Multiply Line 4 by 3%. 6) If the tax is not paid by the due date, add a penalty equal to ten percent (10%) of the tax, subject to a minimum of five

dollars ($5). 7) If the return is more than thirty (30) days late, and additional tax of five percent (5%) of the tax due should be added

for each thirty (30) days, or fraction thereof. 8) This report and total amount due must be remitted by check or money order and in the office of the Town of

Swansboro’s Finance Director by the 20th day following the last day of the month for which the Tax was collected.

Remit to: Town of Swansboro, 601 W. Corbett Ave, Swansboro, NC 28584 Questions? Please call Town of Swansboro Finance Department 910-326-4428

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SWANSBORO TOURISM DEVELOPMENT AUTHORITY 2019 MEETING SCHEDULE

THURSDAY, JANUARY 17, 2019 2:30pm THURSDAY, APRIL 11, 2019 2:30PM THURSDAY, JULY 11, 2019 2:30PM THURSDAY, OCTOBER 10, 2019 2:30PM