Chapter 21
Taxation
Article I - Room Occupancy Tax
[HISTORY: Adopted by the Board of Commissioners of Henderson County. Amended 8-19-1987; 10-1-
1987; 9- 19-
2007; 7- 1-2010.]

§ 21-1. Levy of Tax; Statutory Authority. 

A room occupancy tax of 5% is levied, as authorized in North Carolina Session Law 2013-61 and its predecessors.

Article II - Sales and Use Tax 
 
§ 21-2.  Findings; Statutory Authority.  
A.
The North Carolina General Assembly authorized the levy of local government sales and 
use taxes through enactment of Chapter 77 of the 1971 Session Laws, codified as 
N.C.G.S. Chapter 105, Article 39; Chapter 908 of the 1983 Session Laws, codified as
and 41;
and Chapter 906 of the 1985 Session  
Laws (Regular Session 1986), codified as N.C.G.S.
B.
These sales and use taxes authorized by the General Assembly have been levied in 
Henderson County by action of the Board of Commissioners acting pursuant to the 
authorizing legislation.  
C.
Enactment by the General Assembly of Chapter 832 of the 1987 Session Laws redefined 
the situs of a transaction for the purpose of collecting local government sales and use 
taxes, thus redefining the application of those taxes and requiring re adoption of these 
taxes by the County Board of Commissioners.  
D.
Section 10 of Chapter 832 of the 1987 Session Laws provided that failure to adopt 
expansion of the Local Government Sales and Use Tax Act will result in repeal of these 
taxes in Henderson County because they would be inconsistent with the scope of levies 
authorized in N.C.G.S. Chapter 105,Articles 39, 40, 41 and 42,
as amended.  
E.
A public hearing was held on November 18, 1987, to consider the expansion of local 
government sales and use taxes authorized by N.C.G.S. Chapter 105
Articles 39, 40, 41 
and 42, and interested citizens presented their views to the Board of Commissioners.  
F.
The Board of County Commissioners caused public notice of the public hearing to be 
given, as required by Section 9 of Chapter 832 of the 1987 Session Laws, at least 10 days
prior to the date of the hearing.  
G.
The Board of Commissioners of Henderson County does hereby find that adoption of the 
expansion of the Local Government Sales and Use Tax Act within Henderson County is 
both desirable and necessary to adequately finance the operation of the County and cities 
and towns herein.  
  
§ 21-3. Expansion Of State Act Adopted. 
The expansion of the Local Government Sales and Use Tax Act, as defined in Section 4 of Chapter 832 of
the 1987 Session Laws, is hereby adopted. The taxes hereby imposed and levied shall apply to the same
extent and be subject to the same limitations as are set forth in N.C.G.S. Chapter 105, Articles 39, 40, 41
and 42, as amended.  
§ 21-4. Effective Date. 
Collection of the expanded local government sales and use tax by the North Carolina Secretary of Revenue,
and liability therefore, shall begin and continue on and after the first day of March 1988.  
  
§ 21-5.  Distribution of Proceeds. 
The net proceeds of the taxes levied herein shall be distributed by the Secretary of Revenue to Henderson
County and the municipalities therein as prescribed by N.C.G.S. 105-472, 105-486, 105-493
and 105-501.
The amount distributed to Henderson County shall be divided among the County and the municipalities
herein in accordance with the method previously selected by the Board of Commissioners of Henderson
County in accordance with the provisions of N.C.G.S. 105-472.   
§ 21-6. Through 21- 25. (Reserved)