Issue

Expenditures—scope of authority—net proceeds of occupancy tax—"tourism-related expenditures"—public safety services

Summary

Pursuant to the plain language of a legislative enabling statute that allows Currituck County to collect a room occupancy tax and spend the net proceeds from that tax on "tourism-related expenditures," the county's decision to use the occupancy tax revenues to enhance certain public safety services (including police, fire, and emergency response services) was within its discretionary authority, not taken in bad faith, not arbitrary or capricious, and not in disregard of the law. The county commissioners made a reasoned decision that the expenditures were necessary to promote and develop tourism based on the substantial population increase during peak tourist season and related year-round costs to provide public safety services during that period. Therefore, the trial court properly granted summary judgment in favor of defendants (the county and its tourism development agency) on plaintiffs' (county property owners) action for declaratory judgment; the decision by the Court of Appeals to the contrary was reversed and the matter was remanded for proceedings consistent with the holding of the Supreme Court.

Summary from the North Carolina Reports digest (official subject index). Read the opinion →