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06/24/11 <br />RE: Cabarrus County Tourism Authority Occupancy Tax Collection Administrative Fee and <br />Sports Development <br />History <br />• Prior to July 1, 2009 Cabarrus County had retained 5% of the total Occupancy Tax <br />collected on a monthly basis as an Administrative Fee. The Administrative Fee is <br />legislated by the State of North Carolina and the maximum amount allowed to be <br />withheld is 5% for purposes of collecting the tax. <br />• Beginning with the FY 2009/2010 budget year the Cabarrus County Tourism Authority <br />reached an agreement with Cabarrus County to reduce the Administrative Fee from 5% <br />to 1.5% in exchange for a Sports Development fund to be created by the Tourism <br />Authority. The fund, 10% of Occupancy Tax collected, was set aside by the Tourism <br />Authority in order to assist with the creation, expansion, and improvements of sports <br />facilities in the County. The Tourism Authority has been setting aside 10% of the <br />Occupancy Tax collected for the past 2 fiscal years. <br />Administrative Fee FY 2011/2012 <br />• The Tourism Authority's Board of Directors approved on May 25, 2011 to discontinue <br />setting aside 10% of the Occupancy Tax collected for the Sports Development fund. <br />Since the establishment of this fund was tied to the Administrative Fee charged by the <br />County and the fund was being discontinued, the Tourism Authority agreed to return to <br />a 5% Administrative Fee beginning with the FY 2011/2012 budget. <br />Sports Development FY 2011/2012 <br />• The Tourism Authority's Board of Directors approved on May 25, 2011 to enter into an <br />agreement with the County, to be renewed annually, to provide 5% of the Occupancy <br />Tax collected to assist with the expansion and improvements of existing sports facilities <br />in Cabarrus County. The agreement also calls for the County to provide assistance to <br />the Tourism Authority with access to the existing facilities for the purposes of <br />generating tournament play that increases overall room night production. This 5% will <br />be retained by the County on a monthly basis and decisions made by the County <br />concerning the use of these funds will be communicated to the Tourism Authority's <br />Board of Directors. <br />Cabarrus County Convention and Visitors Bureau �t tachment number 2 <br />3003 Dale Earnhardt Bouievard • Kannapolis, NC 28083 • 704.782.4340 ° WWWNISItCabarrus.coltf <br />F -3 Page 83 <br />