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October 6, 2014 (Work Session) Page 2172 The Board of Commissioners for the County of Cabarrus met for an Agenda Work Session in the Multipurpose Room at the Cabarrus County Governmental Center in Concord, North Carolina on Monday, October 6, 2014 at 4:00 p.m. Present - Chairman: Elizabeth F. Poole Vice Chairman: Larry M. Burrage Commissioners: Christopher A. Measmer Stephen M. Morris Jason A. Oesterreich Also present were Mike Downs, County Manager; Richard M. Koch, County ,Attorney; Pam Dubois, Deputy County Manager; and Megan Smit, Clerk to the Board. Call to Order Chairman Poole called the meeting to order at 4:02 p.m. Approval of Agenda UPON MOTION of Vice Chairman Burrage, seconded by Commissioner Measmer and unanimously carried, the Board approved the Agenda as presented. Introduction of New Staff Mike Downs, County Manager, announced Susan Fearrington, Interim Finance Director has been promoted to Finance Director. He stated Ms. Fearrington has been on staff for eighteen years. Mr. Downs introduced Emery Ortiz, from Onslow County, as the new Library Director. Discussion Items - No Action County Attorney - hotel Occupancy Tax Settlement with Online Travel Companies Richard Koch, County Attorney, presented the following information relating to the hotel occupancy tax settlement with online travel companies. Wake, Dare, Mecklenburg and Buncombe Counties sued 11 online travel ( "OLT ") companies such as Travelocity and Hotels.com for back hotel occupancy taxes on the difference between the amount paid by a consumer for the hotel room itself and the total paid to the OLT company (i.e. the fees retained by the OLT company for that service) . On August 19, 2014, the North Carolina Court of Appeals ruled in favor of the OLT companies, holding that the OLT fees were not subject to a county's occupancy tax. However, effective July 1, 2010, during the pendency of these cases, the General Assembly amended N.C. Gen. Stat. 105•- 164.4(a)(3) to presumably include these fees as being subject to occupancy taxes. The counties named above have decided to settle their cases with the OLT companies by agreeing prospectively that the occupancy tax will be collected on the OLT fees as well as the hotel room charge. This means that no tax would be due on the fees paid from the date the law changed to the effective date of the agreement. The attorney representing the OLT companies in the litigation has proposed that his clients settle with other counties imposing a hotel occupancy tax on the same basis as with wake, Dare, Mecklenburg and Buncombe. A discussion ensued. During discussion, Mr. Koch responded to a variety of questions from the Board. Commissioner Oesterreich expressed support for the agreement and requested an estimate of the amount that would potentially be waived prior to Board action. Chairman Poole expressed support for the agreement, depending on the outcome of the estimated figure to be waived. She advised the Board may want to place this item on the October 20, 2014 Agenda as a New Business item.