Occupancy Tax

Occupancy Tax (OT) is a County tax paid by tourists that is added to home rental and hotel fees. Although the added tax makes the prices higher it is justified by the State’s requirement to re-invest the tax revenues to make the area more competitive and attract more private investment in homes and businesses.

What Does the Law Say?

In 2004, Currituck County’s Occupancy Tax law was updated, allowing Currituck County to increase the Occupancy Tax rates on revenues from rental homes, hotels, and campgrounds to 6% (a 50% increase). This increase was sought by the County following the devastation of Currituck’s beach by Hurricane Isabel.

The law was approved by N.C. state legislators alongside a change in the purposes for which the funds could be used.

Specific changes included:

• Removing prior authorization to use of funds for “construction and maintenance of public facilities and buildings, garbage, refuse, and solid waste collection and disposal, police protection, and emergency services.”

• Removing the County’s authority to “deposit unused funds in the Currituck County General Fund … to be used for any lawful purpose.”

 Additionally, the law requires that two-thirds of the funds be used for Tourism Related Purposes defined as “projects that in the judgment of the commissioners increase the use of lodging and other facilities by attracting tourists and business travelers ... including beach nourishment.”

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Below is a copy of the law as passed with line-outs indicating what was removed from the previous law, and underlines to indicate what was added into the current law.