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Primary Sponsor

Last Action

Ch. SL 2026-72026-06-18

Vote Breakdown

Plain Language Summary

This bill makes three changes to how North Carolina counties and towns can use occupancy taxes (taxes on hotel room rentals). It allows Currituck County to levy an additional occupancy tax up to 2%, clarifies how New Hanover Beach Towns can spend occupancy tax revenue to include lifeguard services and police/fire overtime for events, and extends Jacksonville's ability to use occupancy tax revenue by 10 years (from 2027 to 2037).

Arguments in Favor

• •Supporters argue these changes give local communities more flexibility to fund tourism-related needs and public services impacted by seasonal tourism.
• •The expanded uses—such as beach nourishment, lifeguard services, and festival security—help manage costs directly caused by visitor influx while promoting economic development.
• •The additional revenue options allow smaller communities like Jacksonville to continue funding tourism initiatives without relying solely on local property taxes.

Arguments Against

• •Opponents may be concerned that higher occupancy taxes could discourage tourism and hurt the hospitality industry's competitiveness.
• •They might argue that allowing broader uses of occupancy tax funds—beyond strict tourism promotion—blurs the original purpose of the tax and could enable general government spending.
• •Some may also question whether extending Jacksonville's occupancy tax authority indefinitely (removing the sunset date) reduces accountability for how these funds are used.