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Primary Sponsor

Last Action

Ch. SL 2026-152026-06-22

Vote Breakdown

Plain Language Summary

This bill clarifies how North Carolina cities and counties can spend room occupancy tax revenue (taxes paid by hotel guests). It prohibits using these tourism-focused funds for basic services like police, fire, water, sewage, affordable housing, and education—unless a local law specifically allows it. The restriction applies statewide, but other provisions apply only to designated cities and counties.

Arguments in Favor

• •Supporters argue this bill ensures room occupancy taxes are used for their intended purpose: promoting tourism and tourism-related activities that attract visitors.
• •By preventing these funds from subsidizing general city and county services, the bill protects the integrity of tourism investments and ensures hotel guests' tax dollars directly benefit tourism infrastructure and marketing rather than routine government operations.

Arguments Against

• •Opponents may contend this bill limits local flexibility in addressing community needs, particularly in smaller towns that rely on room occupancy tax revenue to fund essential services.
• •They argue communities should decide locally how to allocate these funds based on their specific priorities, and that restricting use could leave gaps in critical services like public safety, water systems, and affordable housing that tourism activity strains.