Newly compiled data by the North Carolina Association of County Commissioners shows that the money coming in from occupancy taxes is on the rise in recent years.
The latest available data for occupancy taxes shows that the state of North Carolina brought in $326 million in a year – which is well above the pre-pandemic levels.
That number reflects the occupancy tax rate revenue for the fiscal year ending in June 30 of 2022, the last fiscal year for which there are complete vetted numbers.
That $326 million was generated by the 82 counties in the state that apply the occupancy tax – an extra charge placed on motel and hotel rooms and some simular accommodations.
In fiscal year 2020-2021, county occupancy taxes across the state raised just over $234 million. Two years before that, the revenue from the taxes hit a pre-pandemic high of $262 million.
Now that the pandemic is over and people are traveling more, the revenue from occupancy taxes looks to remain on an upward trajectory – especially since the NC General Assembly continues to add to the list of counties where travelers have to pay the added charge.
Last year, the General Assembly granted new occupancy taxing authority – at varying rates – to the following counties: Avery, Davidson, Iredell, Bertie, Stokes, Warren, Union and Wilkes.
Across the state, the proceeds from occupancy taxes go toward things like funding tourism development authorities, local chambers of commerce initiatives and funding programs for municipalities.