Occupancy Tax

State Action Needed

The occupancy tax in North Carolina is a tax on the stay in hotels and other accommodations. While a potentially significant source of revenue for tourist- based economies, the occupancy tax has traditionally funded tourism promotion.

The North Carolina General Assembly sets the occupancy tax rate for each locality and the designation of funds raised is set out in a local bill that must be approved by the North Carolina General Assembly. In order for this revenue to be used for early childhood purposes, the North Carolina General Assembly would need to set the occupancy tax rate and allocate funds to early childhood education.