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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
SESSION LAW 2026-7
HOUSE BILL 240
*H240-v-4*
AN ACT TO MAKE OCCUP ANCY TAX CHANGES FOR CURRITUCK COUNTY, T HE
NEW HANOVER BEACH TOWNS, AND THE CITY OF JACKSONVILLE.
The General Assembly of North Carolina enacts:
PART I. CURRITUCK COUNTY OCCUPANCY TAX CHANGES
SECTION 1.(a) Section 1 of Chapter 209 of the 1987 Session Laws, as amended by
Chapter 155 of the 1991 Session Laws, S.L. 1999 -155, S.L. 2004-95, and Section 60(s) of S.L.
2013-414, reads as rewritten:
"Section 1. Occupancy tax. (a) Authorization and scope. Scope. – The Currituck County
Board of Commissioners may levy a room occupancy tax of three percent (3%) of the gross
receipts derived from the rental of any room, lodging, or similar an accommodation furnished by
a hotel, motel, inn, or similar place within the county that is subject to sale s tax imposed by the
State under G.S. 105-164.4(a)(3). This tax is in addition to any State or local sales tax.
(a1) Additional occupancy tax. Occupancy Tax. – In addition to the tax authorized by
subsection (a) of this section, the Currituck County Board of Commissioners may levy a room
occupancy tax of one percent (1%) of the gross receipts derived from the rental of
accommodations taxable under subsection (a). (a) of this section. The levy, collection,
administration, and repeal of the tax authorized by this subsection shall be in accordance with
the provisions of this act. Currituck County may not levy a tax under this subsection unless it
also levies the tax under subsection (a).(a) of this section.
(a2) Second Additional Occupancy Tax. – In addition to the tax authorized by subsections
(a) and (a1) of this section, the Currituck County Board of Commissioners may levy a room
occupancy tax of up to two percent (2%) of the gross rece ipts derived from the rental of
accommodations taxable under subsection (a). (a) of this section. The levy, collection,
administration, and repeal of the tax authorized by this subsection shall be in accordance with
the provisions of this act. Currituck Co unty may not levy a tax under this subsection unless it
also levies the tax under subsections (a) and (a1).(a1) of this section.
…
(e) Use of tax revenue. Tax Revenue. – Currituck County shall use the net proceeds of
the tax levied under subsection (a) of this section under this act as follows:
(1) Two-thirds only for tourism-related expenditures, including tourist-related
purposes, including services or programs needed due to the impact of tourism
and seasonal population increases, such as law enforcement, emergency
services, fire protection, construction and maintenance of public facilities,
solid waste collection and disposal, and beach nourishment. Funds under this
subdivision may not be used for services or programs normally provided by
the county on behalf of its citizens unless the services or programs promote
tourism and enlarge its economic benefits by enhancing the ability of the
county to attract and provide for tourists.
(2) Currituck County shall use at least two -thirds of the net proceeds of the tax
levied under subsections (a1) and (a2) of this section The remainder only to
Page 2 Session Law 2026-7 House Bill 240
promote travel and tourism and shall use the remainder of those funds for
tourism-related expenditures. tourism.
(e1) Definitions. – The following definitions apply in this subsection:section:
(1) Beach nourishment. – The placement of sand, from other sand sources, on a
beach or dune by mechanical means and other associated activities that are in
conformity with the North Carolina Coastal Management Program along the
shorelines of the Atlantic Ocean of North Carolina and connecting inlets for
the purpose of widening the beach to benefit public recreational use and
mitigating damage and erosion from storms to inland property. The term
includes expenditures for any of the following:
a. Costs directly associated with qualifying for projects either contracted
through the U.S. Army Corps of Engineers or otherwise permitted by
all appropriate federal and State agencies.
b. The nonfederal share of the cost required to construct these projects.
c. The costs associated with providing enhanced public beach access.
d. The costs of associated nonhardening activities such as the planting of
vegetation, the building of dunes, and the placement of sand fences.
(2) Net proceeds. – Gross proceeds less the cost to the county of administering
and collecting the tax, as determined by the finance officer, not to exceed three
percent (3%) of the first five hundred thousand dollars ($500,000) of gross
proceeds collected each year and one percent (1%) of the remaining gross
receipts collected each year.
(3) Promote travel and tourism. – To advertise or market an area or activity,
publish and distribute pamphlets and other materials, conduct market research,
or engage in similar promotional activities that attract tourists or business
travelers to the area; the term includes administrative expenses incurred in
engaging in these activities.
(4) Tourism-related expenditures. – Expenditures that, in the judgment of the
Currituck County Board of Commissioners, are designed to increase the use
of lodging facilities, meeting facilities, recreational facilities, and convention
facilities in a county by attracting tourists or business travelers to the county.
The term includes t ourism-related capital expenditures and beach
nourishment.
…."
SECTION 1.(b) This Part is effective when it becomes law and applies to the
expenditure of occupancy tax proceeds collected on or after that date.
PART II. NEW HANOVER BEACH TOWNS OCCUPANCY TAX CHANGES
SECTION 2.(a) Section 1(d) of S.L. 2002-138 reads as rewritten:
"SECTION 1.(d) Distribution and Use of Tax Revenue. – The county shall, on a quarterly
basis, remit the net proceeds of the occupancy tax levied by each beach town under this sec tion
to the Tourism Development Authority for deposit to a separate account for that beach town. The
Authority shall use at least one -half of the funds in each beach town account to promote travel
and tourism in that beach town and shall use the remainder in each beach town account for
tourism-related expenditures in that beach town. Before spending any funds in a beach town
account for promoting travel and tourism or for tourism-related expenditures, the Authority must
consult with the affected beach town regarding its needs for promoting travel and tourism and
for tourism-related expenditures.
The following definitions apply in this subsection:
(1) Beach towns. – Carolina Beach, Kure Beach, and Wrightsville Beach.
House Bill 240 Session Law 2026-7 Page 3
(2) Net proceeds. – Gross proceeds less th e cost to the county of administering
and collecting the tax, as determined by the finance officer, not to exceed three
percent (3%) of the first five hundred thousand dollars ($500,000) of gross
proceeds collected each year and one percent (1%) of the rem aining gross
receipts collected each year.
(3) Promote travel and tourism. – To advertise or market an area or activity,
publish and distribute pamphlets and other materials, conduct market research,
or engage in similar promotional activities that attract tourists or business
travelers to the area; the term includes administrative expenses incurred in
engaging in the listed activities.
(4) Tourism Development Authority or Authority. – The Cape Fear Coast
Convention and Visitors Bureau created by New Hanover County pursuant to
Part VIII of Chapter 908 of the 1983 Session Laws, as amended.
(5) Tourism-related expenditures. – Expenditures that, in the judgment of the
Tourism Development Authority, are designed to increase the use of lodging
facilities, meeting facilities, or convention facilities in a town or to attract
tourists or business travelers to the town. The term includes tourism -related
capital expenditures.expenditures, seasonal ocean rescue and lifeguard
services, and police and fire overtime pay for festivals and special events that
are funded by occupancy tax proceeds."
SECTION 2.(b) This Part is effective when it becomes law and applies to the
expenditure of occupancy tax proceeds collected on or after that date.
PART III. EXTEND SUNSET ON JACKSONVILLE'S USE OF OCCUPANCY TAX
SECTION 3.(a) Section 3.1(c) of S.L. 2017-202 reads as rewritten:
"SECTION 3.1.(c) Subsection (a) of this section becomes effective on July 1, 2017, and
expires on July 1, 2027. 2037. Subsection (b) of this section becomes effective on July 1, 2027.
2037. The remainder of this section is effective when it becomes law."
SECTION 3.(b) This Part is effective when it becomes law.
PART IV. EFFECTIVE DATE
SECTION 4. Except as otherwise provided, this act is effective when it becomes
law.
In the General Assembly read three times and ratified this the 18th day of June, 2026.
s/ Rachel Hunt
President of the Senate
s/ Donna McDowell White
Presiding Officer of the House of Representatives