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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
SESSION LAW 2026-15
SENATE BILL 484
*S484-v-5*
AN ACT TO CLARIFY TH E APPROPRIATE USE OF PROCEEDS OF A ROOM
OCCUPANCY TAX THAT M AY BE USED FOR TOURI SM-RELATED
EXPENDITURES.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 160A-215 reads as rewritten:
"§ 160A-215. Uniform provisions for room occupancy taxes.
…
(f1) Use. – The proceeds of a room occupancy tax shall not be used as follows:
(1) for For development or construction of a hotel or another transient lodging
facility.
(2) For the proceeds of a room occupancy tax that may be used for tourism-related
expenditures, for services ordinarily provided by a city for its residents, or for
purposes that are designed for or primarily benefit residents of the city unless
explicitly authorized by local act, including all of the following:
a. Solid waste collection or disposal.
b. Water supply, distribution, or treatment.
c. Fire protection.
d. Law enforcement, public safety services, or emergency services.
e. Affordable housing.
f. Education.
(g) Applicability. – Subsection (c) of this section applies to all cities that levy an
occupancy tax. To the extent subsection (c) conflicts with any provision of a local act, subsection
(c) supersedes that provision. Subdivision (2) of subsection (f1) of this section applies to all cities
that levy an occupancy tax. The remainder of this section applies only to Beech Mountain District
W, to the Cities of Belmont, Burlington, Conover, Eden, Elizabeth City, Gastonia, Goldsboro,
Graham, Greensboro, Hickory , High Point, Indian Trail, Jacksonville, Kings Mountain, Lake
Santeetlah, Lenoir, Lexington, Lincolnton, Lowell, Lumberton, Mebane, Monroe, Mount Airy,
Mount Holly, Reidsville, Roanoke Rapids, Salisbury, Sanford, Shelby, Statesville, Washington,
and Wilmington, to the Towns of Ahoskie, Beech Mountain, Benson, Bermuda Run, Blowing
Rock, Boiling Springs, Boone, Burgaw, Carolina Beach, Carrboro, Cooleemee, Cramerton,
Dallas, Dobson, Elkin, Elon, Fontana Dam, Four Oaks, Franklin, Grover, Hillsborough,
Jefferson, Jonesville, Kenly, Kure Beach, Lansing, Leland, McAdenville, Mocksville,
Mooresville, Murfreesboro, North Topsail Beach, Pembroke, Pilot Mountain, Ranlo,
Robbinsville, Selma, Smithfield, St. James, St. Pauls, Swansboro, Troutman, Tryon, West
Jefferson, Wrightsville Beach, Yadkinville, Yanceyville, to the municipalities in Avery and
Brunswick Counties, to Clayton District C, Saluda District D, and Stallings District S."
SECTION 2. G.S. 153A-155 reads as rewritten:
"§ 153A-155. Uniform provisions for room occupancy taxes.
…
(f1) Use. – The proceeds of a room occupancy tax shall not be used as follows:
Page 2 Session Law 2026-15 Senate Bill 484
(1) for For development or construction of a hotel or another transient lodging
facility.
(2) For the proceeds of a room occupancy tax that may be used for tourism-related
expenditures, for services ordinarily provided by a county for its residents, or
for purposes that are designed for or primarily benefit residents of the county
unless explicitly authorized by local act, including all of the following:
a. Solid waste collection or disposal.
b. Water supply, distribution, or treatment.
c. Fire protection.
d. Law enforcement, public safety services, or emergency services.
e. Affordable housing.
f. Education.
(g) Applicability. – Subsection (c) of this section applies to all counties and county
districts that levy an occupancy tax. To the extent subsection (c) conflicts with any provision of
a local act, subsection (c) supersedes that provision. Subdivision (2) of subsection (f1) of this
section applies to all counties that levy an occupancy tax. The remainder of this section applies
only to Alleghany, Anson, Bertie, Brunswick, Buncombe, Burke, Cabarrus, Camden, Carteret,
Caswell, Chatham, Cherokee, Chowan, Clay, Cr aven, Cumberland, Currituck, Dare, Davie,
Duplin, Durham, Edgecombe, Forsyth, Franklin, Graham, Granville, Halifax, Haywood,
Henderson, Jackson, Madison, Martin, McDowell, Mitchell, Montgomery, Moore, Nash, New
Hanover, Northampton, Pasquotank, Pender, Per quimans, Person, Randolph, Richmond,
Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Stokes, Swain, Transylvania,
Tyrrell, Union, Vance, Warren, Washington, Wayne, Wilson, and Yancey Counties, to Avery
County District A, Graham County District G, Harnett County District H, Iredell County District
I, New Hanover County District U, Pender County District P, Surry County District S, Watauga
County District U, Wilkes County District W, Yadkin County District Y, and the Township of
Averasboro in Harnett County and the Ocracoke Township Taxing District."
SECTION 3. This act is effective when it becomes law and applies to the expenditure
of occupancy tax proceeds collected on or after that date.
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
s/ Josh Stein
Governor
Approved 3:27 p.m. this 22nd day of June, 2026