Occupancy / Lodging Tax
Currituck County levies a local occupancy tax on the short-term rental of rooms, lodging or similar accommodations. This includes:
- vacation homes
- bed & breakfasts.
The Occupancy Tax does not apply to:
- accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose;
- any private residence that is rented for less than 15 days total in a calendar year;
- does not apply to stays of 90 or more consecutive days.
Individuals and operators of businesses that are required to collect the occupancy tax must file an Occupancy Tax Monthly Report (PDF) and remit the tax to the Tax Department by the 20th of the following month. Penalties will apply for late reporting and/or payments. (See reverse side of Occupancy Tax Report for instructions and information on calculating penalties)
The Currituck County occupancy tax rate is 6% of the gross receipts. Gross receipts include all fees that are logically related to, and thus are derived from the business of providing the accommodations, including but not limited to:
- inspection fees
- booking & security deposits
- peace of mind fees
- credit card fees
- pet fees
- linen fees
- and all other fees.
In addition to the County Occupancy Tax, a North Carolina Sales tax is also levied on vacation rentals, hotels/motels and other such lodgings. The current Sale Tax rate is 6.75%. You can register for a State Sales Tax ID Number, as well as provide instructions and options on how to pay the state sales tax on North Carolina Sales & Use Tax website.
At least 2/3 of the net proceeds of the tax levied must be used for tourism-related expenditures and the remaining 1/3 shall be used to promote travel and tourism. Currituck County’s Occupancy Tax began August 1, 1987. The tax rate initially was 3%, increased on January 1, 1992 to 4% and increased again to 6% on January 1, 2006.
Occupancy/Lodging Tax amounts collected from 1989 until present has shown a steady increase.
For questions about the occupancy tax, please call 252-232-3005, ext. 4053.