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Occupancy Tax |
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Definition of Gross Receipts |
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North Carolina State Statute 105-164.4, has been made applicable to all units of government in the State for the collection of occupancy taxes. 105-164.4 is a statute originally written to determine what items are subject to sales tax, thus if an item is subject to sales tax., then the item is also subject to occupancy tax. The wording used in 105-164.4 is that sales (and therefore occupancy) tax is imposed on “the gross receipts derived…from the rental of any rooms, lodgings or accommodations furnished to transients for a consideration”. Concerning what is included in gross receipts and therefore subject to sales and occupancy taxes, Currituck County has obtained an opinion from the NC Attorney General and Carteret County has obtained an opinion from the NC Department of Revenue. Both clearly state that gross receipts includes all ancillary fees and charges, such as booking fees, reservation fees, peace of mind fees, cleaning fees, credit card fees, pet fees, administration fees, security deposit fees, transfer fees, linen fees, etc….and all are subject to occupancy tax. You must collect the 5% County occupancy tax on all of the above items and remit the collections per the normal process. The gross amount of the fees charged should be included in the amount of gross receipts reported with the monthly occupancy tax form. |