rate for Dare County is 1% of the sales price of prepared foods and beverages sold within the county for consumption on or off a premises by a retailer who is subject to sales tax under G.S. 105-164.4(a)(1). This tax is in addition to State and local sales tax.

Authorization for the prepared food tax became effective January 1, 1992 by House Bill 225, 1991 Session, General Assembly of North Carolina.

The use and distribution of the Food & Beverage Tax go to the Dare County Tourism Board. The first eligible expense is the cost of an annual audit. Of the remainder, 75% must be used for the cost of administration and to promote tourism. The Tourism Board's expenditures may include:

• advertising to promote less than peak season events and programs
• marketing research
• a mail and telephone inquiry response program
• welcoming and hospitality functions; and 25% must be used for services or programs needed due to the impact of tourism on the county.