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.