Occupancy Tax

Tax Collections Office
Dare County Justice Center
962 Marshall C Collins Dr
Room 166
Manteo NC 27954

Phone: 252.475.5964
Fax: 252.475.5949

The Occupancy Tax
rate for Dare County is six percent (6%) of gross receipts derived from the rental of room, lodging, campsite, or similar accommodation furnished by any hotel, motel, inn, tourist camp including private residences and cottages rented to transients.

The authorization and distribution for the 6% occupancy tax rate are as follows:

  • 3% (three percent) Room Occupancy Tax
    • Authorization House Bill 532, 1985 Session, General Assembly of North Carolina Effective July 1, 1985
    • Distribution must be used only for tourist-related purposes, including construction and maintenance of public facilities and buildings, garbage, refuse, solid waste collection and disposal, police protection and emergency services.
      • 2/3 to the 6 towns (Duck, Southern Shores, Kitty Hawk, Kill Devil Hills, Nags Head, Manteo). Distributed in proportion to the amount of ad valorem tax levied by each Town for the preceding fiscal year
      • 1/3 to Dare County
        In FY 2016, Dare County has earmarked their share of this 3% occupancy tax as follows:
        • 25% for garbage, refuse, and solid waste collection and disposal
        • 25% for police protection (Sheriff’s Office)
        • 50% for emergency services (Communications, Emergency Medical services, Emergency Medical Helicopter, and Emergency Management).

  • 1% (one percent) Room Occupancy and Tourism Development Tax
    • Authorization House Bill 225, 1991 Session, General Assembly of North Carolina Effective January 1, 1992
    • Distribution is as follows:
      • First eligible expense is the cost of an annual audit
      • 75% must be used for the cost of administration and to promote tourism, including the following:
        • advertising to promote less than peak season events and programs
        • marketing research
        • a mail and telephone inquiry response program
        • welcoming and hospitality functions
      • 25% must be used for services or programs needed due to the impact of tourism on the county.

  • 2% (two percent) Room Occupancy and Tourism Development Tax for Beach Nourishment
    • Authorization Senate Bill 92, 2001 Session, General Assembly of North Carolina Effective September 1, 2002
    • Authorization Senate Bill 1298, Session Law 2010-78, Section 7, General Assembly of North Carolina Effective January 1, 2014.
    • Distribution includes expenditures for the following:
      • Costs directly associated with qualifying for projects either contracted through the U.S. Army Corps of Engineers or otherwise permitted by all appropriate Federal and State agencies;
      • The nonfederal share of the costs required to construct these projects
      • The costs associated with providing enhanced public beach access;
      • The costs of associated nonhardening activities such as the planting of vegetation, the building of dunes, and the placement of sand fences