North CarolinaHB 2402025-2026 SessionHouse

Currituck/New Hanover Beach Towns/Jacksonville Occupancy Tax.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 1 costs, 0 mixed.

How Currituck must spend lodging taxes

Currituck must use two‑thirds of net proceeds for tourism‑related services, like law enforcement, emergency services, public facilities, solid waste, and beach nourishment, when they promote tourism. The remaining one‑third must promote travel and tourism. Net proceeds are gross receipts minus collection costs, capped at 3% of the first $500,000 and 1% of the rest each year. Promotion includes advertising, publications, market research, and related administrative costs. Beach nourishment includes placing sand and related non‑hardening work that meets State coastal rules. These rules apply beginning June 18, 2026.

Jacksonville hotel tax extended to 2037

Jacksonville’s occupancy‑tax authority now runs through July 1, 2037. A related subsection becomes effective on July 1, 2037. This keeps the city’s occupancy tax and its authorized uses in place under current law until that date. The extension is effective June 18, 2026.

New Hanover beach towns direct tourism funds

New Hanover County sends each beach town’s net occupancy‑tax proceeds every quarter to the Cape Fear Coast Convention and Visitors Bureau for a separate town account. The Authority uses at least 50% to promote travel and tourism in that town and consults the town before spending. The rest funds tourism‑related needs, including seasonal ocean rescue and lifeguards, and police and fire overtime for festivals and events. The same cap on collection costs applies: 3% of the first $500,000 and 1% of the rest each year. These rules apply to proceeds collected on or after June 18, 2026.

Higher lodging taxes in Currituck County

Currituck County may charge a 3% room occupancy tax on taxable lodging. If it adopts that tax, it may add another 1%. If both are in place, it may add up to 2% more, for a total up to 6%. These taxes are on top of State and local sales taxes. The law applies to proceeds collected on or after June 18, 2026.

Sponsors & Cosponsors

Sponsor

Todd Carver
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 339 • No: 1

House vote • 6/17/2026

HB 240: Currituck/NH Beach Towns/J'ville OT.

Yes: 111 • No: 1 • Other: 6

House vote • 3/26/2025

HB 240: Davidson Charter Consolidation.

Yes: 112 • No: 0 • Other: 7

House vote • 3/25/2025