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North CarolinaHB 3322025-2026 SessionHouseWALLET

AN ACT TO MODIFY THE NASH COUNTY OCCUPANCY TAX.

Sponsored By: Allen Chesser (Republican)

Became Law

AUTHORITIESCOUNTIESHOTELS & MOTELSLOCALLOCAL GOVERNMENTMUNICIPALITIESRATIFIEDSESSION LAWSTAXATIONTAXES, OCCUPANCYTRAVEL & TOURISMNASH COUNTYBEAUFORT COUNTYHAYWOOD COUNTYCHEROKEE COUNTYROCKY MOUNTCHAPTEREDTOURISM DEVELOPMENT AUTHORITIESTAX DISTRICTS

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 2 costs, 0 mixed.

How District R spends hotel taxes

Rocky Mount District R sends occupancy‑tax net proceeds each quarter to its Tourism Development Authority. At least two‑thirds must promote travel and tourism; the rest funds tourism projects that directly benefit the district. Admin costs are capped at 3% of the first $500,000 collected each year and 1% of the rest. When the tax is levied, the district creates a tourism authority with industry representation, no elected officials, and required quarterly and annual reports. After the old 2% tax is repealed and the new authority is created, Nash County and the City must transfer any collected or unspent 2% net proceeds (as of October 1, 2026) to the new authority for the same purposes.

How Nash County spends hotel taxes

Nash County sends occupancy‑tax net proceeds to the Nash County Tourism Development Authority each quarter. At least two‑thirds must promote travel and tourism; the rest funds tourism‑related projects in the county. County admin costs are capped at 3% of the first $500,000 collected each year and 1% of the rest. When the tax is levied, the county creates a tourism authority with industry representation, no elected officials, and required quarterly and annual reports.

3% hotel tax in Nash County

Nash County charges a 3% room occupancy tax on taxable lodging. It applies to hotel rooms, short‑term rentals, and similar paid stays already taxed by the State. Lodging businesses must add this tax to each bill and send it to the county. County occupancy‑tax rules and penalties apply.

Rocky Mount District R 2% hotel tax

The law creates Rocky Mount District R for the part of the city in Nash County. The City Council serves as the district’s governing body. Beginning October 1, 2026, the district can levy up to a 2% room occupancy tax on taxable lodging in the district, in addition to sales taxes. The district’s tax follows city occupancy‑tax rules for billing, collection, and penalties.

Sponsors & Cosponsors

Sponsor

  • Allen Chesser

    Republican • House

Cosponsors

  • Shelly Willingham

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 464 • No: 6

House vote • 7/2/2026

HB 332: Nash/Rocky Mount Occupancy Tax Changes.

Yes: 108 • No: 0 • Other: 10

Senate vote • 7/1/2026

HB 332: Various Occupancy Tax Changes.

Yes: 46 • No: 1 • Other: 3

Senate vote • 6/30/2026

HB 332: Various Occupancy Tax Changes.

Yes: 48 • No: 1 • Other: 1

Senate vote • 6/30/2026

HB 332: Various Occupancy Tax Changes.

Yes: 48 • No: 1 • Other: 1

House vote • 6/10/2025

HB 332: Nash/Rocky Mount District Occupancy Tax.

Yes: 109 • No: 2 • Other: 9

House vote • 6/4/2025

HB 332: Nash/Rocky Mount District Occupancy Tax.

Yes: 105 • No: 1 • Other: 13

Actions Timeline

  1. Ch. SL 2026-35

    7/2/2026House

  2. Ratified

    7/2/2026House

  3. Ordered Enrolled

    7/2/2026House

  4. Concurred In S Com Sub

    7/2/2026House

  5. Ruled Not Material By Speaker

    7/2/2026House

  6. Placed On Cal For 07/02/2026

    7/1/2026House

  7. Cal Pursuant 36(b)

    7/1/2026House

  8. Ruled Material

    7/1/2026House

  9. Special Message Received For Concurrence in S Com Sub

    7/1/2026House

  10. Special Message Sent To House

    7/1/2026Senate

  11. Engrossed

    7/1/2026Senate

  12. Passed 3rd Reading

    7/1/2026Senate

  13. Passed 2nd Reading

    6/30/2026Senate

  14. Amend Adopted A1

    6/30/2026Senate

  15. Placed on Today's Calendar

    6/30/2026Senate

  16. Reptd Fav

    6/30/2026Senate

  17. Re-ref Com On Rules and Operations of the Senate

    6/18/2026Senate

  18. Com Substitute Adopted

    6/18/2026Senate

  19. Reptd Fav Com Substitute

    6/18/2026Senate

  20. Re-ref to Finance. If fav, re-ref to Rules and Operations of the Senate

    6/11/2026Senate

  21. Withdrawn From Com

    6/11/2026Senate

  22. Ref To Com On Rules and Operations of the Senate

    6/11/2025Senate

  23. Passed 1st Reading

    6/11/2025Senate

  24. Regular Message Received From House

    6/11/2025Senate

  25. Regular Message Sent To Senate

    6/11/2025House

Bill Text

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