Occupancy Tax

Creation of Occupancy Tax

On August 6, 2009, the General Assembly authorized the City of Jacksonville to levy a room occupancy tax of 3% of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the city that is subject to the sales tax imposed by the State of North Carolina. This tax is in addition to any State or Local sales tax.

Exemptions

This tax does not apply to the following:

Accommodations furnished by non-profit charitable, education, or religious organizations that further their non-profit purpose.
An accommodation arranged or provided to a person by a school, camp, or similar entity where tuition or fees are charged to the person for enrollment in the school, camp, or similar entity.
A private residence, cottage, or similar accommodation that is rented for fewer than 15 days in a calendar year other than a private residence, cottage, or similar accommodation listed with a real estate broker or agent.
An accommodation supplied to the same person for a period of 90 or more continuous days.

Government Rentals

Rentals made directly to and paid directly by the U.S. Government (Federal Government and Military Personnel) are tax-exempt. The exception to this law is the Army National Guard. Sales to this organization are not tax-exempt because it is funded by the State. In order for room rental to the federal government and military personnel to be tax-exempt, the room must be paid for directly by the U.S. Government, otherwise, it is taxable.

Use of Tax Revenue

The City of Jacksonville remits the net proceeds of the occupancy tax to the Jacksonville Tourism Development Authority on a quarterly basis. The Authority must use at least two-thirds of the funds remitted to promote travel and tourism in Jacksonville and use the remainder for tourism-related expenditures. In 2017, the legislature allowed the City to "flip" the requirements of the funds by allowing two-thirds to be allocated towards tourism-related expenditures, and the remainder to promote travel and tourism for a period of 10 years. This allows the City to focus on developing projects that will increase tourist attractions.

File Room Occupancy Tax Report

File a monthly room occupancy tax report. Once completed, please pay using the payment link below or send payment to: City of Jacksonville, PO Box 128, Jacksonville, NC 28541-0128. This report and the total amount due must be remitted and in the office of the City of Jacksonville Finance Director by the 20th day following the last day of the month for which the Tax was collected.

If you have questions, please call the City of Jacksonville Finance Department at 910 938-5259.