North Carolina HB 240: Insurance Technical/Clarifying Changes.-AB

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2026-7
HOUSE BILL 240

*H240-v-4*
AN ACT TO MAKE OCCUPANCY TAX CHANGES FOR CURRITUCK COUNTY, THE
NEW HANOVER BEACH TOWNS, AND THE CITY OF JACKSONVILLE.

The General Assembly of North Carolina enacts:

PART I. CURRITUCK COUNTY OCCUPANCY TAX CHANGES
SECTION 1.(a) Section 1 of Chapter 209 of the 1987 Session Laws, as amended by
Chapter 155 of the 1991 Session Laws, S.L. 1999-155, S.L. 2004-95, and Section 60(s) of S.L.
2013-414, reads as rewritten:
"Section 1. Occupancy tax. (a) Authorization and scope. Scope. – The Currituck County
Board of Commissioners may levy a room occupancy tax of three percent (3%) of the gross
receipts derived from the rental of any room, lodging, or similar an accommodation furnished by
a hotel, motel, inn, or similar place within the county that is subject to sales tax imposed by the
State under G.S. 105-164.4(a)(3). This tax is in addition to any State or local sales tax.
(a1) Additional occupancy tax. Occupancy Tax. – In addition to the tax authorized by
subsection (a) of this section, the Currituck County Board of Commissioners may levy a room
occupancy tax of one percent (1%) of the gross receipts derived from the rental of
accommodations taxable under subsection (a). (a) of this section. The levy, collection,
administration, and repeal of the tax authorized by this subsection shall be in accordance with
the provisions of this act. Currituck County may not levy a tax under this subsection unless it
also levies the tax under subsection (a).(a) of this section.
(a2) Second Additional Occupancy Tax. – In addition to the tax authorized by subsections
(a) and (a1) of this section, the Currituck County Board of Commissioners may levy a room
occupancy tax of up to two percent (2%) of the gross receipts derived from the rental of
accommodations taxable under subsection (a). (a) of this section. The levy, collection,
administration, and repeal of the tax authorized by this subsection shall be in accordance with
the provisions of this act. Currituck County may not levy a tax under this subsection unless it
also levies the tax under subsections (a) and (a1).(a1) of this section.
...
(e) Use of tax revenue. Tax Revenue. – Currituck County shall use the net proceeds of
the tax levied under subsection (a) of this section under this act as follows:
(1) Two-thirds only for tourism-related expenditures, including tourist-related
purposes, including services or programs needed due to the impact of tourism
and seasonal population increases, such as law enforcement, emergency
services, fire protection, construction and maintenance of public facilities,
solid waste collection and disposal, and beach nourishment. Funds under this
subdivision may not be used for services or programs normally provided by
the county on behalf of its citizens unless the services or programs promote
tourism and enlarge its economic benefits by enhancing the ability of the
county to attract and provide for tourists.
(2) Currituck County shall use at least two-thirds of the net proceeds of the tax
levied under subsections (a1) and (a2) of this section The remainder only to

Page 2 Session Law 2026-7 House Bill 240
promote travel and tourism and shall use the remainder of those funds for
tourism-related expenditures. tourism.
(e1) Definitions. – The following definitions apply in this subsection:section:
(1) Beach nourishment. – The placement of sand, from other sand sources, on a
beach or dune by mechanical means and other associated activities that are in
conformity with the North Carolina Coastal Management Program along the
shorelines of the Atlantic Ocean of North Carolina and connecting inlets for
the purpose of widening the beach to benefit public recreational use and
mitigating damage and erosion from storms to inland property. The term
includes expenditures for any of the following:
a. 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.
b. The nonfederal share of the cost required to construct these projects.
c. The costs associated with providing enhanced public beach access.
d. The costs of associated nonhardening activities such as the planting of
vegetation, the building of dunes, and the placement of sand fences.
(2) Net proceeds. – Gross proceeds less the cost to the county of administering
and collecting the tax, as determined by the finance officer, not to exceed three
percent (3%) of the first five hundred thousand dollars ($500,000) of gross
proceeds collected each year and one percent (1%) of the remaining gross
receipts collected each year.
(3) Promote travel and tourism. – To advertise or market an area or activity,
publish and distribute pamphlets and other materials, conduct market research,
or engage in similar promotional activities that attract tourists or business
travelers to the area; the term includes adm