By Becky Long
Publisher
Clay County Commissioners on April 6 agreed to request the N.C. Legislature allow the county to increase its current occupancy tax from 3 percent to 6 percent.
In a resolution that will be sent to the legislature, commissioners noted that tourism has become “one of the largest industries,” in Clay County and to meet the increased needs of tourism, the county needs to increase its occupancy tax.
Occupancy taxes are a percentage of the gross receipts derived from the rental of any room, lodging or similar accommodation furnished by a hotel, motel, inn or similar place within the county that is subject to sales tax imposed by the state. The tax does not apply to accommodations furnished by nonprofit charitable, education or religious organizations, according to a 2015 bill to amend the tax in Clay County.
Money collected is to be used for tourism-related expenses such as promotion or capital projects such as arenas or convention centers, among other visitor attractions.
Research conducted by the Magella Stragegy Group of Asheville reported $20,800 collected from occupancy taxes in Clay County for the fiscal year 2015-2016.
In fiscal year 21-22, occupancy tax revenue here was reported as $111,508 under the 3 percent tax, according to County Finance Officer Betty Patton.
All local occupancy taxes in North Carolina must be enacted by the General Assembly. Unlike sales tax, no occupancy tax revenue is directed to state government—100 percent remains at the local level, according to a statewide bill approving occupancy taxes in 1983.