Occupancy Tax

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Property owners who rent accommodations for fifteen (15) or more days per year must collect room occupancy taxes from their tenants and remit the tax to the Chatham County Tax Collector, regardless of whether the owner rents the property without assistance, contracts with a local realtor or property management company or uses an on-line rental service. The fifteen (15) or less days per year exemption does not apply if the rental is continually advertised for rent.

It is the responsibility of the property owner to:

ask if the fifteen (15) or less days per year exemption applies to your rental
(it will not apply if the rental is continually advertised)
be sure the on-line rental service is collecting and submitting the tax on your behalf

Required Forms

Business Resources

Opening a Business

Food, Lodging, Meeting Facility & Institutions

When is a License and Permit required?

NC Department Of Revenue - SUTB 6 (pg 48) - Accommodations*
*see SUTB 6-3 (pg 49) for "Fees or Charges Associated w/ the Rental of an Accommodation"

NCDOR - Rentals Accommodations

Return Check Penalties - NC General Statutes

Convention & Visitors Bureau

General Filing Information

The room occupancy tax report must be filed each month on or before the twentieth day of the month following the month in which the tax accrues. Legible postmarks of the U.S. Postal Service on or by the 20th of the month are considered timely. Metered mail is considered to be received as of the date the remittance is received in this office. You may email your report to our Occupancy Tax Department. The same due date applies to emailed reports.
The tax shown to be due must be paid by the 20th of the month or penalties will be charged. See North Carolina General Statute (NCGS) 105.236 for information regarding penalties. Penalties will be billed for late reports and or late tax remittances.
Payment should be made by check or money order. Make the check payable to the Chatham County Tax Department. One check for all locations will be accepted; however, a separate report for each location must be filed.
If you do not owe any tax for a month, you must still file a report showing "No Tax Due".
You must still file a report even if an on-line marketplace (airbnb, homeaway, expedia etc.) will be submitting the entire tax for a month. There is now a "checkbox" on the form in this case.
A report filed with the Chatham County Tax Department under this Ordinance is not public record as defined by Section 132-1 of the North Carolina General Statutes and may not be disclosed except as required by law. See NCGS 153A-155(d)
The Tax Office must be notified of a change in address, ownership, or if business operations cease.

Use of Online Marketplace Rentals

ENTIRE MONTH OF GROSS RECEIPTS ARE BASED ON ONLINE MARKETPLACE BOOKINGS: You must still file a monthly report even if all rentals were booked through an online marketplace company (airbnb, homeaway, expedia, etc). If this is the case, check the box located above the Computation of Occupancy Tax on the Tax Report Form.

PART OF THE GROSS RETAIL RECEIPTS INCLUDE ONLINE RENTALS: Use #3, in the Computation of Occupancy Tax on the Tax Report Form, to subtract the amount of the tax being submitted by one or more of the Online Marketplace Rental Companies.

Room Occupancy Tax Charges Notice

VERY IMPORTANT - PLEASE READ:

The Room Occupancy Tax Charges Notice published by the N.C. Department of Revenue provides detail on the types of retailers and charges subject to the Room Occupancy Tax. The State of North Carolina and Chatham County law requires a 3% occupancy tax to be collected from your guests if a home, a room in a home, a cottage, hotel/motel, B&B, vacation property or any other lodging is rented out for periods of less than 90 days.

NC Department Of Revenue - SUTB 6 (pg 48) - Accommodations*
*see SUTB 6-3 (pg 49) for "Fees or Charges Associated w/ the Rental of an Accommodation"

NCDOR - Rentals Accommodations

Occupancy Tax Purpose

Chatham County Occupancy Tax Resolution

On September 26, 1994, the Chatham County Board of Commissioners levied a room occupancy tax of 3% in accordance with Chapter 642 of the 1994 Session Laws of the North Carolina General Assembly (amended by 2007 Session Law SL 318). Section 1 of the Chatham County Board of Commissioners Resolution to levy the tax provides as follows:

a room occupancy tax of three percent (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 county that is subject to sales tax imposed by the State under General Statute 105-164.4(a)(3). This tax is in addition to any State or local sales tax.

This tax does not apply to accommodations furnished by nonprofit, charitable, educational or religious organizations when furnished for their nonprofit purpose OR to accommodations furnished to the same person for at least ninety (90) continuous days or more OR to accommodations furnished less than fifteen (15) days per year. Exception: The revenue from the rental of a private home, arranged through a rental agent, is now subject to room occupancy taxes even if the house is rented for less than fifteen (15) days in a year. This law became effective with S.L. 2014-3 in July 2014.

Contact

Chatham County, NC

Occupancy Tax

Angela McMahon - Paralegal
Chatham County Tax Office
angela.mcmahon@chathamcountync.gov