If you rent your home for 1 to 90 continuous days, you must collect and remit North Carolina Sales and Use Tax as well as Dare County Occupancy Tax. The state legislation through the North Carolina General Assembly authorized Dare County to charge Occupancy Tax on the gross rent received for rooms, lodging, and accommodation rentals. The Occupancy Tax rate in Dare County is currently 6% of the gross amount of the rent.
Property Owners or their rental Agents who rent their properties for accommodations including VRBO, Airbnb, HomeAway, Trip Advisor, etc. on a short-term basis for a stay of 1 to 90 continuous days must collect and remit occupancy tax from the renter. The funds must be held in a trust account until you make payment to Dare County. Reports and payments must be paid by the 15th of each calendar month. The tax does not apply to a private residence or cottage that is rented less than 15 days in the calendar year.
The Occupancy Tax is distributed according to the state statute as follows:
-3% is distributed to the Towns and Dare county for tourist related purposes such as construction and maintenance of public facilities and buildings; garbage; refuse; solid waste collection and disposal, police protection and emergency services.
-1% distributed to the Outer Banks Visitors Bureau for administration and to promote tourism. 1/4th of this money must be used for service or programs needed due to the impact of tourism on Dare County.
-2% is used for beach nourishment. Additional information can be found about Dare County Occupancy Tax at www.darenc.com Additional information can be found about NC Sales and Use tax at www.dornc.com