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Occupancy Tax

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Do you own short term rental property in Chatham County?  Picture2

If you rent out your home, a room in your home, a cottage or vacation property for periods of less 90 days, the State of North Carolina and Chatham County law requires you to collect a 3% occupancy tax from your guests.  

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: The Board of Commissioners does hereby levy and impose 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.  

Note: If you rent your property using online rent by owner sites, you still must collect and remit 3% occupancy taxes to Chatham County or be in violation of North Carolina law. The Room Occupancy Tax also applies to rooms or houses rented by individuals through websites including, but not limited to, Airbnb, HomeAway, VRBO, Windu, Rooorama, etc.  If you have entered into an agreement with an online service to be a  "member" or  "host" of any online property rental venues, you would have agreed to that company's terms of service and/or terms and conditions.  Please retain a copy of the agreement because failure to comply with local, state and federal tax laws also means you are violating the terms of service and/or terms and conditions of the online company with which your property is listed.  

Please read the notice published by the N.C. Department of Revenue, which provides further detail on the types of retailers and charges subject to the Room Occupancy Tax.  

General Filing Information:

For assistance in completing the room occupancy tax collection form or questions regarding occupancy tax, please call the Chatham County Tax Department at 919-542-8224 and ask for Angela McMahon.

  • 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".
  • 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)

Purpose

All proceeds of the tax are legally required to be used to promote travel and tourism.  We all benefit from having more visitors and tourists come to our county. The Pittsboro-Siler City Convention & Visitors Bureau is fully funded by the three percent occupancy tax paid by overnight visitors and collected by local lodging facilities. Click here to visit the Pittsboro-Siler City Convention & Visitors Bureau or here for a copy of the brochure

Chatham County Occupancy Tax Department contact information:

Angela McMahon
Chatham County Tax Paralegal
P.O. Box 697, Pittsboro N.C. 27312
919-542-8224

Return Check Penalties

NCGS 105-236 states: "When the bank upon which any uncertified check tendered to the Department of Revenue in payment of any obligation due to the Department returns the check because of insufficient funds or the nonexistence of an account of the drawer, the Secretary shall assess a penalty equal to ten percent (10%) of the check, subject to a minimum of one dollar ($1.00) and a maximum of one thousand dollars ($1,000). This penalty does not apply if the Secretary finds that, when the check was presented for payment, the drawer of the check had sufficient funds in the account at a financial institution to pay the check and, by inadvertence, the drawer of the check failed to draw the check on the account that had sufficient funds.

 

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