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Occupancy Tax

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Do you own short term rental property in Chatham Co?   

If you rent out your home, a room in your home, a cottage or vacation property for periods of less than 90 days, the State of North Carolina and Chatham County law requires you to collect a 3% occupancy tax from your guests.  The notice published by the N.C. Department of Revenue provides further detail on the types of retailers and charges subject to the Room Occupancy Tax.  

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.

General Filing Information:

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 (it is the responsibility of the property owner to be sure the on-line rental service is collecting, and submitting, the tax on their behalf). 

  • 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)
  • The Tax Office must be notified of a change in address, ownership, or if business operations cease.

Occupancy Tax 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.

Related links:

Business Personal Property (you may need to file a business personal property listing form for your business)
Return Check Penalties
B&B Checklist
Planning & Zoning
Central Permitting & Inspections
Environmental Health
NCDOR - Rentals - Accommodations
NCDOR - Notice - Room Occupancy Tax Charges

Pittsboro-Siler City Convention & Visitors Bureau
Explore Chatham Co brochure

Should you have any questions or require additional information contact

Angela McMahon - Paralegal
Chatham County Tax Office
919-542-8224
P.O. Box 697, Pittsboro N.C. 27312
angela.mcmahon@chathamnc.org