When you step into the voting booth on November 5, you will find a ballot initiative question about whether to approve a 5% occupancy tax in the Town of Indian Trail. To ensure everyone has the information they need to make informed decisions, we’ve put together a few resources to help you!
Frequently Asked Questions
What is the Occupancy Tax?
An occupancy tax, also called a “hotel tax” or “lodging tax,” is a tax charged to people who stay hotels, inns, bed and breakfasts, or other similar establishments within a town.
Who pays the tax?
This tax applies to visitors staying in hotels or short-term rentals, such as an Airbnb, within Indian Trail. Residents are only responsible for paying the tax if they stay in one of these accommodations.
What will this proposed tax pay for?
According to NC law, occupancy tax revenues can only be used for tourism-related purposes, including promoting tourism and travel. Other communities use occupancy taxes to pay for event venues, sporting arenas, or recreational spaces. Indian Trail could use the revenues to invest in tourism-related amenities, such as enhancing our parks and recreational amenities, a future multigenerational community center, and supporting downtown business development.
What other communities have an Occupancy Tax?
Most cities, especially those near places frequently traveled for tourism or business, have an occupancy tax. This includes 90 counties and 110 municipalities in North Carolina, such as our neighbors in Monroe. When you travel, you are most likely paying an occupancy tax to another community.
If the Town doesn’t have a hotel, why is an Occupancy Tax on the ballot?
Indian Trail already has approximately 50 short-term rental properties, such as Airbnb, in the Town that could begin generating occupancy tax revenue. Additionally, the Town of Indian Trail believes it is important to plan for the future. While the Town does not have a hotel now, the plan is to have one (or more) in the future. When that time comes, the occupancy tax will already be in place so the Town and its residents can benefit from it.
Is this ballot referendum the same as a bond or other form of debt service?
NO. The occupancy tax will be a new dedicated revenue stream and will require no debt service or bonds. Additionally, it will NOT impact residents’ property taxes.
Where can I learn more?
To fully understand the details and potential impacts of the Occupancy Tax Proposal, please visit https://indiantrail.org/1808/Occupancy-Tax or call 704-821-5401.