General Occupancy Tax FAQ’s

What is occupancy tax? The occupancy tax is a fee assessed on visitors who stay overnight in lodging accommodations for periods shorter than 90 days. 

Who pays the occupancy tax? The occupancy tax is paid by visitors staying overnight in Haywood County lodging properties—including hotels, motels, bed and breakfasts, cabins, and short-term rentals such as Airbnb and VRBO. Visitors also pay state sales tax on their overnight stays. Residents do not pay this tax unless they rent a room or property for an overnight stay. 

Approximately 77% of Haywood County visitors are from out-of-state, with top contributing states including Florida, Georgia, South Carolina, and Tennessee. Additionally, about 33% of visitors come from other regions of North Carolina, with leading areas including Charlotte, Raleigh-Durham, Greensboro-Winston Salem, Wilmington, and Greenville-New Bern. 

Who collects and oversees the occupancy tax? All lodging properties in Haywood County that charge guests for accommodations must collect the occupancy tax and remit it to the Haywood County Finance Department. These funds are then transferred monthly to the Haywood County Tourism Development Authority (HCTDA), which oversees their allocation. The HCTDA Board—comprised of local stakeholders and elected officials—ensures that funds are invested in accordance with state legislation and the Haywood County Destination Master Plan. 

How does Haywood County’s occupancy tax compare to other counties? Haywood County’s occupancy tax is set at 4%, which is below the state maximum of 6%. Approximately 85% of North Carolina counties already collect the maximum allowable rate under state law. 

How are occupancy tax funds used? Funds generated by the occupancy tax are invested in initiatives aligned with the newly adopted Haywood County Destination Master Plan. These investments include: 

• Enhancing tourism marketing efforts to drive steady, year-round visitation and bolster economic impact for small businesses. 

• Supporting the development of new and improved tourism infrastructure. 

• Benefiting residents by funding projects that improve the quality of life in Haywood County, such as parks, trails, and cultural attractions. 

Do residents benefit from the occupancy tax? Yes, they do. The occupancy tax is paid by visitors, but the revenue directly benefits residents by: 

• Improving public amenities such as trails, parks, and cultural attractions. 

• Stimulating economic activity, which creates jobs and supports local businesses. 

• Funding strategic investments that enhance Haywood County as both a destination and a community. 

Lodging Property FAQ’s

How do I know if I need to remit Occupancy Tax? All accommodations within the County that are subject to the state sales tax, as imposed under G.S. 105-164.4(a)(3), are also subject to Occupancy Tax. This tax is set at four percent (4%) of the gross receipts obtained from the rental of such accommodations. It’s important to note that this Occupancy Tax is applied in addition to any state and local sales taxes, and it is calculated based on gross room sales.

There are a couple of exceptions to this rule. The tax doesn’t apply to accommodations rented to the same individual for ninety (90) or more consecutive days. Also, if a private residence or cottage is rented out for less than 15 days within a calendar year, the tax doesn’t apply.

Who do I need to speak with about NC Sales Tax? You can contact the NC Department of Revenue at 1-877-252-3052 or www.dornc.com.

How do I get started if I do need to pay Occupancy Tax? Fill out the online Haywood County Lodging & Occupancy Tax Registration Form.

When is Occupancy Tax due? Occupancy Tax payments and associated forms are due on or before the 20th of every month, corresponding to the sales made in the previous month. For instance, the Occupancy Tax for sales made in July (1st-31st) must be remitted on or before August 20th. If the 20th falls on a weekend, the due date extends to the following Monday. When sending payments and forms via mail, it’s crucial to ensure they are postmarked by the due date. In cases where there’s no postmark, the received date will be considered as the date the payments and forms were actually delivered to the Haywood County Finance Office.

What charges/fees are included in Gross Receipts/Sales? Gross receipts or sales encompass any and all fees charged to the visitor. This includes, but is not limited to, the following:

• Room rental
• Credit card fees
• Damage fees
• Early/late departure fees
• Extra person charge
• In-room safe rentals
• Inspection fees
• Linen fees
• Maid/cleaning fees
• Pet fees
• Reservation/handling/processing/ administrative fees
• Security deposits
• Smoking fees
• Transfer fees
• Tentative reservation fees
• Charges for cribs and roll-away beds
• Charges for microwave ovens and refrigerators

What are the accepted payment methods? Currently payments are accepted in the form of cash, check or money order physically delivered or mailed to the Haywood County Finance Office.

You can also pay online with your credit card. Go to www.webfeepay.com , click on make a payment and then choose the appropriate category in each field. Please note that a 3% convenience fee will be calculated and added to your occupancy tax payment for this service, and there is a minimum fee of $1.00. This fee goes directly to the online provider.

What if I use an online service (such as Expedia, AirBnb, VRBO, etc) for my reservations? Do I still have to pay Occupancy Tax? Regardless of the reservation platform used, the property owner is always responsible for ensuring that the Occupancy Tax is collected and remitted to Haywood County for all relevant sales and fees. Some online platforms may collect and remit the Occupancy Tax on behalf of the property owner at the time of reservation, while others may pass the collected tax to the owner for remittance. It falls upon the property owner to communicate with these online platforms and ascertain the extent of their involvement in Occupancy Tax handling.

If a third-party platform collects and remits the Occupancy Tax for transactions at your establishment, you won’t need to remit any tax for those specific sales. The monthly remittance form provides an option to subtract these transactions before calculating the due tax.

If your establishment is collecting tax through a third-party platform and you would like to have your property listed on VisitNCSmokies.com, please complete the Haywood County Accommodation Information Form and note on the form where your taxes are being collected.

It’s important to note, in case of an audit, the property owner is required to furnish documentation proving that a third-party platform had remitted the Occupancy Tax for any sales that the owner didn’t directly pay tax on.

What do I do if the same tenant stays in the same room for 90 days? If an accommodation is rented to the same individual for 90 or more continuous days, it is exempt from the Occupancy Tax. Any tax collected from the renter before reaching this 90-day continuous stay should be refunded to the renter.

Once the renter has been refunded the tax, the accommodation establishment is entitled to claim a credit for the refunded tax. This claim is made in the Cccupancy Tax return due to the County for the month in which the refund was made.

Are rentals of campsites or RV sites that provide power and/or water subject to occupancy taxes? No, rentals of basic campsites, RV sites, and boat slips are not subject to occupancy taxes. The tax is specifically applicable to “accommodations,” as defined by G.S. 105-164.4(a)(3), which includes “a hotel room, a motel room, a residence, a cottage, or a similar lodging facility for occupancy by an individual.” This definition implies that the rental must provide some form of lodging structure for the renter to stay overnight.

If the rental of basic campsites, RV sites, or boat slips does not include any lodging structure, they are exempt from the tax. However, if a campsite rental comes with a tent or similar structure, or if it’s a houseboat rental, the tax applies.

Do non-profits, religious institutions or corporations have to pay occupancy taxes? No. This tax does not apply to accommodations furnished by nonprofit charitable, educational, benevolent, or religious organizations. 

Is special insurance required to rent my home as a short-term rental? It’s recommended that you consult with your home insurance provider to determine if your policy aligns with short-term rental practices. Some short-term rental platforms do offer their own insurance, but it’s crucial to confirm this fits your needs.

How to register/set up an account ? You must register your rental property with the Haywood County Finance Office and the Haywood County Tourism Development Authority. The registration and annual renewal form can be found here.

How to request a tax penalty waiver? If a person, firm, corporation, or association is liable for penalties, they may request a waiver in accordance with the Occupancy Tax Penalty Waiver Policy. The waiver should be submitted in writing to the HCTDA Executive Director, specifying the reasons for the delay in payment and any supporting documentation. Requests must be submitted within 30 days of the date when the penalty was applied, or will be ineligible for waiver consideration. The HCTDA will review the request and respond in writing within 60 days of receiving the request. 

Who do I contact with questions?

Questions about paying the tax:
Kelley Mosser, Haywood County Finance Office
Kelley.Mosser@haywoodcountync.gov
828.356.2614
215 N Main St., Waynesville NC 28786

Questions about the HCTDA:
Corrina Ruffieux, HCTDA Executive Director
Corrina@VisitHaywood.com
828.944.0761
91 North Lakeshore Drive, Suite 2, Lake Junaluska, NC 28745

A return filed with the Haywood County Tax Collector under this act is not a public record as defined by G.S. 132-1 and may not be disclosed except as required by law.