Earlier this year, the North Carolina General Assembly authorized the Town of Indian Trail to hold an occupancy tax referendum. The Indian Trail Town Council has voted to place this referendum on the Nov. 5, 2024, ballot. As such, the November ballot includes a proposal for up to a 5% occupancy tax that would fund tourism-related initiatives, such as recreational amenities for residents and visitors, as well as promote travel and tourism.
To answer questions and provide more information about the occupancy tax referendum, the Town of Indian Trail is hosting an informational Community Meeting on Tuesday, Oct. 8, from 4-6 p.m. in the Shirley Howe Community Room in the Town Hall. It is a drop-in event with no formal presentation. Residents are encouraged to stop by the Town Hall to learn more about the occupancy tax.
What is an Occupancy Tax?
An occupancy tax, also known as a lodging tax or room tax, would be paid for by visitors to Indian Trail who stay in short-term rentals, such as an Airbnb or a future hotel located within the Town limits. Most cities in the United States have an occupancy tax, including 90 counties and 110 municipalities in North Carolina.
How can the Town Use the Funds Generated by the Occupancy Tax?
Per North Carolina law, occupancy tax revenues can only be used for tourism-related purposes, including promoting tourism and travel. If the occupancy tax passes, Indian Trail plans to use the funds to invest in tourism-related amenities, such as enhancing the Town’s parks and recreational spaces, creating a future multi-generational community center, and supporting downtown business development.
How Will an Occupancy Tax Benefit Indian Trail?
The occupancy tax would provide a new, dedicated revenue stream that is not funded by taxpayers. It would allow the Town to enhance its amenities for residents and visitors to enjoy, as do many of the Indian Trail’s neighboring communities. For example, Monroe received more than $800,000 in occupancy tax revenue to promote travel and tourism and other tourism-related expenses.
Why is it on the Ballot Now?
The Town of Indian Trail has been working with the NC General Assembly for years to shepherd this ballot initiative through the legislative process. It was recently approved for inclusion on the ballot in this November’s general election. The Town Council voted to put the question to voters in this November’s election.
“The Town of Indian Trail believes it is important to plan for the future,” said Mayor David Cohn. “An occupancy tax would provide the Town of Indian Trail with additional revenue to improve our community without putting the burden on our taxpayers. When we travel, other communities benefit from the occupancy taxes we pay. We want our residents to be able to benefit in the same way.”
For more information about the Occupancy Tax, visit https://indiantrail.org/1808/Occupancy-Tax.