Realtors & Landlords
Is your property a vacation rental?
If so, are you aware that you are required to submit 3 percent of your gross receipts from renting your property to the
Town of North Topsail Beach?
Please read the information below:
North Carolina General Statute 105-164.4(a)(3) states that “Operators of hotels, motels, tourist homes, tourist camps, and similar type businesses and persons who rent private residences and cottages to transients are considered retailers. A tax at the general rate of tax levied on the gross receipts derived by these retailers from the rental of any rooms, lodgings, or accommodations furnished to transients for a consideration. This tax does not apply to any private residence or cottage that is rented for less than fifteen (15) days in a calendar year or to any room, lodging, or accommodation supplies to the same person for a period of 90 or more continuous days.”
The Town of North Topsail Beach has a tax in the amount of three percent (3%) on the gross receipts from the rental of accommodations within the corporate limits of the Town. The proceeds of the taxes levied shall be allocated for beach nourishment.
The tax is added to the rental cost of the unit and passed on to the tenant/renter. Any person who willfully attempts in any manner to evade the accommodation tax, who willfully fails to pay the tax, or file the return will be subject to penalties, fines and punishments as governed by G.S. 160A-215.
The Finance Officer shall design, print and furnish to all appropriate businesses and persons in the Town the necessary forms for filing returns, along with instructions to insure the full collection of the tax, and shall collect and administer the tax as provided in G.S. 160A-215 and in rules adopted by the Board of Aldermen from time to time.
If anyone has any questions regarding this tax, please call our office at 910-328-1349. Kim Weaver, the Town's Office Specialist, will be glad to assist you.
PLEASE NOTE: The Town is aware that some property owners use internet websites to place ads for their rentals. These sites are monitored and those who are not paying the accommodations taxes will be subject to penalties, fines and punishments.
Why is it Important to Pay These Taxes?
The 3% accommodation tax that is collected by North Topsail Beach goes to the Town's Shoreline Protection Fund which funds the Town's shoreline restoration and maintenance projects. The purpose of these projects is to reduce storm damage, provide habitat for turtles and other species, and to ensure that there is a wide recreational beach for years to come.
The bottom line is this: The more money that is collected as a result of the accommodation tax means the more money there is to restore and maintain the Town's beautiful shoreline and keep your visitors coming to NTB to stay. And remember, you are required to charge, collect, file and pay this tax. If you fail to do so, you are breaking the law and will be penalized.
N.C. Sales Tax is Also Applicable
(from NC Dept. of Revenue Website)
The gross receipts derived from the rental of an accommodation are subject to the general State and applicable local and transit rates of sales and use tax and any local occupancy tax imposed by a city, county, or special jurisdiction. Gross receipts derived from the rental of an accommodation include the sales price of the rental of the accommodation. The sales price of the rental of an accommodation is determined as if the rental were a rental of tangible personal property. The sales price of the rental of an accommodation marketed by a facilitator includes charges designated as facilitation fees and any other charges necessary to complete the rental.
For a business or person who is not registered with the Department and is required to collect and/or remit the sales or use tax on the rental of an accommodation, register online using the online business registration portal. Gross receipts derived from the rental of an accommodation and the sales and use tax thereon are to be reported to the Department on Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.
More info here.
Helpful Information for Renters
Solid Waste Removal - Leave a copy of the Solid Waste & Recycling Schedule for your renters. You may want to consider having separate waste baskets for them to separate the recyclables from regular trash.