As part of Union County’s continued growth and development, two municipalities—Indian Trail and Stallings—are holding referendums that could impact their future tourism and economic strategies. Both towns are asking residents to vote on whether to levy a new occupancy tax of up to 5% on accommodations within their respective jurisdictions. This initiative was made possible through a law passed by the North Carolina General Assembly, which allows both towns to hold referendums on whether to adopt this tax. You can read the full statutory language here. While the details for each town slightly differ, the ultimate goal is the same: to generate revenue that can be reinvested into the community, specifically in tourism-related areas.
What is an Occupancy Tax?
An occupancy tax is a tax levied on the rental of accommodations, such as hotels, motels, and short-term rentals. This tax is typically added to the cost of a room or lodging rental, and the revenue generated is used to fund local tourism development initiatives. Many towns and cities across North Carolina, including Monroe, already benefit from this type of tax. The proposed occupancy tax for both Indian Trail and Stallings is up to 5% of the gross receipts derived from the rental of these accommodations, in addition to any state or local sales taxes already in place.
What Could the Occupancy Tax Fund?
If approved, the revenue generated from the occupancy tax will be directed towards tourism-related efforts in each town. According to the statutory language, at least two-thirds of the tax proceeds must be used to promote travel and tourism. This can include a variety of activities such as advertising and marketing campaigns, publishing materials that attract tourists and business travelers, or even funding local events that draw visitors. The remaining funds can be used for tourism-related capital expenditures—improvements to meeting or convention facilities, community centers, and investments designed to boost the overall appeal of the town to visitors.
Indian Trail’s Unique Position
Though Indian Trail currently does not have any hotels within its borders, its proximity to Charlotte makes it a prime location for future hotel development. Once a hotel is built, the occupancy tax will be in place, allowing the town to immediately begin benefiting from the revenue it generates. If Indian Trail voters approve the occupancy tax, they will be positioning the town to leverage future lodging developments to generate additional revenue. This forward-thinking approach could help the town fund tourism and infrastructure projects as the local hospitality industry grows.
The ballot for Indian Trail reads as follows: “The levy of a room occupancy tax in the amount of up to five percent (5%) of the gross receipts derived from the rental of an accommodation located within the town.”
[ ] FOR
[ ] AGAINST
Stallings’ Opportunity
The town of Stallings is similarly considering an occupancy tax, which would apply only to the portion of the town that falls within Union County. The revenue generated from this tax would be funneled into the Stallings Tourism Development Authority, with a focus on promoting travel and tourism and supporting tourism-related expenditures in the district. Much like Indian Trail, Stallings is eyeing the future, with the occupancy tax as a tool to ensure it has the resources to support tourism-driven economic development.
The ballot language for Stallings reads as follows: “The levy of a room occupancy tax in the amount of up to five percent (5%) of the gross receipts derived from the rental of an accommodation located within the part of the Town of Stallings that is in Union County.”
[ ] FOR
[ ] AGAINST
How Could These Taxes Impact Residents and Businesses?
The primary goal of the occupancy tax is to generate revenue from visitors, not from residents or local businesses. However, the funds collected could ultimately benefit the community by improving local infrastructure, increasing tourism, and boosting economic development. For businesses, especially those in hospitality and tourism, this added revenue can help create a more vibrant local economy by attracting more visitors and events to the area.
Make Your Voice Heard
The occupancy tax referendums for both Indian Trail and Stallings provide an opportunity for residents to influence the future direction of their towns. The ability to vote on important local matters is a privilege, and your participation is essential in shaping the future of our community. We encourage all eligible voters to engage in this decision and make their voices heard this November.
Last modified: October 7, 2024
