Occupancy Taxes
The Occupancy Tax rate for Chowan County is five percent (5%) of gross receipts derived from the rental of room, lodging, campsite, or similar accommodation furnished by any hotel, motel, inn, or similar place within the county. The room Occupancy Tax also applies to rooms or houses rented by individuals or companies through websites including, but not limited to, Airbnb, VRBO, Windu, Rooorama, etc. The tax does not apply to accommodations furnished by nonprofit charitable, educational, benevolent or religious organizations when furnished to further their nonprofit purposes. This also 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 supplied to the same person for a period of ninety (90) or more continuous days.
Administration
The Chowan County Tax Office administers an Occupancy Tax levied under various NC General Statutes. A tax levied under this act is due and payable to the county tax collector in monthly installments on or before the fifteenth (15) day of the month following the month in which the tax accrues.
Every person, firm corporation, or association liable for the tax shall, on or before the fifteenth (15) of each month, prepare and render a return on a form prescribed by the county. The return shall state the total gross receipts derived in the preceding month from rentals and sales upon which the tax is levied.
A return filed with the Chowan 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.
Every three (3) years each rental will be audited to ensure compliance and complete reporting. Chowan County will utilize a third party auditing company to complete these audits. Each audit will cover the previous thirty-six (36) months.
Failure to Report and/or Pay
Any person, firm, corporation or association who fails to file a return on the date it is due as required by this act shall pay a penalty equal to five percent (5%) of the amount of the tax due if the failure is for not more than one (1) month, with an additional five percent (5%) for each additional month or fraction thereof not to exceed twenty-five percent (25%) in the aggregate, or ten dollars ($10.00), whichever is greater.
Any person, firm, corporation or association who fails to pay the tax on the date is is due shall pay a penalty equal to ten percent (10%) of the amount of the tax due. Failure to both file AND pay the tax as required by this act shall result in imposition of BOTH penalties.
If you do not owe any tax for a month, you must still file a report showing "No Tax Due" to our office.
Failure which is determined to be negligent, willfull, or fraudulent will result in increased penalties and potential punishment as a Class I misdemeanor. G.S. 105-236.
Enforcement
The Chowan County Tax Office has the authority to utilize attachment, garnishment, levy, set-off debt collection, civil suit and/or criminal misdemeanor prosecution for non-compliance and non-payment. After a forced assessment letter and bill has been sent out, each rental will have thirty (30) days to respond or appeal. If the return and/or payment has not been received on or beofore the thirtieth (30) day past the date of the assessment letter, the above referenced enforced collection actions will begin.
Calculating Occupancy Taxes Due
Gross Receipt total from prior month x 5% = Total Tax - 3% (cost of collection) + ___ _penalty (if applicable)= Total Remitted to Chowan County
Occupancy Tax Reporting Forms
Occupancy Taxes must be paid by cash or check
Authorization and Distribution for the 5% Occupancy Tax rate
3% (three percent) Room Occupancy Tax
- Authorization House Bill 787,1989 Session, General Assembly of North Carolina Effective June 1, 1989
- Distribution to the Tourism Development Authority must be used to promote travel and tourism in Chowan County, to sponsor tourist-oriented events and activities in Chowan County, and to finance tourist-related capital projects in Chowan County
3% of the total remittance submitted is kept by Chowan County for the administration and collection of this tax and placed in the County's General Fund
Additional 2% (two percent) Room Occupancy Tax
- Authorization House Bill 1269, 2006 Session, General Assembly of North Carolina Effective July 20, 2006
- Distribution is as follows:
2/3 of the funds remitted must be used to promote travel and tourism in Chowan County
The remainder of the funds remitted must be used for tourism-related expenditures
3% of the total remittance submitted is kept by Chowan County for the Administration and collection of this tax and placed in the County's General Fund