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North Carolina Local Sales Tax Proposed to Save Beaches


Emerald Isle, North Carolina is requesting “…that the N.C. General Assembly approve special local legislation authorizing the town to levy a new 1-percent ‘beach preservation tax’ on all sales and use transactions within Emerald Isle provided town voters approve the proposed tax in a referendum.”

The goal of the proposal, according to Town Manager Frank Rush, “…is to ensure funding in the face of uncertain state contributions to beach nourishment projects.” But first, they have to have legislation in place that allows the town to request approval from the residents to impose the tax. This might “…set a precedent and could result in other municipalities seeking a similar authority….”

However, Rush feels the beach nourishment effort is unique. “Currently, the town relies on a combination of funding sources for beach nourishment, with about 50 percent provided by proceeds from the portion of the Carteret County room occupancy tax that is restricted to beach projects and another 25 percent coming from the proceeds from special district property taxes levied by the town for beach projects.

The remaining 25 percent has traditionally come from the state.” But the state has begun to deny funding requested for beach nourishment projects due to lack of funds. The proposed tax is only one of three proposals:

  • Forego the state contribution and conduct beach nourishment projects with an average of $700,000 less available each year;
  • Double the current 4.5 cent and 1.5 cent special district property tax rates to replace the lost state funds; or
  • Gain approval for the sales tax levy on all local sales and use tax transactions.

The estimation and expectation is that the sales and use tax could bring in the $700,000 expected to be lost from state funds.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”