Effective immediately charge 12.75% tax on all rentals beginning 9/1/09.
6.75% shall be submitted to the state and 6% to Bald Head Island.
If you rent your home, you are required to remit to
The Village of Bald Head Island
A 6% room occupancy tax.
The revenue generated from this mandatory tax is set aside in a restricted Capital Project Fund to be used for the repair and maintenance of Bald Head Island beaches.
The rental cost is multiplied by six percent (6%), and this amount is remitted monthly on the 20th day of the month following the month in which the tax was collected.
A report must be filed each month whether or not your home is rented. The tax shown to be due must be paid with the report or the following penalties and interest will attach:
· Ten percent (10%) of the tax, except that the penalty shall not be less than five dollars ($5.00);
· Five percent (5%) penalty for any person who refuses to file the return or pay the tax for a period of thirty (30) days after the time required for filing the return.
· There is also an additional penalty of five percent (5%) for each additional month or fraction thereof until the tax is paid.
If a rental agency handles your property, then the agent will, for all monies they collect, levy, collect and report the tax. However, if you rent you property individually, then it shall be your responsibility to file the report and pay the accommodations (room occupancy) tax.
Please remember that persons or agencies that fail or refuse to file the required tax shall be required to pay a penalty. Any person or agency who willfully attempts in any manner to evade the tax will be guilty of a misdemeanor. In addition to the taxes which must be remitted to the Village, sales and use taxes are also due to the State of North Carolina. Please visit www.dornc.com for instructions on how to file the tax.
! IMPORTANT NOTICE ! UPDATED
It has come to the attention of the tax administrator that there are homes rented privately which are not in compliance with Village of Bald Head Island. Please be aware that these homes listed as rentals are being investigated individually. It is important to note that if you rent your home you are required to remit a room occupancy tax to Village of Bald Head Island as well as to the State of North Carolina Department of Revenue. There are several penalties associated with renting your home and then failing to comply with tax remittance guidelines. Any questions regarding this tax or the collection of same should be directed to the Tax Administrator during regular business hours. Furthermore, if you are aware of a homeowner who solicits the rental of their home as a “vacation home that doesn’t include taxes” then please notify the Tax Administrator immediately.
IMPORTANT SALES TAX NOTE! UPDATED
Increase in State Sales and Use Tax Rate
The 2009 North Carolina General Assembly has enacted legislation that provides for a temporary additional 1% State sales and use tax effective September 1, 2009 and will expire on July 1, 2011. Senate Bill 202 was ratified by the House of Representatives and the Senate on August 5, 2009 and has been signed by Governor Perdue.
As a result of the additional 1% State rate increase, the combined State and county tax rate will increase to 8.25% in Mecklenburg County, 8% in Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson, and Surry Counties, and 6.75% in the remaining ninety-one counties.
The combined general rate of tax, which applies to telecommunications service, ancillary service, video programming, and spirituous liquor other than mixed beverages, is the State’s general rate plus the sum of the rates of local tax authorized for every county in the State. Therefore, since the additional 1% has been temporarily increased, the combined general rate will increase to 8% in all counties, including Mecklenburg County, until July 1, 2011.
Effective immediately charge 12.75% tax on all rentals beginning 9/1/09. 6.75% shall be submitted to the state and 6% to Bald Head Island.