Room Occupancy Tax revenue in New Hanover County has skyrocketed in New Hanover County since 2019, thanks to the popularity and proliferation of short-term rentals in Wilmington and area beach towns.
Since 2019, New Hanover County financial reports indicate occupancy tax revenue has increased from $7.2 million in fiscal year 2019 to $11.4 million if fiscal year 2023.
This 59.6% increase demonstrates the strength of the short-term rental market as a growing source of revenue for area governments.
Room occupancy taxes, also known as hotel/short-term rental occupancy taxes, are assessed on hosts who operate hotels or short-term rentals.
In New Hanover County, the rate is 6% for unincorporated areas of the county. In incorporated areas, New Hanover County charges 3%, with an additional 3% assessed by the city or town.
We will be reporting the financial windfall other local governments receive from their own occupancy taxes in the coming weeks, including Wilmington, Wrightsville Beach and other beach towns.
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