Understanding all the relevant regulations and tax rules when running an Airbnb or vacation rental can be overwhelming. However, it’s increasingly important to ensure that you are fully compliant with any laws for your area at the city and state level.
As the vacation rental market matures, local governments and tax collection authorities are getting wiser to how much money is being made by hosts and striving to ensure they get their cut. Hotel companies are also lobbying for more compliance to ensure they aren’t put at an unfair advantage when they pay their lodging taxes.
Between the increasing pressure on local governments to crack down on party houses and other ‘bad actors’ in their vacation rental communities and the rapid growth of vacation rental market supply and demand it is likely there will be plenty more regulations introduced.
The best advice we can give you is to make sure you know the rules for your property back-to-front, and ensure you’re licensed and paying taxes, or you could be liable for fines and/or removal from vacation rental marketplaces like Airbnb. That would be a good way to destroy your vacation rental empire before it even gets started
North Carolina is a state in the Southeastern region of the United States. North Carolina is the 28th largest and 9th Atlantic Ocean to the east, Georgia and South Carolina to the south, and Tennessee to the west.
With sandy beaches and majestic mountain views, North Carolina boasts a diverse array of landscapes and pleasant year-round weather that appeal to all types of travelers.
From the microbreweries and art galleries in Asheville to epic hikes in the Blue Ridge Mountains, North Carolina offers the perfect blend of outdoor adventure and Southern charm. Vacation rentals in North Carolina include luxury treehouses, cozy mountain cabins, oceanfront properties, and more.
Guests who book Airbnb listings that are located in the State of North Carolina will pay the following taxes as part of their reservation:
North Carolina Sales Tax: 6.75-7.5% of the listing price including any cleaning and guest fees for reservations less than 90 nights. The State imposes both a statewide 4.75% tax and a local 2-2.75% tax, which varies by county. For detailed information, visit North Carolina's website.
City and/or County Occupancy Tax: All locally imposed occupancy taxes will be collected on reservations in North Carolina. The tax varies by city and county. It is typically 1-8% of the listing price including any cleaning and guest fees for reservations less than 90 nights.
Find out more about how occupancy tax collection and remittance by Airbnb works.
Note: Hosts located in these areas are responsible for assessing all other tax obligations, including state and city jurisdictions. Hosts with listings in these areas should also review their agreement with Airbnb under the Terms of Service and familiarize themselves with the Occupancy Tax provisions which allows them to collect and remit taxes on their behalf and explain how the process works.
If a host believes applicable laws exempt the host from collecting a tax that Airbnb collects and remits on the host's behalf, the host has agreed that, by accepting the reservation, the host is waiving that exemption. If a host does not want to waive an exemption the host believes exists, the host should not accept the reservation.
The Charlotte-Mecklenburg Police Department maintains a free registry for both short- and long-term rentals located in Charlotte city limits. Registration is mandatory for owners of properties that meet certain “disorder risk” thresholds and voluntary for all others. Find out more about the registration of residential rental property.
Hosts with listings in Charlotte are encouraged to register, as the service allows owners, as well as property managers, to be contacted regarding incidents that may be attributed to the registered property and to receive email alerts regarding training and other safety initiatives.
Charlotte’s Zoning Ordinance regulates most land uses in the city. You should consult it to see if your listing is consistent with zoning requirements or use definitions. Relevant terms include:
Charlotte requires all people doing business in city borders to obtain a business license. Please review the city’s website on business-related licensing and permitting and Chapter 13 of the Charlotte Code of Ordinances for more information. A fire inspection is required as part of the approval process, and the city’s Planning, Design & Development Depart will review the application for compliance with city rules and regulations.
Charlotte enforces rules and regulations specifying minimum construction, design, and maintenance standards for buildings, including regulations on habitability, health, and safety. Certain rules and regulations applicable to residential and non-residential uses may be relevant to your listing. Please review Chapters 5 and 12 of the Charlotte Code of Ordinances and the Mecklenburg County Code Enforcement website for more information.
The County of Mecklenburg assesses room occupancy taxes on rents charged for accommodations in hotels, motels, corporate housing, and similar places such as private homes for less than 90 days. In addition, the State of North Carolina assesses sales tax on the gross receipts received from such rentals. Airbnb collects and remits the Mecklenburg room occupancy tax and the North Carolina sales tax in Charlotte. Find out more about this process.
It's also important to understand and abide by other contracts or rules that bind you, such as leases, condo board or co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable.
Airbnb is committed to working with local officials to help them understand how Airbnb benefits the community. Where needed, they will continue to advocate for changes that will allow regular people to rent out their own homes
2021 brought a big change to North Carolina’s capital city. Previously, short-term rentals were considered illegal businesses, but that all changed following a 7-to-1 vote to implement new short-term rental and Airbnb laws.
It appears the city is gradually adopting regulations from their previous total ban starting with special permits. The following short-term rental and Airbnb laws go into effect today, March 4, 2021:
Every short-term rental operator should first apply for and procure a zoning permit from the City. Zoning permits must be renewed annually.
In residential zoning districts, short-term renters should not utilize the premises for holding special events or gatherings.
Short-term rental operators should comply with all applicable state and local laws, including those relating to fire and building codes, smoke detecting and carbon monoxide detecting equipment, housing codes, and payment of taxes to appropriate governmental entities, including occupancy taxes.
Every short-term rental operator should maintain for a period of three years a list of all short-term rental lodgers on the premises.
The zoning permit number authorizing the short-term rental should be conspicuously posted on all advertisements for short-term rentals, and the subject property.