RALEIGH, N.C. (May 22, 2026) – The North Carolina Restaurant & Lodging Association strongly opposes a recent North Carolina Supreme Court decision that threatens the long-standing framework ensuring local occupancy taxes are used to promote tourism and strengthen the state’s hospitality economy.
“Justice Anita Earle’s decision undermines 30 years of legislative intent that has helped North Carolina grow as a tourism destination. This decision will do great harm to the tourism industry that employs over 200,000 North Carolinians. It also raises the question of whether NCRLA members should ask the legislature to repeal existing occupancy taxes if they will no longer be used for tourism purposes,” said Allen Thomas, NCRLA’s President & CEO.
North Carolina is the 5th most visited state in the country for tourism. Domestic and international visitors to the state generated $37.2 billion in spending in 2025. State tax receipts from visitor spending rose 2.0% to nearly $1.4 billion and $1.3 billion in local tax receipts growing over 2.6% in 2025. Direct tourism employment rose 0.3% to 230,997 and each North Carolina household saved $605 on average in state and local taxes as a direct result of visitor spending in the state.
This is due in large part to North Carolina’s nation leading occupancy tax system and this misguided decision puts North Carolina’s tourism leadership at threat.
