North Carolina

IMPORTANT RESOURCE(S)

• Vacation Rental Act

KEY DEFINITIONS

• Advanced payments. All payments made by a tenant in a vacation rental agreement to a landlord or the landlord's real estate broker prior to occupancy for the purpose of renting a vacation rental property for a future period of time as specified in the vacation rental agreement.
• Landlord. An owner of residential property offered for lease as a vacation rental with or without the assistance of a real estate broker.
• Real estate broker. A real estate broker as defined in G.S. 93A-2(a).
• Residential property. An apartment, condominium, single-family home, townhouse, cottage, or other property that is devoted to residential use or occupancy by one or more persons for a definite or indefinite period.
• Vacation rental. The rental of residential property for vacation, leisure, or recreation purposes for fewer than 90 days by a person who has a place of permanent residence to which he or she intends to return.
• Vacation rental agreement. A written agreement between a landlord or the landlord's real estate broker and a tenant in which the tenant agrees to rent residential property belonging to the landlord for a vacation rental. (1999-420, s. 1; 2016-98, s. 1.1; 2017-102, s. 13.1.)

LICENSING REQUIREMENTS

• The North Carolina Court of Appeals ruled in Schroeder v. City of Wilmington that state law prohibits a registration requirement for short-term rentals.

TAX INFORMATION

• The gross receipts derived from the rental of an accommodation are subject to the general State and applicable local and transit rates of sales and use tax and any local occupancy tax imposed by a city, county, or special jurisdiction. Gross receipts derived from the rental of an accommodation include the sales price of the rental of the accommodation. The sales price of the rental of an accommodation is determined as if the rental were a rental of tangible personal property. The sales price of the rental of an accommodation marketed by a facilitator includes charges designated as facilitation fees and any other charges necessary to complete the rental.
• Gross receipts derived from the rental of an accommodation and the sales and use tax thereon are to be reported to the Department on Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.
• NC Department of Revenue: Rental of Accommodation Information
• NC General State and Local Sales and Use Tax Rates

FIRE & SAFETY

• North Carolina State Building Code

CONNECT WITH VRMA MEMBERS

• North Carolina Vacation Rental Managers Association (NCVRMA)
• Chapel Hill Short-Term Rental Alliance

LEGISLATIVE SESSION

• The North Carolina General Assembly (NCGA) is made of two bodies or houses; the Senate, which has 50 members; and the House of Representatives, which consists of 120 members. Each legislator represents either a Senatorial District or a House District. The term of office for Senate and House of Representatives members is two years.
• The General Assembly meets in regular session beginning in January of each odd-numbered year, and adjourns to reconvene the following even-numbered year for a shorter session.
• The Senate and the House of Representatives meet in their respective chambers on Monday evenings and during the day on Tuesday, Wednesday, and Thursday. The members return to their homes to take care of their affairs and be available to their constituents during the weekend. During the week, committee meetings are held in the morning and late afternoon. A great deal of the legislative work is done in the committee meetings.
• About the NC General Assembly
• NC General Assembly News
• NC General Assembly Calendars
• NC Senate Information
• NC House Information
• Find Your Legislators
• Search Bills & Laws

COURT CASES

• Schroeder v. City of Wilmington