North Carolina beach towns face tighter budget constraints after Governor Josh Stein signed a law restricting how local leaders can spend hotel tax revenue.
Senate Bill 484 bans municipalities from using room occupancy taxes to fund core public services, including law enforcement, fire protection, trash pickup, and affordable housing. Backed heavily by the hospitality industry, state lawmakers pushed the restrictions to ensure lodging taxes are spent strictly on tourism promotion.
The move is a direct rebuke to a recent state Supreme Court ruling that allowed coastal counties to use tourism taxes for public safety.
Local leaders in affected areas warn the restrictions could eventually force them to raise local property taxes to pay for peak-season emergency services.
