Council approves referendum to ask voters about room occupancy tax

The Indian Trail Town Council voted unanimously to place a referendum on the ballot asking voters whether the town should levy a local room occupancy tax.

Town staff explained last year’s similar referendum failed and that state rules require a local enabling process and, if approved, the council would appoint a tourism board to advise on spending. Staff said the tax applies to hotels and similar short-term lodging (including Airbnbs) and that revenue must be used for tourism-related purposes; parks improvements and tournament marketing were cited as examples that typically qualify.

Council members debated whether to re-submit the question so soon after last year’s defeat. Some members said they preferred pausing because the measure had just been rejected by voters; others argued for an education campaign and said placing it on the ballot now would ensure the town can collect the tax if and when local hotels develop.

The council approved the resolution placing the question on the ballot and instructed the town clerk to notify the Board of Elections by the required deadline for the municipal election. Staff noted adding the question to the ballot does not by itself increase election costs beyond the town’s municipal election expenses; adding the referendum item carries no separate filing fee.

If approved by voters, council members said they expect the town to appoint a tourism board and follow statutory rules on eligible uses of occupancy tax revenue; staff emphasized the board and the town will follow state guidance on how funds must be used.