Wake County staff brief commissioners on hospitality‑tax structure, upcoming competitive funding round and Cary indoor sports project

Michael James, a Wake County staff presenter, reviewed the county’s hospitality‑tax framework and upcoming decisions during the board’s April 14 work session.

Lede: James told commissioners that the tax program — established under state enabling acts and governed by an interlocal agreement with the City of Raleigh — funds arts, culture and major facilities and that the next competitive funding round will take place in late 2025 with a stakeholder review following by mid‑2026.

Nut graf: Hospitality taxes (the 6% occupancy tax and the 1% prepared food and beverage tax) flow through an interlocal agreement (ILA) and are distributed first to statutorily required recipients and debt service; after those mandatory distributions, remaining funds are split (the presentation cited an 85% share for the Raleigh convention center complex and 15% to a competitive/section‑3 fund). County staff said occupancy receipts are outperforming the projections used in the most recent ILA amendment while prepared food and beverage collections are running below those projections by roughly $400,000.

What staff told commissioners

- Legal and governance background: James reviewed the 1991 and 1995 state enabling legislation…