White Lake commissioners decline to pursue occupancy (lodging) tax now after expert briefing

Chris Kavanaugh, identified as president of the board of the North Carolina Travel Industry Association and a longtime consultant on occupancy-tax structure, told the White Lake Board of Commissioners on Feb. 10 that a municipal occupancy (lodging) tax would require community-specific legislation and a local Tourism Development Authority to oversee collection and spending. "I'm not here to advocate, for a a lodging tax," Kavanaugh said, adding that statewide guidance typically requires at least two-thirds of revenue be used to promote tourism and up to one-third for tourism‑related expenditures.

Mayor Dalton Wawbel said the board would need to weigh outreach to impacted local businesses before proceeding. After questions about how a town tax would interact with a possible county tax, Kavanaugh described options: the county could levy a tax for unincorporated areas, the town could keep a municipal-only tax, or jurisdictions could combine into a countywide TDA with rewritten enabling legislation in Raleigh.

A commissioner moved that staff be advised not to proceed with the occupancy-tax process; the motion passed by voice vote with five in favor and one opposed. Commissioners who supported the motion cited concern for local businesses and the risk that a countywide tax could divert funds away from White Lake priorities. One commissioner warned that if the county moved forward independently, the town could lose control of funds useful for marketing and local events.

The presenters offered to serve as resources and to answer additional questions. The board did not adopt any enabling ordinance or resolution at the meeting; staff had requested direction on whether to notify local business owners and gather input for a future meeting. The matter will return to the agenda only if the board directs staff to pursue outreach or if enabling legislation is proposed in the General Assembly.