If you rent your home, you are required to remit, to Village of Bald Head Island, the 6% occupancy tax. The revenue generated from this mandatory tax is set aside in a restricted Capital Project Fund to be used for the repair and maintenance of Bald Head Island beaches. The rental cost is multiplied by six percent (6%), and this amount is remitted monthly on the 20th day of the month following the month in which the tax was collected.
A report must be filed each month whether or not your home is rented. The tax shown to be due must be paid with the report or the following penalties and interest will attach: ten percent (10%) of the tax, except that the penalty shall not be less than five dollars ($5.00); a five percent (5%) penalty for any person who refuses to file the return or pay the tax for a period of thirty (30) days after the time required for filing the return. There is also an additional penalty of five percent (5%) for each additional month or fraction thereof until the tax is paid.
If a rental agency handles your property, then the agent will, for all monies they collect, levy, collect and report the tax. However, if you rent you property individually, then it shall be your responsibility to file the report and pay the accommodations tax.
Please remember that persons or agencies who fail or refuse to file the required tax shall be required to pay a penalty. Any person or agency who willfully attempts in any manner to evade the tax will be guilty of a misdemeanor.
Note : In addition to the taxes which must be remitted to the Village, taxes are also due to the State of North Carolina in the amount of seven percent (7%) of the gross rental income. In order to procure remittance information you may view the following website and download Application form AS/RP1: www.dor.state.nc.us .
!
IMPORTANT NOTICE !
Accommodation Taxes: It
has come to the attention of the tax administrator that there
are homes rented privately which are not in compliance with Village of Bald Head Island. Please be aware that these homes
listed as rentals are being investigated individually. It is
important to note that if you rent your home you are required to
remit a room occupancy tax to Village of Bald Head Island as
well as to the State of North Carolina Department of Revenue.
There are several penalties associated with renting your home
and then failing to comply with tax remittance guidelines. Any
questions regarding this tax or the collection of same should be
directed to the Tax Administrator during regular business
hours. Furthermore, if you are aware of a homeowner who
solicits the rental of their home as a “vacation home that
doesn’t include taxes” then please notify the Tax Administrator
immediately.
Forms
If you are a new homeowner, please complete the Rental Property Information form and submit it to the Tax Administrator as soon as possible.
I
f you are a new property owner, please complete the New Property Information form and submit it the Tax Administrator as soon as possible.
