Mebane, NC Hotels & Lodging: Transient Occupancy Tax (2026)

Mebane City Code Sec. 2-201 creates and levies a room occupancy tax of three percent of the gross receipts derived from the rental of an accommodation within Mebane's corporate limits that is subject to the state sales tax imposed under G.S. 105-164.4(a)(3), the state provision that reaches hotels, motels, and other short-term accommodation rentals. Adopted by Ordinance No. OA-24-01 on April 8, 2024, the tax became effective July 1, 2024, per Sec. 2-205. Under Sec. 2-202, the tax is due from the accommodation retailer, the party defined by G.S.

105-164.4, and is payable to the City of Mebane in monthly installments no later than the 20th day of the month following the month in which the tax accrues. Every liable person, firm, corporation, or association must, by the 20th of each month, prepare and file a return on a city-prescribed form stating total gross receipts from the preceding month's taxable rentals. The city collects the tax and, on a quarterly basis under Sec. 2-203, remits the net proceeds to the Alamance County Tourism Development Authority, which must spend at least two-thirds of Mebane's share on tourism-related expenditures that directly benefit Mebane.

Net proceeds are defined in Sec. 2-204 as gross proceeds less the city's administration and collection cost, capped at three percent of the first $500,000 collected each year and one percent of the remainder. Room occupancy tax returns filed with the finance officer are confidential and not public record.