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

City Code § 2-2080 imposes and levies a tax of three percent of the gross receipts of any person, firm, corporation, or association subject to the state's three percent sales tax, derived from renting any sleeping room or lodging in a hotel, motel, or inn located in the City. The tax does not apply to a room, lodging, or accommodation supplied to the same person for 90 continuous days or more (§ 2-2080). Operators must, on or before the 15th day of each month, prepare and file a return covering the previous month's collections with the City Revenue Collector and remit the tax then due (§ 2-2081).

An operator who collects the tax may deduct a 1 percent discount from the amount remitted as reimbursement for collection expenses (§ 2-2081). Where a stay crosses the 90-day threshold, the hotel, motel, or inn may apply to the Revenue Collector for a deduction, or a refund if no tax is otherwise due that month, equal to the tax already paid on that room's receipts (§ 2-2082). The City retains three percent of the gross proceeds collected to cover its own administrative and collection costs (§ 2-2086), and the City Manager allocates the remaining net proceeds under Chapter 850 of the 1985 Session Laws and the Council-approved budget (§ 2-2087).