Buncombe County Plans $34.5 Million Tourism Budget Amid New Legislative Restrictions
The Buncombe County Tourism Development Authority (TDA) has unveiled its financial roadmap for the upcoming year, detailing an ambitious plan to utilize $34.5 million in tourism tax revenue. This decision coincides with a recently enacted law that introduces fresh constraints on how these funds can be allocated.
Governor Josh Stein’s recent approval of a law that puts new limits on the usage of occupancy tax revenue has reshaped the landscape for local tourism funding. The tax is collected from visitors staying in commercial accommodations, such as hotels and vacation rentals.
By statutory requirement, the TDA is obligated to allocate two-thirds of this revenue for tourism promotion and administrative purposes. The remaining one-third is designated for community capital projects. With a projected $34.5 million in occupancy tax revenue for the 2027 fiscal year, the TDA has earmarked $23 million for its operating budget, which encompasses promotional and administrative activities.
To support this budget, the TDA is drawing $4.1 million from its existing fund balance, elevating the total operating budget to $27.1 million.
For community capital projects, approximately $11.5 million will be divided between the Tourism Product Development Fund (TPDF) and the Legacy Investment from Tourism (LIFT) fund. These funds alternate in accepting project applications annually, with $12 million available for the latest LIFT project round set for decision in September.
New Law Governs Tourism Tax Spending
Under the newly signed Senate Bill 484, local authorities are restricted from using occupancy tax revenue for traditional government services like public safety and education. Despite previous community requests for these funds to address affordable housing, Vic Isley, president and CEO of Buncombe County TDA, affirmed, “I think Senate Bill 484 makes it very clear that you can’t use occupancy tax in the state of North Carolina for that purpose.”
Isley emphasized the TDA’s long-term contributions, having directed nearly $110 million towards tourism-related projects over 25 years, benefiting both residents and visitors. Projects range from greenways and parks to sports fields that serve local families and draw in external events.
During the state House vote, Buncombe Democrats Lindsey Prather and Brian Turner opposed the bill, while Eric Ager supported it. Similarly, Sen. Julie Mayfield was the only opposing vote in the Senate, advocating for broader use of occupancy tax dollars to address diverse community needs, including affordable housing for hospitality workers.
Senate Bill 484 emerged following a state Supreme Court decision permitting coastal Currituck County to allocate occupancy taxes for services like law enforcement. However, a separate legislative measure granted Currituck an exemption, enabling them to continue funding such services, despite the new law’s restrictions.
