Is Oak Island still a smart place to buy or hold a beach rental? One of the clearest signals sits in plain sight: the town’s occupancy tax collections. If you understand what those receipts measure, you can read seasonality, growth, and even risk. In this guide, you’ll learn how Oak Island’s 5 percent accommodations tax works, what it can reveal about demand, where to find the numbers, and how to turn them into rough revenue estimates. Let’s dive in.
What the occupancy tax shows
Oak Island charges a total 5 percent accommodations tax on stays shorter than 90 days. The town allocates 3 percent for tourism and tourism‑related spending and 2 percent for beach protection and renourishment. Owners or their rental agents file and pay monthly, with returns due by the 20th of the following month. You can review filing rules and contacts on the town’s Accommodations Tax page on the Town of Oak Island website.
Why tax receipts signal rental demand
Because the tax is a percentage of gross rental receipts, collections typically rise with more nights booked, higher nightly rates, longer stays, and more active listings. Month‑to‑month receipts also show clear seasonality, with summer months driving the biggest share. For regional context, Brunswick County visitor spending reached about $1.17 billion in 2023, which supports demand for Oak Island short‑term rentals across the county’s coastal towns, according to county tourism reporting.
How to read the numbers like an investor
You can use the town’s receipts to estimate the market’s gross lodging revenue and then sanity‑check your assumptions for a specific property.
- Find the official figures. Look for annual and monthly accommodation tax receipts in the town’s budget documents on the Budget Information page.
- Convert tax to gross revenue. Estimated gross taxable lodging receipts equal total occupancy tax divided by 0.05. Example for illustration: if annual tax receipts were $2,000,000, then gross lodging revenue would be about $40,000,000.
- Back into room‑nights. Divide gross revenue by an assumed average daily rate to estimate total nights sold. Using a $300 ADR in the example, room‑nights would be roughly 133,333. Treat this as a ballpark, not a forecast.
Cross‑check with market metrics
Pair town receipts with third‑party short‑term rental metrics for Oak Island, such as estimated ADR, occupancy rate, and listing counts from providers like AirRoi. These datasets vary by method and date range, but they help triangulate demand alongside tax data. See example market pages on AirRoi.
Limits and blind spots to keep in mind
Occupancy tax totals are a helpful proxy, but not perfect.
- Not all hosts file correctly, and towns sometimes improve compliance, which can lift receipts without a true demand change. Local meeting summaries often flag these shifts, as seen in council coverage.
- Platforms differ in what taxes they collect and remit on behalf of hosts. Confirm current platform behavior and your filing duty with the town’s finance office.
- Definitions of taxable “gross receipts” can exclude or treat certain fees differently. Always reference Oak Island’s guidelines on the Accommodations Tax page.
What rising or falling receipts could mean
When you see a change, interpret it with context.
- If receipts rise
- More nights booked or higher ADR
- Better tax compliance or identification of unregistered listings
- New events, favorable weather, or added lodging capacity
- If receipts are flat or fall
- Fewer bookings, lower ADR, or fewer active listings
- Storms or travel pattern shifts
- Reporting lags or platform remittance changes
Before drawing conclusions, check budget notes or ask the finance office whether any compliance or platform policy changed in the period. Meeting recaps can offer early clues, such as those noted in local coverage, but confirm with official sources.
Beach funding and your bottom line
Oak Island dedicates 2 percent of the tax to beach protection and renourishment. That funding supports multi‑year nourishment work that helps sustain the shoreline visitors come for, which in turn supports rental demand. For context on project status and planning, review recent reporting on the town’s nourishment efforts in this overview.
Buyer and owner next steps
- If you are buying an STR: Pull the town’s latest receipts, estimate gross lodging revenue using the 5 percent rate, then test your pro forma with conservative ADR and occupancy assumptions. Cross‑check with third‑party metrics and seasonality.
- If you own or plan to sell: Lean into peak‑season readiness. Condition, presentation, and marketing matter when demand surges. Our team can coordinate prep, staging, and listing launch so you capture the strongest weeks.
Ready to evaluate a specific Oak Island property or position your rental for peak season? Connect with TurnkeyRealty for a local, data‑driven plan and a seamless, end‑to‑end experience.
FAQs
What is Oak Island’s accommodations tax rate and who files?
- Oak Island charges a total 5 percent on stays under 90 days, and owners or their agents file monthly by the 20th. See rules and contacts on the town’s Accommodations Tax page.
Do occupancy tax totals predict my property’s income?
- They are a useful town‑level demand signal, not a property‑level forecast. Pair tax receipts with ADR and occupancy estimates from sources like AirRoi and your calendar assumptions.
Why might Oak Island’s tax receipts jump year over year?
- Increases can reflect stronger demand or better compliance. Check meeting notes for context, such as local recaps, then verify with the town’s budget documents or finance staff.
How do I estimate revenue from a tax total?
- Divide total occupancy tax by 0.05 to approximate gross lodging receipts, then divide by your assumed ADR to estimate room‑nights. Label the result as an estimate and note assumptions.
Where can I find official occupancy tax numbers?
- The town posts budget PDFs and related reports on the Budget Information page. These are the authoritative sources.
How does the tax support Oak Island beaches?
- Of the 5 percent, 2 percent is dedicated to beach protection and renourishment, which funds shoreline projects highlighted in recent project updates.
