News Summary
Raleigh and Wake County have revealed plans to utilize $23.5 million from hospitality tax revenues to support community development projects. The funding will enhance recreational facilities, parks, and community spaces, benefiting both residents and visitors. Proposals are being accepted until November 6, 2023, with final funding decisions anticipated by February 2026. This initiative aims to promote local engagement and tourism in the region, building on past successful projects funded by the hospitality tax.
Raleigh and Wake County Announce $23.5 Million in Hospitality Tax Funding for Community Projects
Raleigh, North Carolina — The City of Raleigh and Wake County have announced plans to distribute $23.5 million in hospitality tax revenue to fund various community development projects. The funding aims to enhance recreational facilities, parks, and community spaces across Wake County, supporting initiatives that benefit residents and visitors alike.
Details of the Hospitality Tax and Funding Process
The hospitality tax comprises a 6% tax on hotel stays and a 1% tax on food and beverage purchases within Wake County. These revenues have historically supported numerous public projects over the past twelve years. To date, a total of 18 projects have been funded through this mechanism, totaling more than $21 million. This year, the available funds amount to $23.5 million, which will be allocated to qualifying projects that meet specific criteria.
Proposals for project funding are currently being solicited and must be submitted by November 6, 2023. A joint team composed of representatives from Raleigh and Wake County will review all submissions and develop recommendations. The final decision on funding allocations is expected to be made by the Wake County Board of Commissioners and the Raleigh City Council, with votes scheduled for February 2026.
Notable Projects Supported by Hospitality Tax Revenue
Historically, the hospitality tax has funded important community projects, including Ting Park, which received $1 million in 2013. Another prominent recipient is Eagles Landing Park in Holly Springs, which was awarded $2.3 million in 2022. This park development includes an indoor recreation center and various outdoor sports facilities. The recreation center will feature four basketball courts and eight volleyball courts, aiming to serve local athletes and community members.
Eagles Landing Park’s outdoor amenities will include two multipurpose turf fields, locker rooms, concessions, and additional outdoor recreational spaces, making it a comprehensive athletic hub. Holly Springs officials and residents emphasize the community benefits of such parks, including increased safety and social opportunities for people with special needs.
In addition to Holly Springs, Morrisville’s Church Street Park has also benefited from hospitality tax funding. A $258,000 award in 2016 supported improvements including new lighting, which has made the park a popular venue for cricket matches. Approximately 200 local teams utilize Church Street Park, helping to boost local business sales during match days and community events.
Other Significant Projects and Economic Impact
Past projects funded by hospitality tax monies include Pleasant Park in Apex, the Marbles Museum, Triangle Aquatic Center, and Cary Tennis Park. These initiatives have contributed to fostering community engagement and promoting tourism in the region. The expansion of the Raleigh Convention Center is underway to accommodate larger events, supporting the city’s economic development efforts.
The Greater Raleigh Sports Alliance has booked 476 future events, which are projected to generate an estimated $220.2 million in economic impact. Such events draw visitors from outside the region, benefitting local hotels, restaurants, and retail establishments. Local businesses have reported increased foot traffic and higher revenue following major events and tourism activities.
Tourism and Hospitality Industry Highlights
In 2023, Wake County’s hospitality industry demonstrated strong growth. The county’s hospitality tax generated $87.5 million, marking a 5.7% increase over the previous year. The county’s hotel occupancy tax brought in $41 million in 2023, representing a 7.7% increase from 2022. Wake County’s hotel occupancy rate for 2024 was reported at 69.7%, surpassing both state and national averages, reflecting robust tourism activity.
Major events and conventions continue to underpin the local economy. These gatherings attract visitors who spend on hotels, dining, and entertainment, thereby supporting local businesses. The ongoing expansion of the Raleigh Convention Center aims to capitalize on this growth by offering additional meeting space and event capacity.
Conclusion
The ongoing investment of hospitality tax revenues in community projects signals a commitment to enhancing public amenities and supporting economic growth in Wake County. With proposals currently being accepted for 2023 funding, residents and organizations are encouraged to participate to help shape the future development of recreational and community spaces in the region.
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Additional Resources
- ABC11: Wake County City Raleigh Seeking Submissions for Hospitality Tax Revenues
- Hoodline: Wake County and Raleigh Seek Visionary Projects for $23.5 Million Hospitality Tax Revenue Boost
- Axios: Wake County’s Tourism Tax Brought in a Record Amount Last Year
- Wikipedia: Hospitality Tax
- Encyclopedia Britannica: Tax
Author: STAFF HERE RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
