Economic Development in Watauga County, North Carolina

Taxes

Watauga County has long been known as a pro-business environment. As a result, we are fortunate to have one of the lowest tax rates in the South, and the lowest property tax rate in North Carolina. The local lodging tax of 3% is one of the lowest in the region, as well.

District (per $100 valuation)

Watauga County $0.313
Boone $0.37
Blowing Rock $0.28
Seven Devils $0.51
Beech Mountain $0.55
Municipal Service District (Downtown Boone area, King Street Corridor) $0.21

Sales Tax – Effective December 1, 2006

6.75% (4.25% State & 2.5% Local)

North Carolina Corporate Income Tax

6.9%

Lodging Tax

6% - Watauga County, Blowing Rock, Seven Devils, & Beech Mountain
3% - Boone

Sales and Use Tax

For retail or wholesale merchants in the business of selling, renting or leasing taxable personal property, a Merchants Certificate of Registration is required. Contact the Department of Revenue:

NCDOR, Sales and Use Tax Division
501 N. Wilmington Street, Raleigh, NC 27634
(919) 733-3661

Privilege License Tax

Tax for the privilege of doing business in the state of North Carolina, applying only to certain types of ventures. To see if you qualify, check with DOR:

NCDOR, License & Excise Tax Division
P.O. Box 25000, Raleigh, NC 27640
(919) 733-3673

Franchise and Income Tax

This is an annual corporate tax for the privilege of doing business in the state of North Carolina.
NCDOR, Corporate Income & Franchise Tax
501 N. Wilmington Street, Raleigh, NC 27634
(919) 733-3166

Ad Valorem Taxes

Business personal property must be listed with the Watauga County Assessor’s Office.
(828) 265-8036

Licenses

North Carolina is a very pro-business state, and as such, there is no general license for doing business in North Carolina. The following sections contain licensing information for the various areas where licenses are necessary.

State of North Carolina

Sales and Use Tax - (919) 733-3661

For retail or wholesale merchants in the business of selling, renting or leasing taxable personal property, a Merchant’s Certificate of Registration is required. Contact the Department of Revenue:

NCDOR, Sales and Use Tax Division
501 N. Wilmington Street, Raleigh, NC 27634

Watauga County

Planning and Inspections (828) 265-8043

Watauga County has partial county zoning, and there are certain other regulations such as high-impact and sub-division regulations, to name a few. Building permits, certificates of occupancy, license fee schedules and request forms for final inspections obtained from the Watauga County Department of Planning & Inspections.

Sole Proprietor or Partnership

File an Assumed Name Certificate ($14.00) with the Watauga County Register of Deeds (828.265-8052) and with any other counties in which you plan to do business.

LLC’s, LLP’s and Corporations

File an Assumed Name Certificate in each county that you plan to do business, and register with the Secretary of State, Corporations Division.

Food and Human Services

The Watauga County Health Department (828.264.4995) inspects both food sales and preparation facilities such as restaurants and cafeterias, and human services facilities such as child and adult daycare centers.

Local Towns

Check with the town Permitting agency for applications for building permits, certificates of occupancy, license fee schedules and request forms for final inspections.

• Boone (828) 262-4540

• Blowing Rock (828) 295-5231

• Beech Mountain (828) 387-4236

• Seven Devils (828) 963-5343

Alcohol Sales & Permitting

North Carolina Alcohol Beverage Commission (ABC)

Though Watauga County is a dry county, several towns have elected to allow beer, wine and liquor sales. There are also special stipulations that allow the sale of alcohol, or BYOB status, depending on location and qualifications. For off-premise sales, beer and wine only may be sold in convenience and grocery stores. Liquor must be purchased at the local ABC store. Contact the state ABC board to obtain a temporary state ABC license (919) 779-0700.