Overview: Are Short-Term Rentals Allowed in Murphy, NC?

Yes, short-term rentals are explicitly allowed in Murphy, NC. Properties rented for fewer than 90 days are subject to state and county regulations, including tax collection and registration. There is no evidence of a city-level ban on STRs in Murphy itself.

How to Start a Short-Term Rental Business in Murphy, NC

1. Research Zoning: Confirm STRs are permitted in your property's specific zoning district. While not banned, restrictions may apply based on local zoning laws. Consult Cherokee County Planning (828-837-5527) for specifics.
2. Register for Taxes: Register your property with the Cherokee County Finance Office (contact details below) to collect and remit the required occupancy tax.
3. Understand State Requirements: Comply with the NC Vacation Rental Act (contracts, safety standards) and any relevant state tax obligations. Monitor SB667 for potential changes.
4. Secure Insurance: Obtain liability and property insurance appropriate for commercial short-term rental operations (homeowner's policies often exclude this).
5. Adhere to Standards: Ensure your property meets all applicable health, safety, and building codes.

Required Documents, Permits, Licenses, and Guidelines

• Occupancy Tax Registration (Mandatory): Registration is required with Cherokee County Finance Office (as per county law) before collecting taxes. See contact details.
• NC Vacation Rental Act Compliance (Mandatory State Law):
  • Written Agreement: A written rental agreement is required, detailing terms, responsibilities (guest responsibility for cleanliness, damage), and the property's use.
  • Safety Standards: Ensure working smoke detectors, carbon monoxide alarms, fire extinguishers, and clear emergency exits.
  • Proof of Permanent Residence: Guests must have another permanent residence to return to (definition of "vacation" use).
• Local Business License (Possibly Required): While not explicitly mentioned for Murphy, check with the Murphy Town Hall (828-837-4210) to confirm if a general local business license is needed for STR operations.
• State Sales Tax Registration: If you take direct bookings (not solely via platforms like Airbnb/Vrbo), register with the NC Department of Revenue for state sales tax collection on lodging (4.75% state rate). Many platforms remit this automatically.
• Lodging/Occupancy Tax Returns: File monthly returns with Cherokee County Finance Office (even with zero sales), reporting and remitting the 4% occupancy tax. Forms are provided by the Finance Office upon registration.

Specific Regulations

Cherokee County (Murphy is in Cherokee County)

1. Occupancy Tax (4%):
   • Mandatory Collection: Charged on all rentals < 90 days.
   • Additional Tax: This tax is in addition to NC state sales tax.
   • Registration: Required before operation with County Finance Office.
   • Filing: Monthly filing is mandatory, even with zero sales.
   • Remittance: Submit collected tax to County Finance Office.
   • Penalties:
     • Late Filing: 5% penalty for first month, additional 5% per month (max 24%) or $5, whichever greater.
     • Late Payment: 10% penalty or $5 minimum.
     • Willful Non-Compliance: Class 1 Misdemeanor.
     • Evasion Attempt: Class H Felony.
     • Audit: County Finance Officer can audit records.

City of Murphy

• No Specific STR Ordinance Found: The provided content does not contain evidence of city-specific short-term rental regulations beyond zoning (e.g., permits, bans, density limits). Murphy follows Cherokee County's occupancy tax rules.

State of North Carolina

1. NC Vacation Rental Act (G.S. 42A):
   • Definition: STRs are defined as rentals of residential property for vacation/recreation for < 90 days to guests with a permanent residence.
   • Focus: Primarily regulates the owner-guest relationship via mandatory written contracts covering key terms (payments, use, liability, duration < 90 days, guest responsibilities).
   • Safety: Imposes some responsibilities (e.g., keeping premises safe, providing key information).
   • No Statewide Ban: NC does not prohibit STRs.
2. State Tax Obligations:
   • State Sales Tax (4.75%): Applies to the rental charge for lodging. If booking directly (not via platform), you are responsible for collecting/remitting this.
   • Local Sales Tax (varies): May apply depending on location.
   • Marketplace Facilitators: Platforms (Airbnb/Vrbo) often collect/state sales tax on your behalf.
3. Senate Bill 667 (Stalled): Proposed significant changes (e.g., banning cities from prohibiting STRs). Currently stalled – state law is still fragmented by local ordinances.

Contact Information for Local Authority

• Cherokee County Finance Office (Handles Occupancy Tax Registration & Filing):
  • Phone: 828-837-2130
  • Address: 75 Peachtree Street, Murphy, NC 28906
  • (Part of the larger County Administration – main phone 828-837-5527)
• Cherokee County Tourism Development Authority (Manages Occupancy Tax Funds): Contact via County Administration or Finance Office.
• Murphy Town Hall (Verify Business License Needs):
  • Phone: 828-837-4210
  • Address: 100 W. Murphy Rd, Murphy, NC 28906
  • Website: (Not provided in sources – check Cherokee County NC.gov site)
• NC Department of Revenue (State Sales Tax Registration):
  • Website: https://www.ncdor.gov/
  • Phone: See NCDOR website for local offices.

Links to Source Pages

• Cherokee County Occupancy Tax Information: https://www.cherokeecounty-nc.gov/DocumentCenter/View/286/Rental-Accommodations-Occupany-Tax-Information-PDF
• NC Vacation Rental Act (G.S. 42A): https://www.ncleg.gov/Laws/GeneralStatuteSections/Chapter42A
• NC Senate Bill 667 (Proposed Changes - Stalled): https://www.ncleg.gov/Sessions/2023/Bills/Senate/PDF/S667v1.pdf
• NC Department of Revenue: https://www.ncdor.gov/