The North Carolina Supreme Court sided with Currituck County in the final ruling of a lawsuit initiated by some Corolla property owners and a civic association that challenged the county’s spending of occupancy tax funds.

In the case of Costanzo et al v. Currituck County, the NC Supreme Court unanimously ruled that Currituck County may use occupancy tax revenues to fund public safety services. The case was heard by the NC Supreme Court on February 17, 2026.

Prior to a lower court ruling against Currituck County in 2024, occupancy tax helped to pay for public safety services.

In its Opinion, the Court asserts:

“Recognizing that communities must be safe for tourists to want to visit and return can hardly be said to be whimsical or lacking in understanding of surrounding facts or controlling principles…Indeed, the Commissioners seemed to approach their application of discretion under the statute with a healthy dose of common sense.”

Citizens may read the NC Supreme Court’s May 22, 2026, ruling here: Opinion of the Court