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WATCH: Taxes and Tourism — Questions rise as $6M match explained

Officials say state law restricts spending to tourism promotion, not aid for local property owners

Here’s what happened at the April 6, 2026, Rutherford County Commissioners meeting, word-for-word, with no edits.

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By Annie Dance | Lake Lure News | Cops & Congress | News & Commentary

RUTHERFORDTON, N.C. — A claim of $60 million in tourism-related investment drew a sharp contrast Monday with the reality facing many storm-hit property owners, as county leaders acknowledged that most of those funds cannot be used to directly help residents rebuild.

During an April 6 meeting of the Rutherford County Board of Commissioners, Don Cason highlighted what he described as a major economic achievement.

“Rutherford County can brag and be proud that we have tourism assets related in the last six years, $60 million,” Cason said.

But that figure — representing parks, trails, and tourism infrastructure — comes with a limitation that officials repeatedly underscored: those dollars are largely locked into tourism by state law and cannot be redirected to help homeowners or small property owners recover from disasters like Hurricane Helene.

Cason serves in a dual role as Economic Development Director and Executive Director of the Tourism Development Authority (TDA).

Big investments, limited flexibility

Cason’s presentation focused on long-term tourism development, including projects funded through the Rutherford County Tourism Development Authority using occupancy tax revenue — a tax primarily paid by visitors staying in hotels and short-term rentals. The TDA relies on multiple vendors and contractors, such as Boone-based Destination by Design, to assist with their projects.

“It’s our job to market, promote Rutherford County as a place to visit,” Cason said.

That mission, however, defines how the money can be spent.

Under North Carolina law, occupancy tax revenue must largely go toward:

  • Marketing and advertising tourism

  • Promoting travel to the area

  • Tourism-related infrastructure and attractions

It cannot be used for direct financial assistance to residents, housing repair, or general government services.

That restriction creates a disconnect: while millions have been invested in tourism assets, those funds do not translate into direct aid for residents rebuilding homes, businesses, or personal property after a historic hurricane.

“We can’t put you back better”

That gap is especially visible in Chimney Rock, one of the communities hardest hit by Hurricane Helene.

Cason described widespread devastation and outlined a redevelopment vision that includes upgraded public spaces, walkways and riverfront improvements.

But even there, funding limitations remain.

“They told us, ‘We can’t put you back better,’” Cason said of the North Carolina Department of Transportation (NCDOT), explaining that state funding typically restores infrastructure only to pre-storm conditions.

However, NCDOT, Cason said, will fund road repairs and improvements known as betterments. Some news he shared stands in contrast to what I witnessed and reported at the last Chimney Rock town council meeting.

Tourism dollars can help enhance those spaces — but only in ways tied to attracting visitors, not compensating existing property owners who live and work in Rutherford County, unless they have a short-term rental or tourism-related business.

Do local taxpayers pay for tourism projects?

Officials stressed that tourism funding is separate from the county’s general budget.

Chairman Bryan King emphasized that occupancy taxes are largely paid by visitors, not residents, and are legally restricted.

That means:

  • Local property taxes do not fund tourism projects directly.

  • Tourism dollars cannot be shifted to cover local needs like housing or disaster relief.

However, the rules may be changed by state lawmakers in the future, pending the outcome of a Currituck County court case about occupancy tax money. Each county can ask the legislature for a modification. Some counties use funds for public safety staff, but Rutherford County does not, according to public records.

At the same time, residents still experience the broader impacts of those spending decisions — especially when major public-facing investments move forward while private recovery lags.

Recovery without direct relief

Cason said the tourism authority has continued all of its programs despite the storm.

“We have not eliminated anything,” he said.

That includes ongoing marketing campaigns and development initiatives aimed at bringing visitors back to Rutherford County.

The strategy, he indicated, is to rebuild the tourism economy as a pathway to broader recovery.

But for property owners dealing with immediate losses, that approach can feel indirect.

Tourism investments — even at $60 million — are designed to generate long-term economic activity, not provide short-term financial relief.

A structural divide

Monday’s discussion highlighted a fundamental tension in how recovery is funded.

On one side:

  • Tourism dollars are growing and being reinvested into attractions and infrastructure

  • Projects are designed to increase visitation and future revenue

On the other:

  • Residents rely on insurance, federal aid, or personal resources to rebuild

  • Local government funds — already strained by costs like a $700,000 jail system issue and rising foster care expenses — are limited

Because of legal restrictions, those two systems operate largely independently.

What the $60M represents — and what it doesn’t

Cason’s $60 million figure reflects cumulative investment in tourism-related assets over several years — including trails, parks and recreation facilities.

It does not represent cash available for distribution.

Nor can it be redirected to assist property owners, even in the wake of a disaster.

Instead, it represents long-term capital investment intended to drive visitor spending.

However, Cason said $6M in local tax dollars was required for the matching projects, including the recently completed Legacy Soccer Complex.

The soccer stadium is owned 50% by Rutherford County and 50% by the town of Forest City, with Forest City managing its day-to-day operations because it has a recreation department, while the county does not.

Transcript generated from the video by Annie Dance (accessibility note: Rutherford County does not caption their videos, in violation of the Americans with Disabilities Act for deaf people, making it impossible to understand what they’re saying live without using a third-party transcription tool)

Looking ahead

As Rutherford County continues to recover from Hurricane Helene, the gap between tourism investment and direct resident relief is likely to remain a point of tension.

Officials say both are necessary — but governed by different rules.

Tourism leaders are tasked with bringing visitors back and rebuilding the county’s economic engine.

Residents, meanwhile, are left navigating a separate path to recovery, one that does not directly benefit from the millions already committed to tourism infrastructure.

All budget amendments and agenda items at Monday’s meeting were approved unanimously.

Current commissioners include Chairman Bryan King, Vice Chair Alan Toney, Mike Benfield, Donnie Haulk, and Hunter Haynes, who joined by phone. King also serves as interim county manager. On the far left of the screen is Richard Williams, county attorney.

For more information, read the transcript in the player above, or on DocumentCloud. You may access the agenda packet on DocumentCloud or in the story below.

🏛️ All those mentioned are presumed innocent until proven guilty.
Annie Dance is the publisher of Cops & Congress, a newsletter that analyzes what happens when crime, courts, disaster, democracy, and small-town policies collide. Views expressed here are covered by the First Amendment. Dance has a Bachelor of Arts from Manhattan University in Communication with a focus in Journalism and Government. She has been a journalist for over 20 years.

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