PROVIDE ROOMS FOR RENT IN SOUTH CAROLINA? WHAT YOU NEED TO KNOW ABOUT ACCOMMODATIONS TAX
PROVIDE ROOMS FOR RENT IN SOUTH CAROLINA? WHAT YOU NEED TO KNOW ABOUT ACCOMMODATIONS TAX
South Carolina's summer is in full swing, and tourists are renting rooms in hotels, inns, homes, and sites in campgrounds for their vacation.
If you provide rooms for rent in South Carolina, the South Carolina Department of Revenue (SCDOR) offers information to help ensure you meet your tax requirements. You may be required to pay the state Accommodations Tax, a 2% tax added to a 5% Sales Tax and any local tax. Proceeds are distributed back to cities and counties and are to be used for tourism advertising and tourism-related expenditures.
For the fiscal year ending June 30, 2020, the amount collected in Accommodations Taxes topped $65 million, with Horry, Charleston, and Beaufort counties accounting for more than $44 million of the total amount collected. Accommodations Taxes are paid in all 46 counties.
Generally, the person or business who provides the accommodations is responsible for collecting and paying the tax. If an online travel company handles reservations and accepts payments, it is responsible for the tax. Service fees charged by an online travel company are considered part of the cost of a rental and are subject to the tax.
Who does not have to pay Accommodations Tax:
- Those who rent a room in the house in which they live if the house has less than six bedrooms, as long as the owner does not use a rental agency or online travel company to rent rooms.
- Those who rent to the same person for more than 90 continuous days.
- Those who provide accommodations directly billed to and paid by the federal government, the American Red Cross, federal credit unions, or charitable children's hospitals.
Accommodations Tax returns are due by the 20th of the month following the end of the business's filing period (month, calendar quarter, or year). Use MyDORWAY at dor.sc.gov/MyDORWAYto file and pay online.
For more information about Accommodations Tax, visit the SCDOR's website at dor.sc.gov/accommodations and check out this handout.
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