1. What is Hospitality Tax and why is it necessary?
Hospitality Tax is a tax imposed on the purchase of prepared or modified food and/or beverages intended for immediate consumption and on the charges for accommodations furnished to transients. The tax was created by ordinance of Georgetown County Council to provide a dedicated source of revenue and an appropriate and efficient means of funding new & renovated tourist-related buildings, cultural, recreational and historic facilities, improved beach access and beach renourishment, highways, roads, streets, and bridges providing access to tourist destinations, advertisements and promotions related to tourism development, and water and sewer infrastructure to serve tourism-related demand throughout Georgetown County.
2. Who is responsible for collecting and remitting the Hospitality Tax?
The business establishment is responsible for collecting this tax from patrons and is required to remit such collections to the County of Georgetown. The failure to collect taxes does not relieve any business from making the required remittances to Georgetown County.
3. How should the tax be remitted?
Taxes should be remitted to Georgetown County Finance Department by the 20th of each month for the prior month total collections. The taxes shall be remitted monthly when the estimated amount of average tax is more than fifty dollars a month, on a quarterly basis when the estimated amount is twenty-five to fifty dollars a month, and on an annual basis when the estimated amount of average tax is less than twenty-five dollars a month. Each remittance must include a completed Hospitality Tax Return Form and a copy of the South Carolina Sales Tax Computation Form. For zero gross sales, the Hospitality Tax Return Form must be remitted indicating zero gross amounts. Businesses collecting taxes from multiple locations should complete a reporting form for each location.
4. What if my tax payment is late?
Remittances are considered delinquent if postmarked by the U S Postal Service after the 20th of the following month. If the due date of the return falls on Sunday or an U.S. Post Office holiday, the return is considered timely filed if it has a postmark by the U.S. Postal Service on (or before) the day immediately following that Sunday or U.S. Post Office holiday. A penalty payment of five percent (5%) will be due for each month, or portion thereof, on all taxes not received by the due date. Penalties will accumulate to a maximum of 100%.
5. What is the penalty for violation of this ordinance?
The penalty for violation of this ordinance shall be 5% per month, charged on the original amount of taxes due, up to a maximum of 100%. Additionally, violators may be deemed guilty of a misdemeanor, subject to a $500 fine and/or imprisonment for up to thirty (30) days for each violation of this Ordinance.
6. What records do I need to keep?
You should retain sales records and other documentation that will adequately support all sales subject to Hospitality Taxes and reported to the County on the Hospitality Tax returns. Such records are subject to audit by the County and should be retained for a minimum of three years.
PREPARED FOODS
7. What is "prepared meals and beverages"?
Prepared meals and beverages are products sold ready for consumption either on or off premises in businesses classified as eating and drinking places under the Standard Industrial Code Classification Manual and including lunch counters; drinking places operated as a subordinate service facility by other establishments; bars and restaurants owned by and operated for members of civic, social and fraternal associations.
RESTAURANTS, BARS AND OTHER FOOD SERVICE FACILITIES
8. What sales by restaurants, bars and other food service establishments are subject to the Hospitality Tax?
All sales of food and beverages, served by a restaurant, hotel, motel, club, lounge, bar or other ABC licensed establishment, or other food service facilities are subject to a two percent (2%) Hospitality Tax.
CONVENIENCE STORES AND GROCERY STORES
9. What sales by convenient stores are subject to the Hospitality Tax?
All sales of food and beverage items that are prepared or modified by the establishment for immediate consumption are subject to a two percent (2%) Hospitality Tax. Generally, sales of all deli and bakery department items by a grocery store would be subject to the tax.
ACCOMMODATIONS
10. What proceeds is subject to the Hospitality Tax for accommodations?
Rental or charges for rooms, campground spaces, recreational vehicle spaces, lodgings or sleeping accommodations furnished to transients by any hotels, motels, inns, condominium, bed & breakfast, residence, or other place in which rooms, lodgings, or sleeping accommodations are furnished for consideration within Georgetown County are subject to a three percent (3%) Hospitality Tax. The gross proceeds received from the lease or rental of sleeping accommodations supplied to the same person for a period of thirty (30) or more continuous days are not considered proceeds from transients. |
