Accommodations Tax does not apply to:

• The lease or rental of accommodations supplied to the same person for a period of 90 continuous days​
• A facility with six or fewer bedrooms, provided that:
  • ​​the facility is on the same premises where the owner or operator lives at the time the other rooms are rented, 
    and
  • the owner or operator does not use a rental agency or online travel company to rent rooms.
• Accommodations provided to foreign diplomats
• Accommodations billed directly to federal government agencies, the American Red Cross, federal credit unions, or charitable children's hospitals.

For more information on Sales Tax exemptions and exclusions, refer to Chapter 11 of the SCDOR's Sales and Use Tax Manual.

The 2% portion of the Accommodations Tax is distributed back to cities and counties using a formula based on point of sale.

• A municipality receiving more than $50,000 in Accommodations Tax revenue must appoint an advisory committee to recommend to the municipality’s Council how the money is spent. The Council can then accept, reject, or modify the recommendations.
• The first $25,000 of the Accommodations Tax distribution is deposited into the local governments’ general funds. Of the balance, 30% must be allocated to a special fund for the exclusive use of tourism advertising and promotion, and the remaining balance must be used for tourism-related expenditures.
• Local governments can charge up to an additional 3% in Accommodations Tax. The proceeds must be used for tourism-related projects and programs as defined in SC Code Section 6-1-530.

Many counties and municipalities in South Carolina also impose local accommodations taxes that are not administered by the ​SCDOR. Please contact the county or municipal office where your rental property is located to determine what additional local taxes you are required to rep​ort to that jurisdiction.

If you are a property owner with more than one location that provides short term accommodations, you must have a Retail License​ for each location. ​As the property owner you are responsible for collecting and paying Accommodations Tax for the rentals that you booked without the service of the property management or online travel company.

No, if you rent your property exclusively through a property management or online travel company that is reserving rooms and accepting payment for booking, they are responsible for remitting the tax for the full amount of the booking. Therefore, you are not required to have a Retail License with South Carolina.

You have two options for closing your account:

• Log in to MyDORWAY, then select the More tab, and click Close a Tax Account to get started.
  or
• Close your account on your final tax return by checking “Has the business been permanently closed?” and typing in the closed date.

Do I need to file a return if I don’t have any rentals for a particular filing period?

Yes, if you have a registered license with the state of South Carolina, you are required to file a return even if you had no rentals. You would report zeros on the return.

Who is responsible for collecting and paying Accommodations Tax if I use a Property Management or Online Travel Company to rent my property?

The person or business who books the accommodations is responsible for collecting and paying Accommodations Tax. That may be the property owner or a real estate agent, listing service, broker, Online Travel Company (VRBO, Expedia, etc.), or similar entity.

If you use an online travel company for reserving rooms and accepting payment for the booking, they are responsible for the tax for the full amount of the booking.

If you don’t use property management or an online travel company to book all of your rentals, you are responsible for collecting and paying Accommodations Tax for the rentals that you booked without the service of the property management or online travel company.

I rent my property through a property management or online travel company, who says they are reporting the taxes for me. Why do I keep getting Non-Filer notices?

If you are receiving non-filer notices, you likely still have an active Retail License for the rental accommodations. Property management and online travel companies report Sales and Accommodations Taxes to the SCDOR using their own Retail License. They will not file using the Retail License of the property owner whose accommodations they are renting.

​I have a Retail License. Do I still need to file a return each period even if I rented my property through a property management or an online travel company?

Yes. If you have an active Retail License with South Carolina, you are required to file Sales and Accommodations Tax returns for each period. However, you are only responsible for reporting the rentals that you booked on your own, outside the services of the property management or online travel company.

If you have a period where all of your rentals were through a property management or online travel company, report zeros on the return for that period.

Are service fees charged by a property management or online travel company taxable?

Yes, any service fees charged by a property management or online travel company are considered part of the cost of the rental and are subject to the tax.

Are Cleaning fees taxable? What rate do I charge?

It depends if the cleaning fee is required for guests to pay or is optional.

• ​If the cleaning fee is required for each rental of the property, it is subject to the 7% Accommodations Tax plus any applicable local tax.
• If the cleaning fee is optional, then it is not taxed. A service that is optional is still a non-taxable service. It only becomes taxable when it is a mandatory charge.

I have sold my property or will no longer be making sales of accommodations. What should I do?

To close an Accommodations Tax account, log in to your MyDORWAY account​, select the More tab, and click ​Close a Tax Account to get started. ​Please ensure that all periods prior to the close date have been filed.​​​​

How do I file for a refund of Accommodations Tax?

We recommend filing ​your refund claim using MyDORWAY, along with uploading any required documentation. You can also complete and submit the ​Claim for Refund (ST-14)​ paper form if you are unable to file on MyDORWAY​.

You must request a refund within three years from the time your return was filed or within two years from the date you paid the tax, whichever was later.

For more information, see SC Code Section 12-54-85(F)(1)​​.

I have been incorrectly paying Sales and Accommodations Taxes on rentals that were being booked through my property management or online travel company. Can I request a refund?

Yes. You must amend all returns for the periods in question on MyDORWAY​. Be sure to upload all necessary documentation, including (but not limited to) proof of payment by the property management or online travel company.

You must request a refund within three years from the time your return was filed or within two years from the date you paid the tax, whichever was later.

For more information, see SC Code Section 12-54-85(F)(1)​.

Who is responsible for requesting a refund of Accommodations Tax?

​Any taxpayer who is legally responsible for a tax can file a refund claim with the SCDOR.