South Carolina Hospitality Tax Overview
The hospitality tax is a uniform tax of 2% on the gross proceeds derived from the sales of prepared meals, food, and beverages sold in or by establishments, or those licensed for on-premises consumption of alcoholic beverages, beer, or wine.
City-Specific Hospitality Taxes in South Carolina
The City of Liberty imposes a 2% hospitality tax on establishments selling prepared meals and beverages within the city limits.
Allocation of City Hospitality Tax Funds
City Council makes the final decision on the allocation of city hospitality tax funds, including grants for various projects and improvements.
Usage of SC Hospitality Tax Funds
The revenue generated by the hospitality tax must be used exclusively for tourism-related activities and facilities in the community, as outlined by South Carolina’s regulations.
Accommodation Tax and Beach Preservation Fee
A tax on accommodations within the Town of Hilton Head Island allocates three percent of gross sales to tourism-related expenditures.
Local Hospitality Tax
A local hospitality tax is a tax on prepared meals and beverages sold in establishments, not exceeding 2%, used for local tourism promotion and infrastructure projects.