The South Carolina Department of Revenue (DOR) has announced that beginning October 1, 2022, those who provide rooms to rent will be required to electronically file and pay the accommodations tax returns.  A notice of the electronic mandate was sent in July to accommodations tax account holders.

To file and pay applicable accommodations taxes, landlords are required to hold a valid Retail License in the state of South Carolina.  A Retail License is not required ​if you only rent a room or living space for one week or less during each calendar quarter —​ but you are still required to file and pay the accommodations tax annually. ​​

Of course, there are several exceptions to the new legislation.  Accommodations tax does not apply to those who rent a space out of a facility with 6 rooms or less, given that the owner or operator is also living there at the time of tenancy and does not use a rental agency or online travel company to rent rooms.

The accommodations tax also does not apply to living spaces rented out to foreign diplomats, or to any accommodations that are billed directly to federal government agencies, 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 taxpayer’s filing period, and can be made electronically. The South Carolina Department of Revenue recommends that accommodations tax account holders file and make their payments using MyDORWAY, the DOR’s online tax payment and management portal.

While this is an overview of the legislation, it is not a substitute for speaking with a tax professional to ensure that you are fully compliant.  WebsterRogers is South Carolina accounting firm with a team of associates who are dedicated solely to tax consulting and compliance.  To learn more about the services we offer or contact a tax professional, visit our Tax Consulting & Compliance page.  For information on Sales Tax exemptions and exclusions, refer to Chapter 11 of the SCDOR’s Sales and Use Tax Manual.