SALT Report 3095 – The South Carolina Department of Revenue issued a fact sheet that discusses the sales tax imposed on room accommodations. The fact sheet was written to ensure that revenue collected as a result of the 2% accommodations tax are reported and remitted to the Department correctly.
Generally, accommodation charges are subject to the state sales tax rate of 5%, the 2% accommodations tax, and any local sales and use taxes administered and collected by the Department. The person that provides the accommodations, whether it is the property owner, an online travel company, a listing service, or a real estate agent, must hold a retail license and is responsible for reporting and remitting the tax. However, the licensing requirement does not apply to persons who provide accommodations for one week or less in a calendar quarter, instead the person will be required to remit the sales tax to the Department on an annual basis.
The following forms are required to report and remit the accommodations tax:
Form ST-388 State Sales, Use, and Accommodations Tax Return – This form is used to report the state sales tax on accommodations, sales of tangible personal property, and any use tax. The form must be submitted along with Forms ST-3T, State Accommodations Report by County or Municipality and ST-389 – Schedule of Local Sales and Use Taxes Administered by DOR.
ST-3T State Accommodations Report by County or Municipality – This form must be filed along with Form ST-388 even if the person has only one rental unit located in a county or municipality. The person must use this form to separately report the 2% portion of the total gross proceeds from business done in each county or municipality.
ST-389 Schedule of Local Sales and Use Taxes Administered by DOR – This form is used to report the local sales and use taxes applicable to taxable sales and services. This form is not required to be filed with form ST-388 if the retailer is located in a county that does not impose local sales and use taxes and does not make deliveries into other counties that do impose local sales and use taxes.
All of the accommodations tax returns mentioned above are due by the 20th day of the month following the close of the reporting period.
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