Local Hospitality/Local Accommodations Tax
GENERAL INFORMATION AND INSTRUCTIONS
RESTAURANTS, BARS AND OTHER FOOD SERVICE FACILITIES
CONVENIENCE STORES AND GROCERY STORES
ACCOMMODATIONS
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GENERAL INFORMATION AND INSTRUCTIONS
What are Local Hospitality and Local Accommodations Taxes and why are they necessary?
The Local Hospitality Tax is a tax imposed on the sale of prepared food and beverage items within the City of Georgetown. The Local Accommodations Tax is a similar tax imposed on rentals of rooms or other sleeping accommodations furnished to transients. These taxes, enacted by ordinance of City Council of the City of Georgetown, are paid by consumers of the applicable products and services. The taxes were created to help fund the current and future preservation, maintenance and improvement of unique historical, environmental and cultural assets of Georgetown, and those public facilities related to their use.
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Who is responsible for collecting and remitting these taxes?
The business establishment is responsible for collecting these taxes from patrons and is required to timely remit such collections to the City of Georgetown. The failure to collect these taxes does not relieve any business from making the required remittances to the City of Georgetown.
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How should taxes be remitted?
Taxes must be remitted to the City of Georgetown on the following basis: If the total tax averages more than $50 a month, remittances are due monthly; if the total tax averages between $25 and $50 a month, remittances are due quarterly; and if the total tax averages less than $25 a month, remittances are due annually. All remittances are due no later than the 20th day of the month following the end of the reporting period. The reporting period is defined as the prior month, quarter or year, whichever is applicable in your circumstances. Each remittance must be accompanied by a completed Local Hospitality / Local Accommodations Tax Return form. These taxes are not local option sales taxes. Do not remit these taxes to the South Carolina Department of Revenue.
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What if I am late remitting my taxes?
Taxes are due to the City no later than the twentieth (20th) day of the month following the end of each reporting period. A penalty 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 twenty-five percent (25%) of the taxes due.
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What records do I need to keep?
You should retain sales records and other documentation that will adequately support all amounts reported on Local Hospitality and/or Local Accommodations Tax Returns. Such records are subject to audit by the City and should be retained a minimum of three years.
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RESTAURANTS, BARS AND OTHER FOOD SERVICE FACILITIES
What sales by restaurants, bars and other food service establishments are subject to the Local 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%) Local Hospitality Tax.
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CONVENIENCE STORES AND GROCERY STORES
What sales by convenience stores and grocery stores are subject to the Local 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. Prepackaged items that a customer heats at his option would be excluded from the tax. Generally, sales of all deli and bakery department items by a grocery store would be subject to the tax.
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ACCOMMODATIONS
What proceeds are subject to the Local Accommodations Tax?
Rental or charges for rooms, campground spaces, lodgings, bed and breakfast rooms, or other sleeping accommodations furnished to transients for less than ninety (90) consecutive days by hotels, motels, inns, tourist courts, tourist camps, campgrounds or residences are subject to a three percent (3%) Local Accommodations Tax. Additional guest charges would not be subject to the tax.
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