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Businesses, here's a reminder about Hospitality Tax, Local Accommodations Tax and Hospitality Fee changes

“What do I collect, effective July 1, 2021?”  You will collect and pay to the City of Myrtle Beach the following fees and taxes, just as you did prior to July 1, 2019.  Updated reporting forms have been provided.  

• Accommodations and Short-Term Rental Providers collect .05 percent Local Accommodations Tax and 1 percent Hospitality Fee.  
• Prepared Food and Beverage Providers collect 1 percent Hospitality Fee
• Paid Places of Admissions Collect 1 percent Hospitality Fee.  See the attached chart that provides a summary of the information for City businesses.

“What about Hospitality Fee payments to Horry County?” You should receive a separate communication from the County regarding the resumed collection of the County’s 1.5% Hospitality Fee from businesses located inside the City once again as of 12:01 a.m. on July 1, 2021.

The backstory…  In March 2019, the City of Myrtle Beach approved an increase in its Local Accommodations Tax from 0.5% to 3% and implemented its 2% Hospitality Tax. In July 2019, the City began to collect these taxes and Horry County ceased collection of its 1.5% Hospitality Fee inside the City’s corporate limits. Recently, the City and the County reached a settlement of the lawsuit contesting the County’s collection of the 1.5% Hospitality Fee from City businesses.

The settlement agreement provides, among other things, that the County will resume collections of its 1.5% Hospitality Fee inside the City of Myrtle Beach, but will pay to the City all amounts collected from City businesses, less a 1% administrative fee. The City, in turn, will “reset” the rates of its Hospitality Fee and Tax and Local Accommodations Tax to the rates it charged prior to July 2019.