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