Important Hospitality Tax Information

Effective date:
A Hospitality Tax on prepared meals and beverages was approved by the Richland County Council on May 6, 2003. It was effective on and after July 1, 2003.

Basis:
The Hospitality Tax applies to all gross receipts collected on sales of prepared or modified food and beverages, whether dine-in or take-out.

Application:
The Hospitality Tax applies to all restaurants, bars, convenience stores, fast food outlets, grocery stores, and any other business preparing and/or serving food and/or beverages.

Unincorporated Tax Rate:
Businesses within areas not within a city limits selling prepared or modified foods or beverages normally have a 2% Hospitality Tax rate. However, for the two years between July 1, 2009 and June 30, 2011, the Hospitality Tax rate in these areas will be 1%.

Municipal Tax Rate:
Businesses within the city limits of Irmo (in Richland County) and Eastover selling prepared or modified foods or beverages have a 1% Hospitality Tax rate.

Total Tax Rate:
Taxes on prepared foods and beverages in Eastover, and in the Richland County portion of Irmo will total 8%: 6% State of South Carolina Sales Tax, 1% Local Option Sales Tax, and 1% Richland County Hospitality Tax. The taxes on prepared foods and beverages in the unincorporated areas of Richland County will also be 8% from July 1, 2009 – June 30, 2011.

Due Date:
All Hospitality Tax payments are due on the 20th of every month, or the next business day. Payments received after this time will incur a 5% per month late fee.

Voucher Forms:
If you do not wish to obtain personalized voucher forms online from this web site and prefer to obtain paper voucher forms, please contact the Business Service Center at bsc@rcgov.us or (803) 576-2287 to request these voucher forms be sent to you.

More Hospitality Tax Information

1. Business Service Center inspectors and auditors are now visiting and auditing businesses to ensure compliance by businesses with the Hospitality Tax.
2. If your business does not have a Richland County business license but does business in the unincorporated areas of the County, a business license is needed for each year beginning from when the business opened or 2006, whichever is later, with penalties at 5% per month. Please contact the Business Service Center to request the appropriate business license application forms. The deadline to renew a current year business license without penalty is March 15.
   (NOTE: If your business is exempt from having a business license, please contact the Business Service Center so this can be noted in the system.)
3. All Hospitality Tax payments must be accompanied by the business’ payment voucher form for that reporting period. Only one reporting period’s revenues may be reported per payment voucher form.
4. Payment vouchers are available online and are strongly recommended to be used, as it ensures that all information and calculations are accurate. Click “Print Personalized Payment Voucher” at the top of the column at the right.
5. Businesses wishing to receive paper voucher forms for Hospitality Tax payments need to request them. Please contact the Business Service Center to request paper payment vouchers.
6. Hospitality taxes must be collected and remitted to the County for any food or beverages prepared and/or modified on site. If your business does not sell food or beverages (or if the food or beverages are not prepared or modified on site) please contact the Business Service Center to request the Hospitality Tax Certification Form so your business can be removed from the system.
7. For audit purposes, a copy of the State Sales Tax return shall be submitted with each Hospitality Tax payment for the time period the Hospitality Tax payment covers. If the Sales Tax Return is not received with the payment, the 5% penalty outlined in Section 23-73(b) will be applied for failure to timely provide audit records as requested. If not all sales reported on the State Sales Tax Return are from the sale of prepared or modified foods or beverages, the business will also need to identify the amount of the sales from prepared or modified foods or beverages.
8. Businesses with any past Hospitality Tax balances will have current payments applied first to previous balances. This means that current payments will be applied to any prior balances before being applied to the current month, and penalties will accrue to any shortage associated with the payment for the current month. Any month with no payment applied will accrue penalties until revenue is documented and reported and taxes paid.
9. Businesses with Hospitality Tax balances due or payments missing altogether must pay the balances or payments in full before a business license will be issued. Penalties will accrue on the Hospitality Tax payments and the business license payment until the Hospitality Tax payments are paid in full.
10. If a business has moved to a new location and owes Hospitality Taxes from the previous location, the business will not be able to obtain a current business license until the balance is paid in full. Business license penalties begin accruing on March 16.
11. If the business has changed ownership and the previous owner was delinquent in paying Hospitality Taxes, the new owner is responsible for paying the unpaid balance. The business will not be able to obtain a current business license until the unpaid balance is paid in full. Business license penalties begin accruing on March 16.
12. If a business’ total annual reported Hospitality Tax revenues do not coincide with the reported business license revenues for the same year, the business is subject to be audited, with all applicable penalties applied.
13. Businesses unable to pay their balances in full may pay two or more months at a time, to ensure that the business will become current. All balances, including any applicable late fees, must be paid in full in order to obtain a current business license. Any businesses with unpaid balances will continue to accrue penalties until the balances are paid.
14. Businesses with bounced Hospitality Tax checks must pay these amounts, with penalties, with certified funds, and will not be able to obtain a current business license until the balance is paid in full. Business license penalties begin accruing on March 16.
15. Businesses with zero revenue in a month must still return that payment period's voucher form to avoid the appearance of delinquency.
16. Schools, daycares, and community care facilities owe Hospitality Taxes only on revenues generated by the sale of food/beverages to employees or are sold separately to clients.
17. Independent contractors are required to obtain their own business license. These are people who are paid on the IRS Form 1099 Form rather than the W2 Form. Please verify that any independent contractors have their business license.