South Carolina taxes - all covered, or just state?

[David259]

On May 18, I received an email saying that Airbnb will begin collecting and remitting taxes in South Carolina starting June 1, 2016. I was very excited! I currently pay a fee to MyLodgeTax (Avalara) to handle tax reporting/payment to all the various state and local entities, and would love for Airbnb to handle that (for free). HOWEVER, when I emailed MyLodgeTax to cancel their service, they told me that "Airbnb is actually only paying the taxes collected by the state of South Carolina, but there's a separate accommodations tax collected by/paid to Charleston County."

Is it true that Airbnb isn't handling ALL taxes? That would be really, really frustrating!!

As part of my contract with MyLodgeTax, they handle the following taxes, which add up to 13.5% total:

South Carolina Sales Tax  5.0%

South Carolina Accommodations Tax  2.0%

Charleston County Accommodations Tax  2.0%

Charleston County Local Option Tax  1.0%

Charleston County Education Tax  1.0%

Charleston County Transportation Tax  0.5%

North Charleston Accommodations Tax 2.0%

I would STRONGLY prefer for Airbnb to handle all these taxes; a "halfway" approach (only doing state-level taxes but not local) will just complicate things, and force me to keep using MyLodgeTax, or else do a lot more manual tax paperwork. Ugh. It would also mean that realistically, a lot of folks simply won't pay the local taxes that they owe. Double ugh. Please help out us SC hosts who want to do the right thing, Airbnb!

[Cathy522]

i agree they arent and I'm trying to get a answer and they say contact your accounting person

[Brian318]

Are the taxes paid on cleaning fees as well?  All of my calculation show a 12% collection.  Not sure what is being collected when they should only be collecting 9.5%

[Sidney15]

all mandatory fees are taxable so if you charge cleaning fee as required, then it is taxable.

Airbnb only pays SC state tax.  Local tax such as Horry County or City of Myrtle Beach etc. are not collected by Airbnb so you have to pay that seperately.

[Cathy522]

how do you get this tax from rentals when airbnb only collecting for the state?

[Pat137]

My vacation rental is located in the City of Myrtle Beach. The following is a breakdown of applicable taxes/fees due, and the respective government entities to which they are paid:

   5% Sales and Use Tax: SC Dept. of Revenue  

   2% Accommodatons Tax: SC Dept. of Revenue

   1% Tourism Development Tax (Myrtle Beach): SC Dept. of Revenue  

   1% Capital Projects Tax (Horry County): SC Dept. of Revenue

   1 % School District/...Tax (Horry County): SC Dept. of Revenue  

    = 10% Sub-Total: SC Department of Revenue

   1% Hospitality Fee Transient Accommodations: City of Myrtle Beach

   0.5% Local Accommodations Tax: City of Myrtle Beach             

   = 1.5% Sub-Total: City of Myrtle Beach

   1.5% Hospitality Fee/Local Transient Accommodations

            Tax: Horry County                                                                       

   = 1.5% Sub-Total: Horry County

   ____________________________________________________    

   = 13% Total Fees/Tax Due 

Special additional notes:

Per email from Airbnb customer support and a review of my account, Airbnb collects and remits on my behalf [only] the 10% due to the SC Dept. of Revenue; the remaining 3% balance is my responsibility.

Airbnb assumes no responsibility for taxes and fees due on rental income/gross proceeds collected via other payment platforms (VRBO/Flipkey/owner direct/HomeEscape, etc). 

A business license is required for anyone who owns/rents transient (short term) accommodations. It is issued by the county or municipality in which the property is located, paid annually, and based on reported gross proceeds from previous year.

Tax reports may be filed either monthly or quarterly (I file hard copy reports quarterly).

FYI: If you call the SC Dept. of Revenue for assistance and ask the same question on differing occasions seeking clarification, in all likelihood you will receive different often conflicting answers (trust me I know) so be careful what advice you follow. Ultimately you will be the one paying the [hefty] penalty for non-payment of taxes due, mis-information notwithstanding. 

Hope this helps.   

[Lucia594]

I filed with the County and the Municipality am I suppoae to file for State Taxes too althoiugh Airb&b collects them?

[Cathy522]

how are you collecting taxes from the guess to file to the county? 

[Sheila319]

yes, you do file, but state on the forms that Airbnb has collected and remitted the state tax.

[Lillie13]

@Pat271 How are you figuring out what to pay?  Did you just raise your nightly fee?

[Pat271]

@lillie13 I think you meant this for @Pat137 .

[Sherry67]

I have read the threads and want to start correctly. Hoping the experienced hosts will help??

I am beginning my 2019 Air Bnb Extra Room Rental in Charleston County (SC).Can someone guide me in operating licenses needed and what extra taxes should I add on for collection from Guests?

[Maria3268]

I'm new to hosting and learning. Have been Realtor for 29 years and very familiar with the Landlord /Tenant Act, now trying to find information on SC Short term rentals. My property is in Orangeburg County do any of you know how to get information on taxes in that country?

.

[Sheila319]

Beyond the 7% tax collected and remitted by Airbnb to the State of South Carolina, I have a seperate 4% tax to the County of Beaufort.  I cannot find a way to add that 4% onto tax charged to guests for a total of 11%.  My guests are only paying 7%.  I am absorbing the other 4%.  Does anyone know how I can post and charge the full 11% tax?  It appears that once Airbnb automatically sets up a collect and remit, we can't go in and edit it.

Sheila

[Debora141]

Hi Sheila,

I'm in Beaufort, too. I contacted support and here is the link to working around the 4% local tax they do not handle. Very inconvenient and will probably upset some travelers when they are hit with a fee upon check-in.

https://www.airbnb.com/help/article/2496/how-does-manual-occupancy-tax-collection-and-payment-work?t...

Hope this helps.

[T60]

How are you only collecting 7% for SC?  Based on what I remit, it's 10%.