HOSPITALITY TAX INFORMATION

Hospitality Tax

A Hospitality Tax is a 2% tax imposed on the purchase of prepared or modified food and/or beverages intended for consumption from a restaurant, hotel, motel, caterer, or other food service facility located within the Town.

In addition, the tax applies to food and beverages prepared or modified by convenience stores or grocery stores that have designated areas where items are prepared for immediate consumption or carryout.

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Who Is Responsible for Collecting and Remitting the Hospitality Tax?

Any business that prepares food and/or beverages within the Town is responsible for collecting and remitting the Hospitality Tax.

Similar to the State Sales Tax, the Hospitality Tax is assessed at the point of sale, collected by the business from the customer, and then remitted directly to the Town.

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Remittance Schedule

Hospitality Tax payments must be submitted according to the following schedule:

• Monthly – when average tax collections exceed $50 per month

• Quarterly – when average tax collections are between $25 and $50 per month

• Annually – when average tax collections are less than $25 per month

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Catering Orders and Sales Delivered Outside the Town

Yes, the Hospitality Tax applies to all orders and sales, whether generated inside or outside the Town, when the food is prepared within the Town.

If a business is required to remit Hospitality Tax to another jurisdiction, the amount remitted must be disclosed to the Town on the monthly reporting form.

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How Is the Hospitality Tax Remitted?

Taxes must be submitted to the Hospitality Tax Clerk by the 20th of each month for the prior month’s collections.

Each remittance must include:

• A completed Local Hospitality Tax Reporting Form

• A copy of the State Sales Tax Return (ST-3)

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What If My Payment Is Delinquent?

A penalty of 5% per month must be added to all delinquent remittances.

Failure to remit taxes and/or penalties may result in fines, as provided under the Town of South Congaree Ordinances.

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Why Was the Hospitality Tax Implemented?

The Hospitality Tax was implemented to support:

• The operation and maintenance of current and future tourism-related facilities

• Capital improvements that enhance quality of life, tourism, and recreation

• Infrastructure and promotional efforts without relying solely on property taxes or business license taxes

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Funds May Be Used For:

• Revitalization and beautification of the Town of South Congaree

• Improvements to Town-owned parks

• Marketing and promotion of Town-sponsored events

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General Questions: 2% Local Hospitality Fee

Restaurants and Bars

What sales are affected?

• All food, beverage, and alcohol sales

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Convenience Stores, Grocery Stores, and Similar Retailers - What Sales Are Affected?

• All prepared or modified food and/or beverage items intended for immediate consumption

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Examples of Taxable Prepared or Modified Items:

• Heated foods (pizza, nachos, hot dogs, sandwiches, chicken, vegetables, etc.)

• Prepared sandwiches, salads, doughnuts, and cakes

• Fountain drinks, frozen drinks, coffee, and cappuccino

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Examples of Non-Taxable Items:

• Packaged foods

• Bulk or packaged cold deli items

• Canned or bottled beverages

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Accessory Use Food Service Facilities

(Arcades, theaters, amusements, and similar businesses)

Taxable Sales Include:

• Prepared or modified food and beverage items such as fountain drinks, popcorn, nachos, and similar items

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Why Was the Hospitality Fee Implemented?

To fund necessary tourism-related buildings and improvements, including:

• Beautification projects

• Advertising and promotional efforts

• Tourism-related facilities

• Tourism-related water and sewer infrastructure