What is the Myrtle Beach Tourism Tax and How Does it Affect You?

28 April, 2025 • 0 Comment
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Are you planning a vacation to Myrtle Beach and wondering about the “Myrtle Beach Tourism Tax”? At SIXT.VN, we understand that navigating travel costs can be tricky. Let’s break down the Myrtle Beach tourism tax, explaining what it is, how it works, and how it impacts your trip. We aim to provide you with the best information, so you can enjoy your vacation without any surprises. SIXT.VN offers seamless travel solutions, from airport transfers to hotel bookings, ensuring a stress-free experience in Vietnam and beyond.

Contents

1. What Exactly is the Myrtle Beach Tourism Tax?

The Myrtle Beach tourism tax, officially known as the “Hospitality Fee,” is a local tax applied to various hospitality-related services within Horry County, South Carolina, where Myrtle Beach is located. This fee helps fund public safety, infrastructure improvements, and tourism-related projects in the area.

1.1. Who Pays the Tourism Tax in Myrtle Beach?

The tourism tax is paid by consumers of specific services within the hospitality industry. These services include:

  • Transient Accommodations: Anyone renting a hotel room, condo, vacation rental, or other lodging for less than 90 consecutive days.
  • Admissions to Amusement Places: Visitors paying for admission to attractions, amusement parks, and entertainment venues.
  • Prepared Food and Beverages: Customers purchasing meals, snacks, and drinks at restaurants, bars, and other food service establishments.
  • Short-Term Rental of Private Passenger Motor Vehicles: Individuals renting cars for less than 90 consecutive days.

1.2. What is the Purpose of the Myrtle Beach Hospitality Fee?

The revenue generated from the Myrtle Beach hospitality fee is earmarked for several critical areas, ensuring the upkeep and enhancement of the region’s appeal to tourists and residents alike.

  • Funding for Public Safety: A significant portion of the revenue is directed towards bolstering public safety initiatives.
  • Local Infrastructure Needs: The revenue also supports the Horry County Public Works Department in addressing local infrastructure needs.
  • Tourism-Related Projects: The hospitality fee helps fund projects that enhance the overall tourism experience.

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Image: Night view of Myrtle Beach Boardwalk illustrating attractions funded by tourism taxes.

2. How is the Myrtle Beach Tourism Tax Calculated?

The calculation of the tourism tax depends on the location of the business (inside or outside city limits) and the type of service provided. Here’s a breakdown:

2.1. Tax Rates Based on Location

  • Businesses Outside City Limits:

    • 2.5% on gross proceeds from the Sale of Food/Beverages.
    • 3% on gross proceeds from Rental of Transient Accommodations.
    • 2.5% on gross proceeds from Paid Admissions and/or Amusements.
    • 2.5% on short-term rental of private passenger motor vehicles.

  • Businesses Inside City Limits:

    • 1.5% on gross proceeds from the Sale of Food/Beverages.
    • 1.5% on gross proceeds from Rental of Transient Accommodation.
    • 1.5% on gross proceeds from paid Admissions.
    • 2.5% from short-term rental of private passenger motor vehicles.

2.2. Example Calculations

Let’s illustrate with a few examples:

  • Example 1: Restaurant Outside City Limits
    • A restaurant outside the city limits has gross food and beverage sales of 10,000$.
    • Tourism tax: 10,000$ * 2.5% = 250$.
  • Example 2: Hotel Inside City Limits
    • A hotel inside the city limits has gross room rental revenue of 50,000$.
    • Tourism tax: 50,000$ * 1.5% = 750$.
  • Example 3: Amusement Park Outside City Limits
    • An amusement park outside the city limits collects 20,000$ in admission fees.
    • Tourism tax: 20,000$ * 2.5% = 500$.

2.3. Tax Calculation for Different Hospitality Services

Service Location Tax Rate Calculation
Restaurant Sales Outside City Limits 2.5% Gross Sales * 2.5%
Hotel Room Rentals Inside City Limits 1.5% Gross Rental Revenue * 1.5%
Amusement Park Admissions Outside City Limits 2.5% Gross Admissions Revenue * 2.5%
Car Rentals (Short-Term) Any Location 2.5% Gross Rental Revenue * 2.5%
Restaurant Sales Inside City Limits 1.5% Gross Sales * 1.5%
Hotel Room Rentals Outside City Limits 3% Gross Rental Revenue * 3%
Concert or Event Admission Tickets Any Location 2.5% Gross Ticket Sales * 2.5%

3. How Does the Myrtle Beach Tourism Tax Affect Visitors?

Understanding how the tourism tax impacts your vacation budget is essential for planning.

3.1. Increased Costs for Services

The most direct impact is an increase in the cost of services subject to the tax. While the percentages might seem small, they can add up, especially during a longer vacation.

3.2. Budgeting Considerations

When planning your trip to Myrtle Beach, remember to factor in the tourism tax. Add the relevant percentages to your estimated costs for accommodations, dining, entertainment, and car rentals to get a more accurate budget.

3.3. Transparency and Awareness

Businesses are required to clearly display the tourism tax on your bill. Ensure you review your receipts to understand the charges and confirm they align with the correct tax rates.

3.4. Supporting Local Improvements

While it adds to your costs, remember that the tourism tax contributes to improving the overall experience in Myrtle Beach. This includes better public safety, infrastructure, and attractions, making it a more enjoyable destination for everyone.

Image: Beachgoers enjoying the beach at Myrtle Beach, highlighting the amenities supported by tourism taxes.

4. How Do Businesses Handle the Myrtle Beach Hospitality Fee?

For businesses in Myrtle Beach, managing the hospitality fee involves several crucial steps.

4.1. Registration Requirements

All businesses subject to the hospitality fee must register with the Horry County Hospitality Fee Department. Additionally, businesses located inside city limits must also register with their local municipality.

4.2. Collection from Customers

Businesses are responsible for collecting the appropriate fees from customers at the point of sale. This means adding the tax amount to the customer’s bill for taxable services.

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4.3. Reporting and Remittance

Businesses must report and remit the collected fees to the Horry County Hospitality Fee Department on a monthly basis. This involves completing a reporting form and submitting it along with the payment.

4.4. Due Dates and Penalties

The due date for reporting and remitting the hospitality fee is the 20th of the month following the reporting period. Failure to file or pay on time can result in penalties, including:

  • Failure to File Penalty: Calculated daily based on 10% per month, up to 20% of the fee due.
  • Late Filing Penalty: Calculated daily based on 10% per month, up to 20% of the fee due.
  • Late Payment Penalty: Calculated daily based on 10% per month, with no limit unless found due under an audit (then capped at 25% if paid within 10 days of assessment).

4.5. Audits and Compliance

To ensure compliance, businesses are subject to periodic on-site inspections and financial audits. Violations can result in fines and potential imprisonment.

4.6. Example of Hospitality Fee Calculation for Businesses

Consider a restaurant located outside Myrtle Beach city limits. In January, the restaurant’s gross proceeds from food and beverage sales totaled $50,000. The hospitality fee calculation would be:

  • Hospitality Fee Rate: 2.5%
  • Gross Proceeds: $50,000
  • Hospitality Fee Due: $50,000 * 0.025 = $1,250

The restaurant must collect $1,250 from its customers as hospitality fees for January and remit this amount to the Horry County Hospitality Fee Department by February 20.

5. What are the Specific Services Covered by the Tourism Tax?

Knowing the specific services that attract the Myrtle Beach tourism tax can help you budget your trip effectively.

5.1. Transient Accommodations

Any lodging rented for less than 90 consecutive days is subject to the tax. This includes hotels, motels, vacation rentals, condos, and campgrounds.

  • Hotels and Motels: Rooms rented on a nightly basis.
  • Vacation Rentals: Houses, apartments, or condos rented for short periods.
  • Campgrounds: Spaces rented for camping.

5.2. Admissions to Places of Amusement

Fees collected for entry to various attractions and entertainment venues are taxable.

  • Amusement Parks: Tickets to theme parks and water parks.
  • Theaters and Concerts: Admission to live performances.
  • Museums and Attractions: Entry fees to museums, zoos, and other attractions.

5.3. Prepared or Modified Food and Beverages

Sales of food and beverages prepared for immediate consumption are subject to the tax.

  • Restaurants: Meals, snacks, and drinks served in restaurants.
  • Bars and Clubs: Alcoholic beverages and other drinks sold in bars.
  • Takeout and Delivery: Food and beverages purchased for consumption off-premises.

5.4. Short-Term Rental of Private Passenger Motor Vehicles

Rental of cars for less than 90 days is subject to the tax.

  • Car Rentals: Vehicles rented from rental agencies.
  • Truck Rentals: Short-term rental of trucks for personal use.
  • Van Rentals: Rental of passenger vans.

5.5. Activities Exempt from Tourism Tax

Some services and activities are exempt from the Myrtle Beach tourism tax, helping visitors save money in specific areas.

Exempt Activity Reason for Exemption
Long-Term Accommodation Rentals (90+ days) Considered more like a permanent residence than transient lodging.
Goods Sold at Retail Stores (Unprepared Foods) Applies to groceries and other items not prepared for immediate use.
Services Not Related to Hospitality Professional services, healthcare, and other non-tourism related services.
Educational Programs and Workshops Activities focused on learning rather than entertainment.
Charitable Events and Fundraisers Events that primarily benefit a charity or cause.

6. Understanding the Impact on Different Sectors

The tourism tax affects various sectors within Myrtle Beach, each responding differently to its implementation.

6.1. Hotels and Accommodations

Hotels must incorporate the tax into their room rates and ensure it is clearly displayed to guests. Many hotels have adjusted their pricing strategies to remain competitive while accounting for the tax.

6.2. Restaurants and Food Service

Restaurants include the tax on customers’ bills. Some restaurants have opted to absorb a portion of the tax to maintain competitive pricing, while others pass the entire cost onto the consumer.

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6.3. Amusement and Entertainment Venues

These venues collect the tax on ticket sales and admissions. The added cost can influence attendance, so venues often balance pricing with special promotions or discounts.

6.4. Car Rental Agencies

Car rental agencies add the tax to the total rental cost. To mitigate the impact on customers, some agencies offer package deals that include the tax or other incentives.

Image: Family enjoying a meal at a Myrtle Beach restaurant, showing food and beverage sales subject to tourism tax.

7. How to Establish a New Hospitality Fee Account in Myrtle Beach

For businesses looking to establish a new hospitality fee account in Myrtle Beach, here are the steps to follow:

7.1. Contact the Hospitality Fee Department

Contact the Horry County Hospitality Fee Department by phone at (843) 915-5620 or visit their office.

7.2. Provide Required Information

Be prepared to provide the following information:

  • DBA Name
  • Corporation Name
  • Start Date of Business
  • Owner’s Name
  • Retail Sales License Number
  • Federal ID Number or Social Security Number
  • Type of Business
  • Physical Location of Business (address)
  • Mailing Address of Business
  • Contact Person and Telephone Number

7.3. Registration with the S.C. Department of Revenue

Ensure your business is registered with the S.C. Department of Revenue.

7.4. Registration with Local Municipality (If Applicable)

If your business is located inside city limits, register with the appropriate municipality.

7.5. Receive Information Packet

An information packet will be mailed to the business or property owner. This packet includes a “Reporting Form” and instructions.

8. How to Report and Remit Hospitality Fees Collected

Businesses need to follow a specific process to report and remit hospitality fees correctly.

8.1. Collect Fees from Customers

Collect the appropriate fees from customers for taxable services.

8.2. Retrieve Reporting Form

Use the “Reporting Form” provided in the information packet or download one from the Horry County website.

8.3. Enter Gross Proceeds

Enter the gross proceeds for each applicable category: sale of food/beverages, rental of transient accommodations, or paid admissions.

8.4. Calculate Hospitality Fee

Calculate the hospitality fee based on the applicable tax rates.

8.5. Pay the Hospitality Fee

Pay the hospitality fee by the due date (the 20th of the month following the reporting period).

8.6. Create an Online Account

Create an online account to file and pay the hospitality fee. The information you need will be in the information packet.

8.7. Reporting and Payment Methods

Hospitality fees can be reported and paid through various methods:

  • Online Payment: Submit the report and payment electronically through the county’s online portal.
  • Mail: Mail the completed reporting form along with a check or money order to the Horry County Hospitality Fee Department.
  • In-Person: Visit the Horry County Government building to submit the report and payment in person.

9. Understanding Penalties for Non-Compliance

Businesses must adhere to the regulations surrounding the hospitality fee to avoid penalties.

9.1. Failure to File Return

If a business fails to file a return, the county will make a return based on available information, assess the fee, and impose a late filing penalty.

9.2. Late Filing Penalty

A late filing penalty is assessed on the entire fee due, calculated daily based on 10% per month, up to 20% of the fee due.

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9.3. Failure to Pay

If a business fails to pay the fee when due, a late payment penalty is added, calculated daily based on 10% per month, with no limit unless found due under an audit (then capped at 25% if paid within 10 days of assessment).

9.4. Inspections and Audits

Businesses are subject to periodic on-site inspections and financial audits to ensure compliance.

9.5. Penalties for Providing False Information

Knowingly providing false information on a hospitality fee return can result in fines and imprisonment.

9.6. Appealing Penalties and Assessments

Businesses have the right to appeal decisions or assessments made by the Horry County Hospitality Fee Department.

Penalty Type Calculation Basis Maximum Limit
Failure to File Daily penalty of 0.333% (10% per month) on the entire fee due. 20% of the fee due for that period.
Late Filing Daily penalty of 0.333% (10% per month) on the entire fee due. 20% of the fee due for that period.
Failure to Pay Daily penalty of 0.333% (10% per month) on the unpaid fee amount. No limit, unless found under audit (capped at 25% if paid within 10 days).
Providing False Info Varies based on the severity and intent; may include fines, imprisonment, and revocation of business licenses. Depends on specific circumstances and legal statutes.
Non-Compliance with Audit Additional penalties and interest on the underpaid amount; potential legal action. Varies depending on the findings and legal guidelines.

10. Changes to Account Information and Business Ownership

Keeping account information up-to-date is essential for businesses.

10.1. Reporting Changes

Any changes to account information should be reported on the Change-Notification Form within five days.

10.2. New Business Owners

New business owners must establish a new account. Do not use the previous owner’s reporting form.

10.3. Keeping Mailing Address Current

Keep the business’ mailing address current to receive correspondence from the Hospitality Fee Department.

10.4. Selling the Business

If the business is sold, complete the Change-Notification Form and submit it to the Hospitality Fee Department.

Image: Crowd enjoying an event at Myrtle Beach, illustrating how tourism taxes help fund local events and attractions.

11. Board of Fee Appeals

Any person aggrieved by a decision may appeal the decision by written request within ten days after payment of the assessment under protest or notice of denial is received.

11.1. Filing an Appeal

A written notice of appeal must be accompanied by a $25 fee.

11.2. Refund of Fee

The fee will be refunded if the final resolution of the appeal is in favor of the appellant.

11.3. Hearings

The Board of Fee Appeals hearings are held monthly.

12. Helpful Information for Visitors and Businesses

Here’s some additional information to help navigate the Myrtle Beach tourism tax.

12.1. Always Include Reporting Form with Payment

Always include the reporting form with your payment.

12.2. Write Account Number on Check

Always write the account number on the check and do not staple the check to the reporting form.

12.3. Submit “Zero” Reporting Form

If gross receipts for the reporting period are “zero”, submit a reporting form indicating “zero”.

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12.4. Establish a New Account for New Owners

New business owners must establish a new account and not use the previous owner’s reporting forms.

12.5. Business License Information

If your business is located in the unincorporated area of Horry County, you may need an Horry County Business License.

12.6. Retail Sales License Information

Retail Sales License/Accommodations/Admissions information can be obtained from the SC Department of Revenue.

13. Recent Updates and Changes to the Tourism Tax

Staying informed about any recent changes to the Myrtle Beach tourism tax is essential for both visitors and business owners.

13.1. Legislative Amendments

Keep an eye on any legislative amendments that might affect the tax rate, covered services, or reporting requirements.

13.2. Policy Updates

Stay informed about any policy updates from the Horry County Hospitality Fee Department.

13.3. Public Announcements

Monitor public announcements regarding changes to the tourism tax.

Update Type Description Effective Date
Tax Rate Adjustment Any changes to the percentage rates applied to various services. Varies
Expansion of Covered Services Inclusion of new types of services or activities subject to the tourism tax. Varies
Changes in Reporting Frequency Adjustments to how often businesses must report and remit collected taxes (e.g., from monthly to quarterly). Varies
Introduction of New Exemptions Addition of new categories of services or entities that are exempt from the tourism tax. Varies
Policy Clarifications Official interpretations or clarifications of existing rules and regulations to provide better guidance to businesses and the public. Varies
Technological Updates Implementation of new online systems or tools for reporting, payment, or account management, aimed at streamlining the process for businesses and administrators. Varies

14. How Tourism Tax Revenue is Used to Improve Myrtle Beach

Understanding how tourism tax revenue is utilized can help visitors appreciate the value it provides.

14.1. Infrastructure Improvements

A portion of the revenue is used for infrastructure improvements, such as road repairs, public transportation, and utilities.

14.2. Public Safety

Funding is allocated to public safety initiatives, including law enforcement, fire protection, and emergency services.

14.3. Tourism Development

Revenue is invested in tourism development projects, such as new attractions, marketing campaigns, and event sponsorships.

14.4. Beach Maintenance

Funds are used for beach maintenance, including cleaning, lifeguard services, and erosion control.

14.5. Parks and Recreation

Revenue supports parks and recreation facilities, such as playgrounds, sports fields, and community centers.

14.6. Examples of Projects Funded by Tourism Tax Revenue

  • Construction of new parks and recreational facilities.
  • Funding for local events and festivals.
  • Marketing campaigns to attract more visitors.
  • Improvements to public transportation.

Image: A well-maintained park in Myrtle Beach, showcasing public amenities funded by tourism taxes.

15. Tips for Saving Money on Your Myrtle Beach Vacation

While the tourism tax is unavoidable, there are ways to save money on your Myrtle Beach vacation.

15.1. Travel During Off-Peak Seasons

Consider visiting during the off-peak seasons (spring or fall) when accommodation rates are lower.

15.2. Look for Package Deals

Look for package deals that include accommodations, attractions, and meals.

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15.3. Take Advantage of Free Activities

Take advantage of free activities, such as visiting the beach, hiking, or attending free events.

15.4. Cook Your Own Meals

Cook some of your own meals to save money on dining.

15.5. Utilize Discounts and Coupons

Utilize discounts and coupons for attractions and restaurants.

15.6. Choose Accommodations Wisely

Choose accommodations wisely, considering factors such as location, amenities, and price.

16. Frequently Asked Questions (FAQs) About the Myrtle Beach Tourism Tax

16.1. What is the Myrtle Beach tourism tax?

The Myrtle Beach tourism tax, or Hospitality Fee, is a local tax applied to various hospitality-related services within Horry County, South Carolina.

16.2. Who pays the tourism tax?

The tourism tax is paid by consumers of specific services, including transient accommodations, admissions to amusement places, prepared food and beverages, and short-term rental of private passenger motor vehicles.

16.3. How is the tourism tax calculated?

The tax rate varies depending on the location of the business (inside or outside city limits) and the type of service provided. It is calculated as a percentage of gross proceeds from the sale of taxable services.

16.4. What is the purpose of the tourism tax?

The revenue generated from the tourism tax is used to fund public safety, infrastructure improvements, and tourism-related projects in Horry County.

16.5. How do businesses handle the tourism tax?

Businesses must register with the Horry County Hospitality Fee Department, collect the tax from customers, and report and remit the collected fees on a monthly basis.

16.6. What are the penalties for non-compliance?

Penalties for non-compliance include failure to file, late filing, and failure to pay, with penalties calculated daily based on a percentage of the fee due.

16.7. Can I appeal a decision made by the Hospitality Fee Department?

Yes, any person aggrieved by a decision may appeal the decision by written request within ten days after payment of the assessment under protest or notice of denial is received.

16.8. How can I save money on my Myrtle Beach vacation?

You can save money by traveling during off-peak seasons, looking for package deals, taking advantage of free activities, cooking your own meals, and utilizing discounts and coupons.

16.9. Where can I find more information about the Myrtle Beach tourism tax?

You can find more information on the Horry County Government website or by contacting the Horry County Hospitality Fee Department directly.

16.10. How does the tourism tax benefit visitors?

The tourism tax benefits visitors by funding improvements to public safety, infrastructure, and tourism-related projects, enhancing the overall experience in Myrtle Beach.

Planning a trip involves many details, and understanding the “myrtle beach tourism tax” is just one piece of the puzzle. By knowing how it works, you can budget effectively and appreciate its role in improving the destination.

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What is the Myrtle Beach Tourism Tax and How Does it Affect You?