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Hospitality Tax

What is the Hospitality Tax?

A tax equal to two percent of the total gross sales price received for prepared foods, meals and beverages sold.

Who is responsible for the collection and remittance of the Hospitality Tax?

It is the responsibility of the establishment to collect the tax from the consumer, and to timely remit the funds to the Town. Hospitality Tax shall be collected at the time of purchase of the prepared meal or beverage.

Who pays the Hospitality Tax?

Hospitality tax is paid by the consumer or patrons of restaurants, lounges, grocery stores, convenience stores, and any other establishments that sell prepared food and beverages. The establishment then pays the collected taxes to the Town.

What are the Hospitality Tax Revenues Used For?

This tax generates approximately $5 million annually that is dedicated to pay debt service on a $10 million bond for public safety projects and other capital improvement projects.

Payment Options

  • Pay Online
    • Payments may be made via E-Check or Credit card
      • Credit card payments are limited to in person and/or online processing with a threshold of $5,000.
      • E-Check payments are limited to a threshold of $25,000
    • You will need your PIN code located in the upper right corner of your Tax Payment Form.

      Pay Your Taxes Online

  • Pay by Mail:
    • Town of Hilton Head Island
      Attention: Revenue Services
      One Town Center Court
      Hilton Head Island, SC 29928
  • Credit card payments are limited to in person and/or online processing with a threshold of $5,000.
    • To ensure cardholder security, we will not accept credit card information in hardcopy format (received by mail and/or FAX).
    • The hardcopy documents will not be processed and will be returned to you.

When are My Payments Due?

Hospitality Tax payments for are due quarterly in accordance with the following schedule.

Collected Due
First Quarter (January, February, March) April 20th of the calendar year
Second Quarter (April, May, June) July 20th of the calendar year
Third Quarter (July, August, September) October 20th of the calendar year
Fourth Quarter (October, November, December) January 20th of the calendar year immediately following

What if my tax payment is late?

Failing to remit payment by the due date shall result in penalties being assessed. Penalties are calculated as follows:

  • 5 percent of the unpaid amount for each month past due until paid in full.
  • Unless payments are received by the quarterly due dates, additional penalties and fees may apply.

What makes up the 8 percent tax that is charged on prepared food?

  • Payable to SC Department of Revenue: 6 percent- State Sales Tax
  • Payable to the Town of Hilton Head Island: 2 percent - Hospitality Tax

What makes up the 13% tax that is charged on prepared alcoholic beverages?

  • 6 percent- State Sales Tax
  • 2 percent- Hospitality Tax
  • 5 percent- State Alcohol Tax

Closing Your Business

Upon the closure of a business, please submit a Statement of Closure form to the Town's Revenue and Collections Office. The form must be signed by a principal of the company and may be submitted via hand delivery, mail, or fax.

Questions?

Contact Revenue Services at 843-341-4677.