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News Release

Town receives $1.7 Million in Accommodations Tax Payment for Fourth Quarter of Fiscal Year 2020

Release Date: July 28, 2020

Contact Information:
Carolyn Grant email icon , Communications Director, 843-341-4618

The Town of Hilton Head Island recently received $1.7 million, its state Accommodations Tax (ATAX) payment for the fourth quarter of fiscal year 2020 that ended June 30th.

The amount - approximately $1,730,046 - represented tax collected for April, May and June activity, which included temporary shutdowns for the COVID-19 pandemic response. This total compares to $2,517,294 for the same quarter last year or a 31.3 % decline of $787,248.

"This is a welcome surprise from our outlook earlier in the pandemic, when short-term rentals were temporarily halted and our beach and community parks were closed briefly," said Town Manager Stephen Riley. "Town Council implemented a mask ordinance to underscore the importance of being careful in this environment. The demand to visit the Town is strong. Our collections reflect that."

When taken as a full fiscal year, collections totaled $6,490,405, which is only 5.7% or  $389,621 less than last fiscal year’s amount of $6,880,027. Stated another way, even with the pandemic, state ATAX collections for the year totaled 94.3% of last year’s totals.

Riley said the ATAX collections demonstrate the resiliency of the Town's economic engine, and point toward getting back to normal under the current circumstances.

"The Town is experiencing strong levels of occupancy, which is an indicator of economic activity on the Island. It is only one indicator of many as the Town Council had previously worked diligently to diversify its revenue streams. This particular revenue stream is an important component of a tourist-centric economy," Riley said.

Town of Hilton Head Island State Accommodations Tax (ATAX) Collections on a Fiscal Year Basis
  2020 2019 +/- $ +/- %
Quarter 1 3,223,818 3,034,478 189,340 6.2%
Quarter 2 950,416  855,628 94,788 11.1%
Quarter 3 586,126 472,626 113,500 24.0%
Quarter 4 1,730,046 2,517,295 (787,249) -31.3%
Total 6,490,406 6,880,027 (389,621) -5.7%