MYRTLE BEACH, S.C. (WBTW)- The City of Myrtle Beach just reached a settlement with online travel companies including Expedia, Priceline, and Travelocity for allegedly renting hotel rooms and not paying a business license fee.
The city said they’re certainly going to start looking at Airbnb’s business licenses and how they pay the accommodations tax.
The city of Myrtle Beach said every person who rents out their house has to have a business license, and if you use a second or third party they have to have one as well.
“So if someone else is not paying a business license fee, and yet doing business inside the city they’re putting our local folks at a disadvantage,” said Mark Kruea, City of Myrtle Beach public information director.
The city said their business license office keeps a watchful eye. They check rental websites like Airbnb, and look into complaints that people are renting illegally.
JP Hesnan is the managing owner of Surf Dog Vacation Rentals. He said he’s required to collect accommodations tax on behalf of the property owners, but if you go through Airbnb it’s their responsibility.
“Airbnb is expected in this state to collect those taxes on behalf, but still that owner should have a business license,” said Hesnan.
Hesnan said you need to make sure you read Airbnb’s terms very carefully.
“Some areas they don’t say anything about the business license they just reference the agreement they have with the state of South Carolina to collect taxes on behalf of the state.
A business license is the key for the city to initially track that revenue,” said Hesnan.
The City of Myrtle Beach has approximately 10,000 business licenses.
Hesnan said Airbnb is one of dozens of sites for home rentals so the city has a lot to look into.
