HORRY COUNTY, SC- Rental property owners in Horry County could face a $500 fine if they don’t collect and pay accommodations and sales tax.
South Carolina passed a law in 2014 aiming to crack down on property owners who rent, but don’t pay the necessary fees. The law is called the Fairness in Lodging Act and allows cities and counties to charge a penalty of $500-$2,000 per week of rental. Horry County’s Administration Committee voted to suggest a fine of $500. The measure will need to go before Horry County Council before being passed.
Dunes Realty Vacation Rentals General Manager Ryan Swaim said many property owners skip out on paying accommodations and it creates unfair competition in the market.
“It’s a huge problem,” he said.
According to Swaim, those who choose not to collect accommodations are able to list their property for less.
“It certainly creates an un level playing field,” stated Swaim.
In addition, Swaim said tourist communities rely heavily on money collected through accommodation taxes to pay for services. The rates vary based on municipality, but Swaim said it can be 10% – 12% of the weekly rental price.
For example, a property owner that charges $5,000 per week of rental owes the city at least $500 in accommodations.
“The county has finally realized how much money they are missing by not being able to enforce collection of those taxes,” said Swaim.
However, he said the majority of property owners are unaware of the law requiring them to pay and he hopes the fine will bring it to their attention.
