Public Information

Hospitality Tax, Accommodations Tax and Hospitality Fee changes coming to Myrtle Beach

UPDATE (12/11/20) – Implementation of these fee changes has been delayed due to a Supreme Court ruling.  No new start date has been set, but it will not be January 1, 2021.  

In March 2019, the City of Myrtle Beach approved an increase in its Local Accommodations Tax from 0.5% to 3% and implemented its 2% Hospitality Tax.  In July 2019, the city began to collect these taxes, and Horry County ceased collection of its 1.5% Hospitality Fee inside the city’s corporate limits.  Recently, the city and the county reached a settlement of the lawsuit contesting the county’s collection of the 1.5% Hospitality Fee from city businesses. 

The settlement agreement provides, among other things, that the county will resume collections of its 1.5% Hospitality Fee inside the City of Myrtle Beach, but will pay to the city all amounts collected from city businesses, less a 1% administrative fee.  The city, in turn, will “reset” the rates of its Hospitality Fee and Tax and Local Accommodations Tax to the rates it charged prior to July 2019.   Pictured here is a chart that provides a summary of the changes which will be effective January 1, 2021.

The Myrtle Beach City Council is expected to approve these changes by ordinance during a special meeting on Tuesday, December 1, and at the regular meeting on Tuesday, December 8.  On January 1, 2021, businesses will collect and pay to the City of Myrtle Beach the following fees and taxes, just as they did prior to July 1, 2019.  You will receive your 2021 Reporting Forms in December.  

  • Accommodations and Short Term Rental Providers – Collect 0.5% Local Accommodations Tax and 1% Hospitality Fee
  • Prepared Food and Beverage Providers – Collect 1% Hospitality Fee
  • Paid Places of Admissions – Collect 1% Hospitality Fee

What about Hospitality Fee payments to Horry County? You should expect to receive a separate communication from the county regarding the resumed collection of the county’s 1.5% Hospitality Fee from businesses located inside the city.  This also will be effective as of 12:00 a.m. on January 1, 2021.