What is the Local Hospitality Tax?

Local Hospitality Tax is a tax, not to exceed two percent, on the sale of prepared meals
and beverages sold in establishments.

What is considered a prepared meal?

A prepared meal is any food and /or beverage, inclusive of alcoholic beverages, beer and
wine, prepared or modified by an establishment, which at the time of sale is ready for
consumption.

What items are taxed?

All food and/or beverage sales prepared or modified for immediate consumption. The following are examples of taxable items: 

• Produce (Vegetables, Fruit) cut, sliced, cored, etc., or prepared/modified on site (Ex: Vegetable and Fruit Trays)
• Meats and cheeses cut, sliced, or prepared on site (Ex: Meat and Cheese Trays)
• Salads made on site
• Sandwiches/subs prepared on site
• Bakery items cooked/baked on site
• Coffee brewed on site
• Popcorn made on site
• Ice cream prepared or served on site
• Seafood steamed/cooked on site
• Grilled hamburgers and hot dogs, pizza, nachos, chicken, etc.
• Packaged dinners cooked on site (Thanksgiving Dinner, etc.)
• Fountain drinks
• Any food prepared, modified, or cooked on site by an employee or contractor
• Any prepared foods or meals that are subject to South Carolina Sales Tax
• Any served beverage, including beer, wine, and liquor

Note: The above list serves as an example only and is not an all-inclusive list of taxable items.

What items are exempt from tax?

• Cold, canned or bottled drinks in a vending machine on site
• Consolidating fruit into a basket (Fruit baskets)
• Prepackaged items (not prepared or modified on site) consolidated into a larger container to make one package (Gift Basket)
• Packaged dinners that are not cooked or modified on site
• Ready-to-eat prepackaged food that a customer re-heats on site (Customer is making the food consumable)
• Prepackaged cans, boxes, or jars of food
• Bags of chips, pretzels, nuts, candy or other prepackaged food items

Note: The above list serves as an example only and is not an all-inclusive list of exempt taxable items.

Who is responsible for collecting and remitting the Local Hospitality Tax?

Restaurants, bars, and lounges, private clubs, hotels and motels, caterers, grocery stores,
convenience stores and other food establishments are responsible for collecting this tax
from patrons and are required to remit such collections to the local government. Failure
to collect taxes does not relieve any business from making the required remittances to the
local government.

How should the tax be remitted?

The Local Hospitality Tax must be remitted to the County on a monthly basis when the estimated amount of average local hospitality tax is more than $50.00 a month, on a quarterly basis when the estimated amount of average local hospitality tax is $25.00 to $50.00, and on an annual basis when the estimated amount of average local hospitality tax is less than $25.00 a month.

When will the Hospitality Fee/Tax go into effect and when will my first remittance be due?

Dorchester County’s two percent (2%) Local Hospitality Tax is effective on January 1,
2019. The deadline for remittance of the local hospitality tax is the 20^th day of the month following the closing date of the period for which the hospitality tax is calculated.  If the 20^th day of the month falls on a Sunday or postal service holiday, then payment on the next business day will be accepted as timely filed.