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Hospitality Tax Information
Frequently Asked Questions
Q: What is a local hospitality tax?
A: The City of Easley City Council authorized the levy
of a two percent (2%) local hospitality tax on prepared food
and/or beverages, inclusive of alcoholic beverages, beer and
wine sold in establishments effective June 1, 2005.
Q: Does the hospitality tax reduce my business earnings?
A: No. The hospitality tax is similar to the state sales
tax in that it is a pass through to the customer. As a
business owner you will charge 2% for local hospitality
taxes remitted to the City of Easley.
Q: Where does this tax money go?
A: The City is required to deposit the funds into a
local hospitality tax fund maintained separately from the
General Fund in accordance with State law. The City’s use
of hospitality tax funds is for tourism related activities
and improvements.
Q: What is the definition of an establishment
responsible for local hospitality tax collections?
A: An establishment is a business which has a fixed
place of operations within the City and which from that
location sells prepared meals and/or beverages, inclusive of
alcoholic beverages, beer and wine, whether for on-premise
consumption, take-out, or delivery.
Q: What business types are required to collect and remit
this money to the City?
A: Restaurants, bars and lounges, private clubs, hotels
and motels, caterers, grocery stores, convenience stores (if
they sell prepared or modified foods and/or beverages) an
other food service establishments.
Q: What is considered a prepared meal?
A: A prepared meal would be any food and/or beverage,
inclusive of alcoholic beverages, beer and wine prepared or
modified by an establishment which at any time of sale is
ready for consumption by members of the public, regardless
of the actual quantity, presentation or packaging, without
regard to the time of day of the sale.
Q: How is this tax remitted to the City?
A: The hospitality tax collected shall be remitted to
the City on the reporting form provided in this booklet. The
forms must be postmarked by the 20th day of the month
following the closing date of the period for which the tax
payment is to be remitted. For example, taxes collected in
January must be postmarked by February 20th. Returns with a
U.S. Mail postmark (not a metered date) on or before the due
date are considered as timely filed and as such will be
allowed to take a 2% discount off of the tax amount due to
the City.
The tax must be remitted:
- On a monthly basis when the estimated amount
of tax is more that $50.00 per month. The
closing date is the last day of the month.
- On a quarterly basis when the estimated amount
of tax is $25.00 to $50.00 per month. The
closing dates are the last days of the months of
March, June, September and December of the
reporting year.
- On an annual basis when the estimated amount
of tax is less than $25.00 a month. The closing
date is the last day of December of the
reporting year.
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Q: What happens if my hospitality tax form is postmarked
after the 20th day following my closing period?
A: Returns with a U.S. mail postmark date (not metered
date) on or before the due date are considered as timely
filed. If the 20th day of the month falls on a Saturday,
Sunday, postal service holiday or City holiday, then
payments postmarked or made at the City’s Finance Office
on the next business day will be accepted as timely filed. A
5% late fee is imposed on the unpaid tax for each month, or
portion thereof, after the due date until paid.
Q: What happens if I fail to make the required
hospitality tax payments?
A: Local hospitality taxes due remaining unpaid 30 days
after the due date will be sent to the Business License
Inspector for enforcement. This may include a Municipal
Summons to appear in Municipal Court. It may also include
the revocation of an establishment’s business license.
Q: What happens if I lose my booklet?
A: Booklets will be mailed to businesses each December.
If you lose your booklet you may download the reporting
forms from our website at www.cityofeasley.org. You may also
contact the Finance Department at 864-855-7900, ext. 7206.
Q: If I own more than one business that is required to
remit hospitality taxes, do I have to send a separate check
for each location?
A: No, one check for all locations will be acceptable.
However, please submit a separate reporting form for each
location and mail the check and forms together.
Q: How long do I need to keep my records?
A: Every business required to remit taxes shall maintain
books and records showing the taxes due for a period of
three years after the tax is due. The City Clerk &
Treasurer, or his/her designee, shall have access to these
books and records to assure compliance with the City Code.
Q: Where should I send my hospitality tax payments?
A: The reporting form and payment should be delivered or
mailed to:
City of Easley
Finance Department
P.O. Box 466
Easley, SC 29641
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