South Carolina Code of Regulations › Chapter 117 - DEPARTMENT OF REVENUE › Article 11 - SALES AND USE TAX REGULATIONS › Section 117-307.3 - Certain Facilities Not Subject to the Tax

Current through Register Vol. 48, No. 6, June 28, 2024
(A) The tax applies to the gross proceeds
			 from the rental or charges for any rooms, lodgings or accommodations furnished
			 to transients by any hotel, inn, tourists court, motel, residence, or any place
			 in which rooms, lodgings or accommodations are furnished to transients for a
			 consideration, except where such facilities consist of less than six sleeping
			 rooms, contained on the same premises, which is used as the place of abode of
			 the owner or operator of such facilities. For this exception to apply, the
			 facility must serve as the owner's or operator's "place of abode" during the
			 same times at which the remaining sleeping rooms are rented to transients and
			 the rooms must not be rented to transients by a person other than the owner or
			 operator using the facility as his or her "place of abode." See subsection C
			 below.
Examples illustrate some of the situations as to when the
				exception applies or does not apply to an individual renting sleeping
				accommodation at a home with less than six sleeping rooms to a transient for
				less than 90 continuous days (See subsection B below).
(1) W owns a home with less than six sleeping
			 rooms and lives in the home throughout the year. He operates this home as a
			 "bed and breakfast" by renting the remaining sleeping rooms to vacationers on a
			 daily or weekly basis. W rents these rooms to vacationers himself and does not
			 employ the services of a real estate agent or broker.
The rentals by W of these rooms to vacationers qualify for the
				exception in the statute; therefore, the rental charges paid to W by the
				vacationers are not subject to the sales tax on accommodations under Code
				Section
				12-36-920.
(2) X owns a home with less than
			 six sleeping rooms and uses the home only for one or two weeks a year for
			 family vacations. She rents the home to vacationers during the rest of the year
			 on a weekly basis. She rents it herself and does not employ the services of a
			 real estate agent or broker.
The rentals by X of the home to vacationers do not qualify for
				the exception in the statute; therefore, the rental charges paid to X by the
				vacationers are subject to the sales tax on accommodations under Code Section
				12-36-920.
(3) Y owns a home with less than
			 six sleeping rooms and lives in the home throughout the year. He operates this
			 home as a "bed and breakfast" by renting the remaining sleeping rooms to
			 vacationers on a daily or weekly basis. However, Y never rents these rooms to
			 vacationers himself. He employs the services of a real estate agent who rents
			 the remaining sleeping rooms for him.
The rentals by the real estate agent of these rooms to
				vacationers for Y do not qualify for the exception in the statute; therefore,
				the rental charges paid to the real estate agent by the vacationers are subject
				to the sales tax on accommodations under Code Section
				12-36-920
				with the real estate agent liable for the tax.
(4) Z owns a home with less than six sleeping
			 rooms and lives in the home throughout the year. He operates this home as a
			 "bed and breakfast" by renting the remaining sleeping rooms to vacationers on a
			 daily or weekly basis. He employs the services of a real estate agent who rents
			 the remaining sleeping rooms for him. However, sometimes Z rents these
			 remaining rooms to vacationers himself.
The rentals by the real estate agent of these rooms to
				vacationers for Z do not qualify for the exception in the statute; therefore,
				the rental charges paid to the real estate agent by the vacationers are subject
				to the sales tax on accommodations under Code Section
				12-36-920
				with the real estate agent liable for the tax.
The occasional rentals by Z of these rooms to vacationers
				qualify for the exception in the statute; therefore, the rental charges paid to
				Z by the vacationers are not subject to the sales tax on accommodations under
				Code Section
				12-36-920.