When must a South Carolina real estate agent or listing service notify the Department about a short-term rental property (per SC IL #11-19)?

Plain-English summary

If you are a South Carolina real estate agent, broker, or listing service handling short-term (less-than-90-day) rental accommodations for an owner, you must tell the Department of Revenue when the owner drops that property from your listings.

South Carolina imposes a 7% state sales tax on accommodations — the gross proceeds from renting rooms, lodgings, or sleeping accommodations — under S.C. Code § 12-36-920. Two exceptions apply: (1) accommodations supplied to the same person for 90 or more continuous days, and (2) a facility of fewer than six sleeping rooms on the same premises that is used as the place of abode of the owner or operator.

The person liable for the tax is whoever furnishes the accommodations — the owner or a real estate agent, listing service, broker, or similar entity handling the accommodations for the owner. That person must obtain a retail license and remit the tax monthly. (A person furnishing accommodations to transients for one week or less in any calendar quarter need not obtain a retail license but must remit the tax annually by April 15 of the following year.)

The notification requirement. Under § 12-36-920(C), when an agent, broker, or listing service has been handling an owner's property for taxable short-term rentals and the owner decides to no longer list that property with them, the agent must notify the Department. The notice must include:

1. the owner's name,
2. the owner's address,
3. the rental property's address, and
4. the date the property was dropped from the listings.

The notice may be sent each time a listing is dropped, or twice a year — by July 31 for listings dropped January through June, and by January 31 for listings dropped July through December — mailed to: South Carolina Department of Revenue, Sales Office Audit – Accommodations Notification Information, P.O. Box 125, Columbia, South Carolina 29214.

What this means for you

If you are a real estate agent, broker, or listing service

When you handle taxable short-term rentals and an owner stops listing a property with you, report it to the Department with the four required data points. This lets the Department know the accommodations-tax responsibility for that property may have shifted (for example, back to the owner). Batching the reports semiannually (by July 31 and January 31) is expressly allowed.

If you are a rental property owner

If your rentals are for periods under 90 days, they are generally subject to the 7% accommodations tax, and either you or your agent must be licensed and remit it. If you move a property off an agent's listings, expect the agent to notify the Department, and make sure the tax obligation is covered going forward.

Common questions

Q: Who is liable for the sales tax on accommodations?
A: The person furnishing the accommodations — the owner or the real estate agent, listing service, or broker handling them — who must hold a retail license and remit the 7% tax monthly.

Q: When does the notification duty apply?
A: When an agent, broker, or listing service that handled taxable short-term rental property for an owner has that property dropped from its listings, it must notify the Department.

Q: What must the notice include, and when is it due?
A: The owner's name and address, the rental property's address, and the date the property was dropped. It may be sent each time or twice a year — by July 31 for January-June drops and by January 31 for July-December drops.

Q: Are any rentals exempt from the accommodations tax?
A: Yes — accommodations supplied to the same person for 90 or more continuous days, and facilities of fewer than six sleeping rooms on the same premises used as the owner's or operator's own residence.

Subject

Real Estate Agents, Brokers and Listing Services – Requirement to Notify the Department of Revenue Regarding Certain Rental Property Subject to the Sales Tax on Accommodations

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL11-19.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214

SC INFORMATION LETTER #11-19

SUBJECT:

Real Estate Agents, Brokers and Listing Services – Requirement to
Notify the Department of Revenue Regarding Certain Rental Property
Subject to the Sales Tax on Accommodations

DATE:

November 18, 2011

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
SC Revenue Procedure #09-3

SCOPE:

An Information Letter is a written statement issued to the public
to announce general information useful in complying with the
laws administered by the Department. An Information Letter has
no precedential value.

Introduction:
A 7% state sales tax is imposed upon the gross proceeds from the rentals or charges for sleeping
accommodations furnished at any place in which rooms, lodgings, or sleeping accommodations
of any kind are furnished. 1 The sales tax on accommodations does not apply to (1) the lease or
rental of accommodations supplied to the same person for a period of 90 or more continuous
days 2 or (2) the lease or rental of accommodations at a facility consisting 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. 3
The person liable for the tax is the person furnishing the accommodations, whether such person
is the owner or a real estate agent, listing service, broker or similar entity handling the
accommodations for the owner. 4 The person liable for the sales tax on accommodations must
obtain a retail license and remit the tax to the Department on a monthly basis. 5
Notification Requirement:
The statute imposing the sales tax on accommodations requires real estate agents, listing
services, brokers or similar entities handling the accommodations for an owner to notify the
Department “if rental property, previously listed by them, is dropped from their listings.” 6

1

Therefore, if a real estate agent, broker, or similar listing service is handling the accommodations
for an owner of a home, condominium unit, timeshare unit or other rental property, and has been
renting the property for periods of less than 90 continuous days whereby the rentals are subject to
the sales tax on accommodations, then the real estate agent, broker, or similar listing service
must notify the Department if the owner decides to no longer list that rental property with them.
The notification should be sent to:
South Carolina Department of Revenue
Sales Office Audit– Accommodations Notification Information
P.O. Box 125
Columbia, South Carolina 29214
The notifications should include the following information concerning each listing:

1. Name of the owner of the rental property,
2. Address of the owner of the rental property,
3. Address of the rental property, and
4. The date the rental property was dropped from the listings of the real estate agent,
   broker, or similar listing service.
   The notification may be, but does not need to be, sent each time a listing is dropped. The
   notification may be sent twice a year – once, by July 31st, for all listings dropped from January
   through June, and once, by January 31st, for all listings dropped from July through December.
   If you have any questions regarding this notification requirement, please contact the Department
   of Revenue at (803) 898-5970.

1

Code Section 12-36-920.
Code Section 12-36-920(A) and SC Regulation 117-307.4.
3
Code Section 12-36-920(A) and SC Regulation 117-307.3.
4
Code Section 12-36-920(C) and (E) and SC Regulation 117-307.3(C).
5
Note: Persons furnishing accommodations to transients for one week or less in any calendar quarter are not
required to obtain a retail license, but are required to remit the tax annually by April 15th of the following calendar
year.
6
Code Section 12-36-920(C).
2

2