Town Taxes & Fees

Business Related Town Taxes & Fees

The Town of Hilton Head Island requires any business operating within the limits of the Town, including home occupations, to obtain a Business License. The Business License fee is based upon the type of business, location, and the estimated gross revenue of the business for the remaining calendar year. Fees for new businesses are paid at the time the business is opened. The initial fee is based upon projection of the gross revenue and a pro rata percentage of the annual fee determined from the month of startup. The Business license fees will then be paid yearly upon renewal of the license.

Some business may require that the follwing taxes and fees also be paid to the Town based on the type of business:

Beach Preservation Fee and Accommodations Tax

All persons or businesses renting sleeping accommodations for ninety (90) days or less are required to open an account with the Town's Business License Department in order to remit quarterly payments of 3% based on their gross revenue by the 20th day of the month following each quarter. The breakdown is 2% going to the Beach Preservation Fee and 1% going to the Accommodations Tax.

Payment coupons for the current year will be mailed when an account is opened. Renewals will occur each year in January or February. Coupons shall be remitted by the 20th day of the month following the quarter to The Town of Hilton Head Island, One Town Center Court, Hilton Head Island, SC 29928. Beginning the 21st day of the month following the quarter, the penalty rate is 5% per month until paid.Note: if there is not any gross revenue to report, please send in your signed coupon marked -0- for posting to your record.

Upon the sale of a rental unit, please submit a Statement of Closure form to the Town's Business License Department to close the account. The statement may be submitted via hand delivery, mail, or fax (843)341-4637.

Hospitality Tax

Hospitality tax is paid by the consumer or patrons of restaurants, lounges, grocery stores, convenience stores and any other establishments that sell prepared food and beverages. This tax is based on 2% of the total gross sales price received for prepared food, meals and beverages sold.  It generates approximately $4.8 million annually that is dedicated to pay debt service on a $10 million bond for public safety projects and other capital improvement projects.

Payment Forms for the current year will be mailed when an account is opened. Renewals will occur each year in January or February. Forms shall be remitted by the 20th day of the month following the quarter to The Town of Hilton Head Island, One Town Center Court, Hilton Head Island, SC 29928. Beginning the 21st day of the month following the quarter, the penalty rate is 5% per month until paid. Note: if there is not any gross revenue to report, please send in your signed coupon marked -0- for posting to your record.

Upon the closure of a business, please submit a Statement of Closure form to the Town's Business License Department to close the account. The statement may be submitted via hand delivery, mail, or fax (843)341-4637.

Real Estate Transfer Fee

The Real Estate Transfer Fee is .25 of 1% on each real estate transaction in the Town. It generates an average of $4.2 million each year that is dedicated to the Land Acquisition Program. This fee is usually included in the closing costs of a real estate transaction. The fee is collected by Beaufort County for the Town.

Please contact the Town's Business License office at (843)341-4610 if you have any questions.