Frequently Asked Questions

How do I determine if I need a Business License?
Every business operating within the Town of Hilton Head Island limits shall be required to have a Business License for each location including home occupations.

How do I determine if my location is zoned for my type of business?
Please contact the Planning Department at Town Hall (843) 341-4681 to discuss location and options.

How do I find assistance for new business owners?
You may contact SCORE (Service Corps of Retired Executives) at the Chamber of Commerce (843)785-3673, or you may call SBDC (Small Business Development Center) at the University of South Carolina (843)208-8259.

How do I determine how many rental units I can rent out without obtaining a Business License?
Starting in 2007, according to our ordinance, you are required to obtain a Business License if you own and rent 2 or more residential rental units long or short term within the Town.

How do I determine if while working under someone else who has a Business License would require me to obtain a Business License?
If you are not on that person's payroll with taxes deducted out of your paycheck and receive a 1099 form, you are considered self-employed and you would need a Business License.

How do I register the name of my business?
The Town does not register names of business, but you can check with us by calling (843)341-4677 to see if anyone is presently using your potential name within the Town of Hilton Head Island. You may also check with the Secretary of State to check if anyone has Incorporated the name you would like to use and the laws governing this issue.

What is the Beach Preservation Fee?
A uniform fee equal to 2% is imposed on the gross proceeds derived from the rental for any rooms (excluding meeting rooms), campgrounds spaces, recreational vehicle spaces, lodgings or sleeping accommodations furnished to transients by any hotel, inn, condominium, motel, "bed and breakfast", residence or any other place in which rooms, lodgings or sleeping accommodations are furnished to transients within the Town of Hilton Head Island, South Carolina.

What is Accommodations Tax?
A local accommodations tax equal to 1% is hereby imposed on the gross proceeds derived from the rental of any rooms (excluding meeting rooms), campgrounds spaces, recreational vehicle spaces, lodgings or sleeping accommodations furnished to transients by any hotel, inn, condominium, motel, "bed and breakfast", residence or any other place in which rooms, lodgings or sleeping accommodations are furnished to transients within the Town of Hilton Head Island, South Carolina.

If you own residential property in the Town of Hilton Head Island and you rent it short term, you need to know the following rules and regulations:

What are the Town's Accommodation Tax/Beach Preservation Fee requirements?
Town Code Sec 4-10-30 and 4- 9-30 requires anyone renting residential sleeping accommodations to the same person for less than 90 days to collect and remit Accommodations and Beach Preservations Fees (ATX). Additionally, other state and county taxes must be collected. If you own residential rental property you need to know the following:

If you own more than one rental property, you will need a business license in addition to an ATX permit.
If you rent through a property management company and they remit the payments on your behalf, you must provide the name of the management company.
If your property is used for long term rentals, a copy of the lease must be submitted.

Business License/Accommodation Tax and Beach Preservation Fee Permit/Application

What makes up the 11% tax that is charged on rentals?

Payable to SC Dept. of Revenue	Payable to the Town of Hilton Head Island
5% - state sales tax	2% - beach preservation fee
2% - state accommodations tax	1% - local accommodations tax
1% - Beaufort County Transportation Tax

How do I pay the Town of Hilton Head Island Taxes and Fees?
The Beach Preservation Fee, Accommodations Tax and Hospitality Tax shall be remitted to The Town of Hilton Head Island, South Carolina.

Payment of the Beach Preservation & Accommodations Tax collected the first quarter (January, February, March) shall be due on April 20th of the calendar year.
Payment of the Beach Preservation & Accommodations Tax collected the second quarter (April, May, June) shall be due on July 20th of the calendar year.
Payment of the Beach Preservation & Accommodations Tax collected the third quarter (July, August, September) shall be due on October 20th of the calendar year.
Payment of the Beach Preservation & Accommodations Tax collected the fourth quarter (October, November, December) shall be due on January 20th of the calendar year immediately following.

How do I pay the SC Department of Revenue?
Anyone needing to set up an State Accommodations Tax account can get the necessary form from their website at (803)898-5788 or www.sctax.org. The form is the SCTC111. Complete the form and send in $50.00 for the license. The form gives a number to contact the Registration Section with any questions.

How and where do I remit my Town payments?
You must obtain an ATX permit number and submit your payments as follows:

Each credit card payment is limited to $2,500.

Online
By fax: (843) 341-4637, credit card payments only.
By mail: Credit card and checks to this address: Hilton Head Island Town Hall One Town Center Court Hilton Head Island, SC 29928
In person: Credit card, cash and checks will be accepted at Town Hall.

What else do I need to know?
Penalties and fines associated with non-compliance with application and remittance requirements:

Late fees of 5% of the unpaid amount...for each month or portion thereof after the due date until paid will be assessed.
Accounts with payments outstanding two weeks after the due date may be subject to a municipal summons with fines of up to $1,092.50.
Continued non-payment of amounts due may result in liens being placed on.

SC Dept of Revenue (SCDOR):
If operating a retail business a State Retail License must be obtained. New businesses should contact the SCDOR to determine their process for applying for a tax ID number and certificates, payment remittance and timeframes. Contact (803)898.5788 or www.sctax.org.

How do I set up an account to pay my State Sales Tax and State Accommodations Tax?
Contact the South Carolina Department of Revenue at (803)898-5788 or www.sctax.org to set up your account.

Who is considered a transient?
Anyone leasing or renting sleeping accommodations for a period of less than ninety (90) days.