Lancaster County Finance Department

Lancaster County Local Hospitality Tax (2%) — Registration and Remittance

Ordinance 2016-1402, adopted on third reading on September 26, 2016 (first reading June 13, 2016; second reading August 8, 2016), imposes a uniform 2% tax on the sales of prepared meals and beverages sold in establishments within the County (§2), where "County" means the unincorporated area (§1(a)); collection began January 1, 2017 (§12). Because §1(a) limits the tax to the unincorporated area, a business inside the City of Lancaster or one of the towns is outside this county tax. The ordinance defines prepared meals and beverages as products sold ready for consumption on or off the premises in businesses classified as eating and drinking places, including lunch counters, restaurants, convenience stores and grocery delicatessens, so a retail store is covered only where it sells prepared food. Under §3 the tax is remitted to the County Finance Office monthly when it averages over $50 a month, quarterly at $25 to $50 a month and annually under $25 a month, and is due by the 20th day of the month following the closing date (timely if postmarked by then). Under §7 the late penalty is 5% per month on the original tax due, and §9 assigns administration to the County Finance Office. Under §10 the tax runs for the later of 20 years from its effective date or the final payment on debt it secures, unless extended. The county's FAQ (10/2020) lists as exempt "Canned or bottled drinks, pre-packaged foods, pre packaged snack items, alcohol/beer/wine not intended for consumption on the premises"; the ordinance itself contains no exemption section. S.C. Code §6-1-720 caps a local hospitality tax at 2%. Contact the Finance Department at 803-416-9385, PO Box 1809, Lancaster, SC 29721; the county's Local Hospitality Tax page offers online payment.