The Fairness in Lodging Act’s Impact on Vacation Rental Owners

The recently enacted Fairness in Lodging Act grants S.C Department of Revenue data sharing and enforcement assistance to SC cities and counties seeking to collect taxes from owners of vacation rentals. The new law allows municipalities to share information they have on vacation rental owners with the S.C. Department of Revenue, to give notice in property tax bills, and to assess fines. Websites such as VRBO.com will also be asked to require owners to include local and state taxes in their prices.

Business licenses and accommodations and sales taxes have always been required for individual property owners earning income from rental properties. Many local officials say quantifying the impact the uncollected money has had on cities and counties is difficult, but believe that several million dollars of tax collections may result from the enhanced enforcement the new law provides.

Please contact us if you have any questions about how the new law will affect you or your finances.