South Carolina Taxes Mandatory Hurricane Insurance Charges

Thursday, November 6th, 2014

 
 
An image of a hurricane taken from a satelitte.
Share
Link
South Carolina
General

The South Carolina Department of Revenue recently released a ruling on the taxability of hurricane rental insurance charges.

Along the coast of South Carolina, it is common for hotels, resorts, and other rental accommodations to offer hurricane rental insurance. The insurance protects the vacationer from loss if there is a mandatory evacuation due to a hurricane. Usually, the charge is optional, but it can be mandatory.

South Carolina taxes room rentals of less than 90 continuous days. Tax applies to room rental fees and any additional guest charges. General room, lodging, and accommodation charges are taxed at one rate. Charges for laundry, in-room movies, and telephone calls are taxed at a different rate. South Carolina does not tax hurricane insurance alone.

When hurricane insurance is mandatory, it is part of the accommodation fee. Therefore, mandatory hurricane insurance fees are taxed at the accommodation tax rate. Optional hurricane insurance is not part of the accommodation fee and is not a taxable service. Therefore, optional hurricane insurance fees are not taxed.

http://www.sctax.org/NR/rdonlyres/FF07ECA6-FC8F-4D2E-B96D-492EE87BCD70/0/RR147.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Hot-Air Balloon Rides in Missouri are Taxable When...

Wednesday, June 19th, 2019 -Missouri recently released a letter ruling addressing the taxation of hot-air balloon rides. The taxpayer was ...

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...

Marketplace Facilitators to Collect Tax in Vermont

Thursday, June 13th, 2019 -Vermont recently passed a bill requiring marketplace facilitators to collect and remit sales tax on retail sal...

Agricultural Rotary Cutter Taxable in Arkansas

Wednesday, June 5th, 2019 -The Arkansas Department of Finance and Administration (DFA) recently determined that a rotary cutter used in t...

Wholesale Exemption Applies to Meals Purchased by...

Monday, June 3rd, 2019 -The Colorado Supreme Court recently ruled that a food service vendor made exempt wholesale sales of food and f...