The City of Columbia adopted Ordinance No 2003-017 effective June 30, 2003 imposing a 2% local hospitality tax.
IMPOSED: The local hospitality tax of two percent (2%) is imposed on the gross proceeds of the sale of prepared food and beverages (for immediate consumption or carry out) by a restaurant, hotel, motel, bar, caterer or other food service facility within the city and shall be the liability of the customer. This tax also applies to meals and beverages sold in establishments licensed for on premise consumption of alcoholic beverages, beer, or wine.
COLLECTION: The tax imposed shall be collected from the customer when payment for meals or beverages is tendered and shall be held in trust for the benefit of the city until remitted.
REMITTANCE: Payment of the hospitality tax shall be remitted by the vendor to the city on a monthly basis, along with such return or form as established by the city for such purposes, not later than the twentieth day (20th) of the month and shall cover the tax due for the previous month. Any tax not timely remitted shall be subject to a penalty of five percent (5%) of the sum owed for each month or portion thereof until paid. The failure to collect from the customer the tax imposed by the ordinance shall not relieve the vendor from making the required remittance. Remittance and required form should be mailed to: City of Columbia Business License Division/Hospitality Tax, P.O. Box 147, Columbia, SC 29217. If there is no gross revenue to report, please return your signed form indicating zero sales.
As required by city ordinance, a special account has been established to be known as the local hospitality tax account into which the taxes remitted shall be deposited by the city and used solely for the purposes provided by law.
FREQUENTLY ASKED QUESTIONS ABOUT THE
CITY OF COLUMBIA HOSPITALITY TAX
What is the local Hospitality Tax? A 2% fee imposed by the City of Columbia on the purchase of prepared or modified foods and/or beverages intended for immediate consumption or carry out.
Who is responsible for collecting and remitting the 2% Hospitality Tax? Restaurants, hotels, motels, bars and / or lounges, caterers, ice cream shops, bakery shops and any other food service facilities or establishments of any kind (including convenience and grocery stores) with specified areas for preparing food and beverages.
Which foods and beverage sales are subject to the Hospitality Tax? All food and /or beverage sales prepared or modified for immediate consumption, carry-out or catered. Examples: Fountain drinks, frozen drinks, coffee, cappuccino, prepared sandwiches, salads, bakery items (doughnuts, cakes, cookies, pies and breads), heated foods (pizza, nachos, hotdogs, sandwiches, chicken, vegetables), fruit trays, vegetable trays and deli meats and cheeses purchased by the pound. This list is not inclusive, but it is simply in place to help you determine which items are subject to the hospitality tax.
Which foods and beverage sales are not subject to the Hospitality Tax? Pre-packaged foods, bulk or pre-packaged cold deli products, canned or bottled beverages which are not sold for immediate consumption, boxes or jars of food, bags of chips, pretzels, nuts, candy or other pre-packaged food items.
How will this tax be remitted to the City of Columbia? The tax collected by the seller or provider of the service shall be remitted to the City of Columbia along with a form provided by the city by the 20th day of the month and shall cover sales for the previous month.
a. On a monthly basis when the estimated amount of average collections is more than fifty ($50.00) dollars a month (annual gross receipts in excess of $30,000).
b. On a quarterly basis when the estimated amount of average collections is between twenty-five ($25.00) dollars to fifty ($50.00) dollars a month (annual gross receipts less that $15,000).
c. On an annual basis when the estimated amount of average collections is less then Twenty-five ($25.00) dollars a month (annual gross receipts less than $15,000).
What if my Hospitality Tax payment is delinquent? A penalty of 5% per month must accompany all delinquent remittances.