S.C. Code Regs. 117-307.3 — Certain Facilities Not Subject to the Tax

(A) The tax applies to the gross proceeds from the rental or charges for any rooms, lodgings or
accommodations furnished to transients by any hotel, inn, tourists court, motel, residence, or any place
in which rooms, lodgings or accommodations are furnished to transients for a consideration, except
where such facilities consist of less than six sleeping rooms, contained on the same premises, which is
used as the place of abode of the owner or operator of such facilities. For this exception to apply, the
facility must serve as the owner's or operator's ''place of abode'' during the same times at which the
remaining sleeping rooms are rented to transients and the rooms must not be rented to transients by a
person other than the owner or operator using the facility as his or her ''place of abode.'' See
subsection C below.
Examples illustrate some of the situations as to when the exception applies or does not apply to an
individual renting sleeping accommodation at a home with less than six sleeping rooms to a transient
for less than 90 continuous days (See subsection B below).
(1) W owns a home with less than six sleeping rooms and lives in the home throughout the year.
He operates this home as a ''bed and breakfast'' by renting the remaining sleeping rooms to
vacationers on a daily or weekly basis. W rents these rooms to vacationers himself and does not
employ the services of a real estate agent or broker.
The rentals by W of these rooms to vacationers qualify for the exception in the statute; therefore,
the rental charges paid to W by the vacationers are not subject to the sales tax on accommodations
under Code Section 12-36-920.
(2) X owns a home with less than six sleeping rooms and uses the home only for one or two weeks a
year for family vacations. She rents the home to vacationers during the rest of the year on a weekly
basis. She rents it herself and does not employ the services of a real estate agent or broker.
The rentals by X of the home to vacationers do not qualify for the exception in the statute;
therefore, the rental charges paid to X by the vacationers are subject to the sales tax on accommoda-
tions under Code Section 12-36-920.
(3) Y owns a home with less than six sleeping rooms and lives in the home throughout the year. He
operates this home as a ''bed and breakfast'' by renting the remaining sleeping rooms to vacationers on
a daily or weekly basis. However, Y never rents these rooms to vacationers himself. He employs the
services of a real estate agent who rents the remaining sleeping rooms for him.
The rentals by the real estate agent of these rooms to vacationers for Y do not qualify for the
exception in the statute; therefore, the rental charges paid to the real estate agent by the vacationers
are subject to the sales tax on accommodations under Code Section 12-36-920 with the real estate
agent liable for the tax.
(4) Z owns a home with less than six sleeping rooms and lives in the home throughout the year. He
operates this home as a ''bed and breakfast'' by renting the remaining sleeping rooms to vacationers on
a daily or weekly basis. He employs the services of a real estate agent who rents the remaining
sleeping rooms for him. However, sometimes Z rents these remaining rooms to vacationers himself.
The rentals by the real estate agent of these rooms to vacationers for Z do not qualify for the
exception in the statute; therefore, the rental charges paid to the real estate agent by the vacationers
are subject to the sales tax on accommodations under Code Section 12-36-920 with the real estate
agent liable for the tax.
The occasional rentals by Z of these rooms to vacationers qualify for the exception in the statute;
therefore, the rental charges paid to Z by the vacationers are not subject to the sales tax on
accommodations under Code Section 12-36-920.
(B) The gross proceeds derived from the lease or rental of accommodations supplied to the same
person for a period of 90 continuous days shall not be considered proceeds from transient.
(C) Real estate agents, brokers, corporations or listing services leasing or renting accommodations,
whether owned by them or others, to persons for periods of less than 90 continuous days are retailers
liable for the sales tax on accommodations.