CHARLESTON — Earlier this year, several municipalities across South Carolina reached a settlement with Airbnb after a statewide lawsuit accused the short-term company and others like it of failing to pay accommodations taxes and business license fees.
Now, some Charleston-area towns and cities have decided what to dedicate the money to, while others are still in the process of figuring that out.
The lawsuit against short-term rental companies included Airbnb, VRBO and TripAdvisor, as well as some South Carolina-based rental businesses. It was filed in 2021.
Nine towns, cities and counties including Charleston, North Charleston, Columbia, Myrtle Beach, Folly Beach, Isle of Palms, North Myrtle Beach and Hilton Head Island, were part of the original lawsuit. Mount Pleasant, Beaufort County, Edisto Beach, Port Royal and Greenville later joined.
The complaint stated the companies failed to pay local accommodations taxes and business license fees, despite collecting payment from rental operators and vacationers who use their sites.
Counties and municipalities can levy accommodations taxes, which come from hotels and rented lodgings, up to 3 percent. The fee is paid by the renter, collected by the hotel or business renting the space and then paid to the municipality.
The $60 million settlement reached in February is only for Airbnb while litigation continues with the other rental companies. The pot of money was set to be divided among the municipalities, with Charleston-area towns and cities receiving over $18 million.
Charleston County accepted $9.6 million of the settlement, the city of Charleston accepted $4.42 million, North Charleston accepted $956,587, Mount Pleasant accepted $494,000, Folly Beach accepted $1.6 million, and Isle of Palms accepted $1.1 million.
