Serving Barnwell County and it's neighbors since 1852
Dukes BBQ is a popular eatery in Blackville, but a new hospitality tax means the buffet, along with other restaurants, will cost patrons more.
Famously Made Wings & Potato, LLC opened fairly recently in the Town of Blackville.
Restaurants like Russell’s Pizza have multiple locations in the region. Russell’s Pizza experienced push back from the community when a similar tax was introduced in Wagener.
Miller’s Bread Basket on Main Street is one of the Blackville establishments where a two percent hospitality tax is going to be imposed on prepared food and beverages.
Restaurants like Duke’s BBQ have multiple locations in the region. The owner of the Blackville location is concerned about the impact of this new tax on his business.
The Town of Blackville passed two ordinances that were met with discontent by local residents and restaurant owners. These taxes came into effect on October 19.
The council passed a local hospitality tax and a local accommodations tax, which each implement a two percent tax on consumers of restaurants and lodging in town limits. The first reading was held on Sept. 18, and the second and final reading was held at an Oct. 19 public hearing. Both were passed unanimously.
“The reason we are adopting this ordinance is to help us with the revenue that we need to come into the town to help move things forward, to make the town better,” said Mayor Ronnie Pernell at the Sept. 18 meeting.
Hospitality Tax
The hospitality tax is on “the gross proceeds of the sale of prepared meals and beverages in establishments within the town” and is the liability of the customer, states the ordinance.
Prepared meals and beverages are any food or drink prepared and sold in restaurants. The tax will be incorporated into the total cost when the customer is purchasing the food or drink.
Before Councilman Enterick Lee made a motion to approve the ordinance, he asked if local restaurant owners had been informed of this new tax. Mayor Pernell explained the town will “make sure they are properly notified,” and the first reading of the ordinance is their first notice.
There are five eateries in the Town of Blackville – Miller’s Bread Basket, Duke’s BBQ, Russell’s Pizza, The Scoop House, and Famously Made Wings & Potato, LLC. Many of the owners of these locations were not informed by councilmembers of these taxes being imposed prior to the first reading at the Sept. 18 meeting.
A hospitality tax was previously implemented in Wagener– the home of another location of Russell’s Pizza. According to owner Russell Hodges, staff of this location received push back from customers in Wagener over this two percent increase.
Other restaurant owners anticipate a similar reaction from their patrons in Blackville.
“If I have to start charging people another 2 percent, we’re going to lose some business. I guarantee it,” said Mervin Miller, owner of Miller’s Bread Basket, at the Sept. 18 meeting.
Owner of Duke’s BBQ Tony Judy said this tax “is going to hurt a lot.” Judy’s location is one of three– the other two restaurants in Aiken and Bamberg are owned by his brothers.
“I am about ready to close,” said Judy. “Between the cost of food going up in the last two years, I am barely making it now.”
Restaurant owners are not the only ones with an aversion to this tax being placed on customers.
“You, members of the council, are voting new taxes on the constituents of this town without our direct opportunity to vote without being taxed,” said resident Neil Khatod. “This is taxation without representation.”
Khatod suggested the council add these tax items as an addendum to the upcoming ballot. Although there is discontent around the town’s decision, they are legally allowed to implement taxes such as this through the process of approving an ordinance.
Regarding the accommodations tax, the S.C. Department of Revenue finds accommodations to include hotels, motels, inns, campgrounds, tourist camps/courts, condominiums, and residences.
According to state law, a governing body such as the Town of Blackville may impose an accommodations tax not to exceed three percent when adopted by a majority vote. These ordinances were both accepted by the majority of the council at the Sept. 18 meeting.
This section also details that all proceeds from a local accommodation tax must be kept in a separate fund and all generated interest must be credited to that fund.
These taxes will be remitted from the restaurant to the town on a monthly basis. Failure to comply can result in the vendor being fined no more than $500 or imprisoned for up to 30 days, or both.
The Town of Blackville is not unique in implementing these taxes. The City of Barnwell has a two percent tax for hospitality and accommodations as well.
In the City of Barnwell’s 2024 budget, the local accommodations tax is slated to bring in $26,100. The local hospitality tax is set for $576,200.
Many counties and municipalities throughout the state have welcomed hospitality and accommodation taxes to allow for increased revenue including the City of Greenville, Town of Bluffton, and unincorporated areas of Richland County.
This tax increase is in addition to the local sales tax of 8 percent.
