Here are some frequently asked questions regarding the 2% local hospitality tax collected in Bluffton, Hilton Head Island and in unincorporated Beaufort County to have a better understanding of how tourism in the Lowcountry is funded. Q: How is the 2% local hospitality tax generated? A: It is generated through the tax on prepared food and beverages in Beaufort County and surrounding municipalities. Q: Where does this money go? A: This revenue is separated from the general fund for each local government. It is set aside to fund items such as infrastructure improvements (street maintenance and projects geared toward public safety), tourism marketing and "tourism related expenditures". Q. What are some examples of "tourism related expenditures"? A. Some examples include the promotion of arts related events and the completion of new facilities for local and community events. Source: State of South Carolina Legislature online
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