FOR IMMEDIATE RELEASE

March 4, 1998

SALES TAX ON EXCHANGES OF ACCOMMODATIONS DELAYED UNTIL 1999

South Carolina vacationers using accommodations provided under a rental property exchange agreement now have until Jan. 1, 1999, before they must start paying state sales tax on those accommodations.

Rental property owners and exchange companies were to begin collecting the 7% accommodations tax April 1, 1998, but officials at the South Carolina Department of Revenue decided this week to delay the date to allow the state's tourism industry sufficient time to implement the tax collection process. The tax is due on exchanges of accommodations arranged and furnished on or after Jan. 1, 1999.

People belonging to membership accommodation plans or timeshare plans frequently enter into exchange agreements, where they trade their accommodations with other program participants. These arrangements allow participants to vacation in almost any part of the world as part of their own plan.

The Department of Revenue last year determined the value of these exchanges is subject to the accommodations tax. The tax applies to resort homes, condominiums and timeshare units where owners or agents enter into exchange agreements.

The DOR this week will begin mailing information to taxpayers affected by the change. Information also can be obtained from the DOR Internet home page at http://www.sctax.org, or by calling (803) 898-5419.