Hilton Head, SC, October 13, 2025
News Summary
Hilton Head, Port Royal, and 14 other South Carolina communities are set to receive a combined total of $60 million from Airbnb. This settlement stems from a lawsuit regarding unpaid tourism taxes and local business fees. Affected communities will utilize these funds to boost local tourism initiatives, but the rise of short-term rentals has raised concerns about housing shortages. Going forward, Airbnb will be mandated to adhere to local tax regulations.
Port Royal, South Carolina – The towns of Hilton Head and Port Royal, alongside 14 other South Carolina communities, are set to receive a total of $60 million as part of a settlement agreement with Airbnb due to unpaid tourism taxes. The settlement results from a lawsuit filed against the online lodging platform, which was initiated in April 2021, that alleged Airbnb failed to collect local accommodations taxes and business license fees.
Attorney David Barnes confirmed the settlement during a recent visit to Port Royal on February 12, 2023. The lawsuit addressed the discrepancies in Airbnb’s tax obligations and claimed that the company misled both hosts and guests regarding tax collection and remittance. The affected communities include major tourism destinations like Columbia, Charleston, Myrtle Beach, North Myrtle Beach, Mount Pleasant, Edisto Island, Folly Beach, Greenville, and Surfside Beach, with settlement amounts varying based on short-term rental revenues generated within each jurisdiction.
Among the settlements, North Myrtle Beach reported it will receive $2 million; Mount Pleasant’s share is $497,000; and Port Royal will receive $146,873. Each community’s final settlement amount will be confirmed once all jurisdictions approve the agreement, which is expected shortly, aside from North Charleston, which is anticipated to act later.
Notably, while the city of Beaufort and the town of Bluffton are not part of the lawsuit, they will benefit indirectly through Beaufort County. For the communities involved, this settlement represents 92% of what they estimated they were owed from Airbnb’s operations. After the agreement is fully approved, allocations will be distributed within 30 days.
The funds from these settlements are intended to support local tourism initiatives, such as festivals and community events that are crucial for sustaining local economies. The rise in short-term rentals, however, has brought challenges, including housing shortages and increasing living costs in many affected areas. Port Royal and Hilton Head have taken proactive measures by passing ordinances to cap the number of short-term rentals allowed in their jurisdictions.
Moving forward, the settlement agreement obligates Airbnb to collect and remit accommodation taxes and business license fees, ensuring compliance with local tax laws. The agreement also includes provisions for an audit if future discrepancies arise concerning Airbnb’s tax obligations.
Background on the Airbnb Lawsuit
The lawsuit was fueled by increasing concerns over the impact of short-term rentals on local housing markets, particularly in tourist-centric areas. Communities argued that Airbnb’s non-compliance significantly affected their ability to fund public services and maintain local infrastructure. This settlement marks a substantial step in holding Airbnb accountable for its tax responsibilities and will likely influence similar cases nationwide.
Settlement Breakdown
| Community | Settlement Amount |
|---|---|
| North Myrtle Beach | $2 million |
| Mount Pleasant | $497,000 |
| Port Royal | $146,873 |
| Other Communities | Varied |
FAQ
What is the total amount of the Airbnb settlement in South Carolina?
The total settlement amount is $60 million.
Which communities are involved in the Airbnb settlement?
The involved towns include Hilton Head, Port Royal, Columbia, Charleston, Myrtle Beach, North Myrtle Beach, Mount Pleasant, Edisto Island, Folly Beach, Greenville, Surfside Beach, and others.
How will the funds from the settlement be used?
The funds from the settlements are used to support local tourism initiatives, including festivals and community events.
When will the settlements be distributed?
Allocations will be distributed within 30 days after the settlement is approved by all communities.
What does the settlement mandate Airbnb to do in the future?
The settlement mandates that Airbnb collect and remit accommodation taxes and business license fees going forward.
Deeper Dive: News & Info About This Topic
HERE Resources
Hilton Head: A Cost Comparison of Hotels and Short-Term Rentals
Discover the Best Beach Cities in South Carolina
Beaufort Lowcountry Community Gathers for Upcoming Events
South Carolina’s Tourism Sector Sees Significant Growth
Hilton Head and Port Royal Secure $60 Million Airbnb Settlement
Additional Resources
- AOL: Hilton Head and Port Royal Settlement News
- Wikipedia: Airbnb
- Post and Courier: Charleston Airbnb Settlements
- Google Search: Airbnb Settlement South Carolina
- WBTW News: North Myrtle Beach Settlement
- Google Scholar: Airbnb Tax Lawsuit
- Island Packet: Hilton Head Settlement Report
- Encyclopedia Britannica: Airbnb Settlements
Author: STAFF HERE HILTON HEAD
The HILTON HEAD STAFF WRITER represents the experienced team at HEREHiltonHead.com, your go-to source for actionable local news and information in Hilton Head Island, Beaufort County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the RBC Heritage golf tournament, Hilton Head Island Wine & Food Festival, and the Gullah Celebration. Our coverage extends to key organizations like the Hilton Head Island-Bluffton Chamber of Commerce and Community Foundation of the Lowcountry, plus leading businesses in tourism and hospitality that power the local economy such as Sea Pines Resort and Sonesta Resort Hilton Head Island. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
