Post Tagged with: "hospitality tax"

County Council Votes Hospitality Tax Funds for Public Safety and I-73

July 27, 2018 4:10 AM
County Council Votes Hospitality Tax Funds for Public Safety and I-73

Last Tuesday’s special meeting of Horry County Council provided some interesting insights into ongoing deliberations about the future use of hospitality tax revenue.

Technically called a hospitality fee by Horry County Government, the two and one-half percent tax is collected on all tourist accommodations, prepared foods and attraction tickets sold throughout the county. The revenue is split with one cent per dollar going to the jurisdiction (municipality or unincorporated county) in which it is collected.

The remaining one and one-half cent per dollar goes to the county to pay off Ride I bonds. Those bonds are expected to be paid off in the first half of calendar year 2019.

A sunset provision was placed on the one and one-half cent per dollar tax, when legislation implementing the tax in Horry County was passed, providing that portion of the tax would end when the bonds were paid off.

County council voted in Spring 2017 to remove the sunset provision and extend the tax indefinitely. The one and one-half cent per dollar tax is expected to generate $41 million revenue in calendar year 2019.

When the sunset provision was removed by a three reading ordinance of county council last spring, council chairman Mark Lazarus stated he would like to use the revenue to fund construction of Interstate 73. The projected revenue would have allowed the county to bond approximately $500 million for a 20-year period to help fund the I-73 project. It is expected completion of the I-73 portion from I-95 near Dillon to U.S. 17 in Myrtle Beach will cost approximately $1.2 billion.

This spring, Johnny Gardner challenged Lazarus for the Republican nomination for council chairman on the November 2018 general election ballot. During the primary campaign, Gardner focused on the public safety and infrastructure needs of the county, proposing using a portion of hospitality tax revenue to help meet those needs. Gardner won the nomination in June 2018 primary voting.

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Horry County’s Election Year Budget

April 2, 2018 5:09 AM
Horry County’s Election Year Budget

Horry County Council’s recent budget workshop provided an interesting view into budget making in an election year.

County employees will receive what is being called a “three percent across the board merit raise.” In a countywide election, the county’s employees can account for thousands of votes including their families and friends.

In addition, ways to fund additional raises for public safety personnel are being considered. Horry County Council Chairman Mark Lazarus has proposed an additional $1 per hour raise for all Level 1, 2 and 3 police officers, Sheriff’s deputies and detention officers, which, if approved, will bring their respective raise amount to nearly 10 percent across the board.

Lazarus also proposed an additional three percent across the board raise (six percent total) for firefighters and EMS personnel.

The proposed public safety raise percentages were billed as necessary for “retention” of personnel, but it is interesting this consideration only seems to come up every four years or so when the council chairman is up for re-election.

Even more interesting is the fact that this increase in the public safety budget will not add any additional personnel despite the growing population of the county, which causes an increased demand for services.

Council member Harold Worley proposed using some of the excess hospitality tax revenue that the county will begin experiencing next year, currently estimated at $40 million per year, for increasing the number of police and fire personnel. County council already passed an ordinance stipulating continued collection of full Hospitality Tax after Ride I bonds are paid off.

Lazarus, who wants to use that money for I-73 construction, was heard to utter “not going to happen” at Worley’s suggestion.

One only has to consider the nearly $12 million of excess Ride II tax collections that recently was used to purchase approximately 3,729 acres of swamp land under the guise of establishing a wetlands mitigation bank in the county. That purchase literally came out of nowhere with little explanation to full council before it was approved.

If council is unwilling to return those excess tax revenues to the citizens who paid them, it certainly seems those excesses would be better spent on items that benefit the largest number of citizens rather than on the wishes of a few at the top of county government. The voices of average citizens need to be heard.

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Impact Fees Wrong Solution for Horry County Council

December 3, 2017 5:27 AM
Impact Fees Wrong Solution for Horry County Council

An old issue has again surfaced as Horry County Council is reportedly looking at ways to change the state impact fee law to help pay for the costs of development.

Twelve to twenty or so years ago this was a recurring issue council routinely discussed until it became apparent nothing would change in Columbia.

That discussion was interrupted by the collapse of the mortgage market and resulting depression which began in 2008 and which, now, the housing market appears to be finally recovering from.

The current impact fee law was effectively written to ensure impact fees would not be levied in Horry County. A primary sponsor on that piece of legislation was Horry County’s own Sen. Luke Rankin.

The builders, real estate agents and their attorneys do not want impact fees in Horry County and their lobby in Columbia has been strong enough, to date, to stop them.

New construction creates increased costs to provide local government infrastructure and services. Impact fees theoretically have those costs initially paid for by the new residents. Without impact fees, those costs are spread among all residents throughout the county.

Further limiting the ability of local government to meet the costs of providing new, as well as maintaining existing, infrastructure and services is the infamous Act 388 of 2006, which was vigorously supported by our county legislative delegation.

Much of the blame for any shortage of police officers, fire and emergency services, roads and other infrastructure lies directly at the feet of those we have been sending to Columbia over the years.

However, by looking to effect changes in the impact fee law, Horry County Council is also being shortsighted.

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Horry County – Myrtle Beach Land Deal

October 13, 2015 8:06 AM
Horry County – Myrtle Beach Land Deal

Horry County and the City of Myrtle Beach are investigating a joint purchase of the former Hard Rock Theme Park.

According to sources familiar with the talks, the reason for the purchase is to build additional sports fields for the sports tourism industry.

This is not a good idea on several levels.

Horry County and Myrtle Beach should not use public tax dollars for the purchase of land and construction of sports facilities for the tourism industry.

Horry County just raised property taxes by 7.2 mils (the maximum increase allowed by state law) for this current fiscal year ostensibly for pay increases and public safety improvements.

Now it not only proposes to use tax dollars to purchase land and build sports fields, but the purchase of the former theme park property by local governments would remove that land from the tax rolls, a double whammy for local taxpayers.

Horry County already wastes over $1 million per year funding the operations budget of the Myrtle Beach Regional Economic Development Corporation. If this is such a good idea, shouldn’t MBREDC be able to recruit private business to purchase the land and build the facilities?

Myrtle Beach raises tens of millions of tax dollars, with its one cent tourism sales tax, that it turns over to the Myrtle Beach Area Chamber of Commerce to use for tourism advertising. This is something that should be funded by marketing budgets of the private businesses in the tourism industry.

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Council Chairman Mark Lazarus Correct on I-73

November 14, 2014 4:00 AM
Council Chairman Mark Lazarus Correct on I-73

Horry County Council Chairman Mark Lazarus was absolutely correct recently when he said the proposed I-73 should not be included with RIDE III projects.

Lazarus was responding to comments made by local state Rep. Alan Clemmons (R-107) who is trying to keep I-73 in the discussion about what road projects will be paid for with local sales tax.

Clemmons continues to push the myth that I-73 will be a huge job creator for the local area, a myth based on a “faulty” study commissioned by the Northeast Strategic Alliance (NESA) several years ago. The myth was debunked by several other independent studies.

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