Post Tagged with: "local funding"

State Legislation Would Not Solve Lawsuit or I-73 Funding

January 20, 2020 3:55 AM
State Legislation Would Not Solve Lawsuit or I-73 Funding

A bill being sponsored by four local state representatives is erroneously being promoted as legislation that would settle a lawsuit between Myrtle Beach and Horry County and provide funding for Interstate 73.

Nowhere in the original complaint or subsequent motions of that lawsuit, filed March 2019, is Interstate 73 mentioned.

The legislation, H4745, sponsored by Reps. Alan Clemmons, Russell Fry, Heather Ammons Crawford and Tim McGinnis would provide the extension of what is called a countywide ‘legacy hospitality fee’ as long the revenue derived from the countywide portion is used specifically to fund an interstate highway project.

When Myrtle Beach filed the original complaint last March, it specifically sought end collection of a 1.5% countywide hospitality fee within its corporate limits. Immediately after filing the lawsuit, Myrtle Beach city council passed new accommodations and hospitality fee taxes, allowed by current state law, to capture revenue from those levies for use on projects of council’s discretion within the city limits.

North Myrtle Beach and Surfside Beach quickly followed Myrtle Beach’s lead in passing new accommodations and hospitality taxes within their respective jurisdictions.

The day Myrtle Beach filed its lawsuit seeking to stop collection of the countywide hospitality fee, countywide funding for I-73 was dead.

A section of the original complaint filed by Myrtle Beach claims the 1.5% countywide hospitality fee, established by a 1996 county ordinance, was illegally extended by county council when a sunset provision was removed from the ordinance in April 2017.

County council voted to remove the sunset provision at the urging of then county chairman Mark Lazarus. It was Lazarus who introduced I-73 into the discussion by mentioning the I-73 project as one of the possible future uses of hospitality fee revenue.

A current proposed settlement for the lawsuit ends any authority of the county to continue countywide collection of the 1.5% hospitality fee and allows all the cities within the county to collect and use the revenue from their newly passed hospitality and accommodations taxes as their respective councils determine within their respective jurisdictions.

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