Post Tagged with: "tourism development fee"

North Myrtle Beach and Tourism

February 14, 2018 4:15 AM
North Myrtle Beach and Tourism

The beaches and the upcoming Tourism Development Fee referendum in North Myrtle Beach have hit the pages of local media recently.

The beaches must be protected from the potential dangers of offshore drilling and they must be routinely renourished in order to keep tourism viable in the city, according to recent articles.

Many arguments against the TDF were enumerated in a recent op-ed by a North Myrtle Beach resident. Unfortunately, the writer was arguing against the example of how Myrtle Beach has chosen to implement the TDF rather than how it can be positively applied in North Myrtle Beach.

There is no question that tourism is the lifeblood of all the coastal communities along the Grand Strand. In many ways, North Myrtle Beach has set an example that the others should strive to follow.

The business community has done a good job of advertising with its own dollars, promoting the North Myrtle Beach brand as a safe, clean, family friendly location.

The city has added to this effort by providing quality public safety services, stormwater outfalls to keep bacteria levels near the beaches low and other infrastructure that benefits both local citizens and tourists alike.

Properly used, the TDF, if approved, could be used to supplement these private and public efforts to keep the city competitive in the family friendly tourism market.

According to state law, from the second year onward, the TDF revenues can be split 80% for out of area tourism marketing and 20% to the city for property tax relief and/or tourism related public safety, infrastructure and other similar projects. The decision on the split and how the city portion is spent rests solely with the city council.

It was proposed in the above mentioned op-ed that it would be nice to be able to apply all of the revenue from the one percent fee totally to public safety, infrastructure and the like.

In fact, this was attempted by a bill submitted by Sen. Greg Hembree last year (S.426). Called the Municipal Tax Relief Act, this bill proposed a one-cent sales tax on all taxable purchases in the city that would go to city coffers to offset some of the demands on property tax revenues.

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Tourism Development Fee – A Tale of Two Cities

February 9, 2018 4:28 AM
Tourism Development Fee – A Tale of Two Cities

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity,…”

Charles Dickens, A Tale of Two Cities

 The above quote from the classic Charles Dickens novel “A Tale of Two Cities” accurately sums up the respective approaches being taken by the cities of North Myrtle Beach and Myrtle Beach on the issue of the tourism development fee (TDF).

The North Myrtle Beach city council has scheduled a referendum vote for March 6, 2018, to allow voters in the city to determine whether a TDF should be allowed on purchases in the city.

The Myrtle Beach city council approved the TDF nearly nine years ago by supermajority vote of the council. The council, even with three new members, appears ready to vote to extend the TDF beyond its initial 10 year approval period again by supermajority vote of council members. Council seems unwilling to allow the question to be put before its voters.

Having voted for a referendum, North Myrtle Beach officials, both elected and appointed, cannot be seen as advocating for passage or defeat of the referendum in their official capacity. According to statements made to various media outlets, they are strictly adhering to this line to avoid any potential ethics problems.

North Myrtle Beach city officials can and should tell the public how the revenue the city will receive from the TDF will be spent, i.e. public safety, parking, other infrastructure. It appears that all residents will get some benefit from TDF revenue. In Myrtle Beach, only 17% of properties in the city (owner-occupied properties) receive all the benefits from the city revenue.

One has to wonder whether Myrtle Beach city officials would conduct themselves in the same ethical manner if a referendum on the question were pending in that city. Incumbents have been strong proponents of the TDF and even several of the new members, who said they thought a referendum should be held on the question of extending the TDF, seem to have backed away from those campaign pronouncements.

I know of several instances where local media outlets have been contacted with a request to “take it easy” on Myrtle Beach city council members if they vote to extend the TDF.

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Public Monies, Chambers of Commerce and South Carolina Supreme Court

February 5, 2018 8:03 AM
Public Monies, Chambers of Commerce and South Carolina Supreme Court

It has been nearly four months since the South Carolina Supreme Court heard arguments in the DomainsNewMedia.com v Hilton Head – Bluffton Chamber of Commerce.

The question before the court deals with whether the Chamber of Commerce is a public body and subject to the provisions of the S. C. Freedom of Information Act.

The Myrtle Beach Area Chamber of Commerce (MBACC) filed an amicus curiae brief to the S. C. Supreme Court supporting the Hilton Head – Bluffton Chamber of Commerce position.

A Circuit Court judge in Bluffton County ruled in favor of Plaintiff DomainsNewMedia.com finding the Chamber is a public body within the definition of the law.

Actually, the law is quite straightforward. Section 30-4-20 of the S. C. Code of Laws defines a public body subject to the Freedom of Information Act as, “…any organization, corporation, or agency supported in whole or in part by public funds or expending public funds…”

The Hilton Head – Bluffton Chamber of Commerce receives accommodations tax money from the towns of Hilton Head and Bluffton as well as Beaufort County. The Chamber is the designated marketing organization for these governmental entities to expend the tax funds collected for tourism promotion.

The Chamber claimed before the Court that being the designated marketing organization for those public agencies did not negate its status as a private non-profit corporation not subject to FOIA.

The Chamber does provide a marketing budget and quarterly and year end reports for the public money to the governments involved.

In answer to a question from Justice Few about how a member of the public could find out specific information about the line items in the Chamber’s budget, the attorney for the Chamber suggested they would have to file a FOIA request with the town, who would then go to the Chamber for the specific information.

The argument was not that the public did not have a right to the information, it just didn’t have the right to request the information directly from the agency expending the funds, which is ridiculous.

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NMB Takes Proper Approach to Tourism Development Fee

February 1, 2018 4:39 AM
NMB Takes Proper Approach to Tourism Development Fee

North Myrtle Beach is to be commended on taking what many consider the proper approach to deciding whether to institute a tourism development fee (TDF) in the city.

City Council decided it was appropriate for the residents of North Myrtle Beach to decide whether a TDF is to be collected. Therefore, a referendum on whether to approve the TDF is scheduled for March 6, 2018 in a stand-alone vote.

The role of the city ends with the decision to hold a referendum. No government body, personnel or equipment may be involved in the campaign, according to state law. Individuals who are government personnel may only support or oppose the referendum question on their own time outside of government facilities and not as part of their official duties.

State Law Sec. 8-13-765 states in part, “No person may use government personnel, equipment, materials, or an office building in an election campaign,” and “This section does not prohibit government personnel, where not otherwise prohibited, from participating in election campaigns on their own time and on nongovernment premises.”

If approved, the TDF is a one percent fee charged on all purchases in the city to which state sales tax applies. Items such as food, rent/mortgage and medicines are exempted.

If approved, 80% of the revenue collected from the fee will be given to a marketing organization, usually the local Chamber of Commerce, to promote tourism from out-of-area locations. The remaining 20% goes to the city for things such as owner-occupied property tax rebates, public safety, parking and other infrastructure or similar types of city expenses.

From statements made recently to media, it appears the city will use the state mandated minimum (4% of the total revenue) to apply to property tax rebates to owner-occupied properties. The remaining 16% of revenues will be used for other city initiatives.

This approach is the best because it shares the benefits of the fee to the largest number of citizens, rather than keeping it for just a small percentage of the population.

A significant portion of the revenue will come directly from tourists and the city’s portion of the revenue can offset some of the costs to the local economy from the tourism industry.

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Incumbents Want Status Quo in Myrtle Beach

October 28, 2017 4:26 AM
Incumbents Want Status Quo in Myrtle Beach

What I took away from the debate on Thursday night between three of the candidates for mayor and the debate among nine candidates for city council a week earlier is a vote for the incumbents in the upcoming Myrtle Beach city elections is a vote for the status quo in the city.

If the incumbents are re-elected, nothing will change including the secrecy and disinformation that surrounds so much of what passes for planning in the city.

Listening to Mayor John Rhodes during the debate and over several days prior to it, the city had its best year ever this year, everything is great in the city and the shootings on Ocean Boulevard this year were “fake news.”

As we know from the mindless tweets of President Donald Trump, fake news is a term used to attempt to discredit any news a politician doesn’t want to hear.

Rhodes definitely doesn’t want to hear news of crime and safety concerns in Myrtle Beach. Rather than attempt to solve those, his attitude seems to be blame the messenger.

One thing that definitely will not change is the Tourism Development Fee charged on virtually every sale in the city. Rhodes voiced strong support of the TDF, taking credit for creating the idea.

What Rhodes did not divulge is how those who benefit from the TDF work to keep the incumbents in place.

The Tourism Development Fee is a one percent tax (one cent on every dollar spent) on basically everything that is purchased in Myrtle Beach. It is paid by everybody who buys anything in the city.

The tourism industry essentially gets its advertising costs paid for it from these tax dollars.

This is roughly the same as if the federal government charged a one percent sales tax on every item purchased in the United States to pay for the advertising of Ford, General Motors, Microsoft and General Electric.

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Myrtle Beach City Council Hears Frustrations and Possible Solutions to Recent Violence

June 21, 2017 8:55 AM
Myrtle Beach City Council Hears Frustrations and Possible Solutions to Recent Violence

Myrtle Beach City Council hosted a raucous special meeting Tuesday with home and business owners voicing their outrage at recent shooting incidents on Ocean Boulevard and in other parts of the city.

It was a good move by city council, allowing the meeting to act as a pressure valve relieving some of the pent up frustration felt by citizens by having it voiced directly to council and city staff in a public forum.

That frustration ran from blaming city officials for ignoring the city’s problems and threatening defeat of the four incumbent council members up for reelection in November to calling for martial law to be declared in the city.

Many of the comments were rough and pointed, one citizen even asking John Rhodes if he would immediately resign as mayor. However, council took the criticism stoically because solutions are more important at this point than verbal jousting contests.

While many of the comments fell short of suggesting solutions for the violence problems in the city, several were on point.

Several citizens suggested using money from the one cent local option ‘tourism development fee’ (ad tax) to fund more police officers.

Former Mayor Mark McBride was most forceful in this line of thinking noting that the city’s police force had not expanded since he left office at the end of 2005.

To be fair, the city has installed over 800 cameras that are constantly monitored to help with public safety response and were very helpful during this past weekend’s incidents.

McBride called for 50 percent, approximately $10 million, to be redirected from the Myrtle Beach Area Chamber of Commerce’s out of area advertising to funding additional police officers as well as providing raises for current officers.

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Talking Politics on the Grand Strand

June 2, 2017 6:19 AM
Talking Politics on the Grand Strand

Talking Politics, a new political talk show, was introduced on the Grand Strand this week.

Co-hosted by Paul Gable and John Bonsignor and produced by CarolinaPolitics.org, the show will travel to locations around the Grand Strand to speak with political leaders and others involved in the most important and high profile issues of the day.

Click on the arrow below to view a discussion with Myrtle Beach City Council member Randal Wallace about issues such as eminent domain use by the city, the current discussions between city government and the oceanfront merchants and the Tourism Development Fee, otherwise known as the one-cent local option sales tax for tourism marketing.

Click on read full story to view the video.

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Budget Time for Local Governments

March 21, 2017 1:02 PM
Budget Time for Local Governments

This week will see several local governments, particularly Myrtle Beach and Horry County, in budget workshops as next year’s revenue and spending is considered.

If you have never seen the local budget process in action, you should consider at least watching some of the workshop meetings on local cable television or live streaming on the internet.

After all, it’s your money they are spending and services for you they are supposed to be providing.

Much of the discussion will be on the agencies’ respective general funds. Those are the funds that pay for public safety, public works, administration and so forth.

For each agency, approximately 65% of general fund expenditures are for personnel pay and benefits.

However, the respective general funds are not the only budget areas that affect local citizens.

The Horry County Solid Waste Authority, which is a component unit of Horry County Government, is asking for a $7 per ton increase on the cost of dumping municipal solid waste (household garbage) at the Highway 90 landfill.

If county council approves a rise in the SWA MSW tipping fee, every household and business in the county will be paying more for garbage disposal.

The City of Myrtle Beach parking fees, which go to the Downtown Redevelopment Corporation and are currently helping fund the taking of businesses through the use of eminent domain, are a problem for all county residents.

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Hypocritical Attack Ads Target Reese Boyd

June 12, 2016 6:30 PM
Hypocritical Attack Ads Target Reese Boyd

Reese Boyd is making a strong run for the open SC Senate District 34, enough that the Stephen Goldfinch campaign and its cohorts are resorting to absolute hypocrisy in these final days of the campaign.

Reese Boyd and Stephen Goldfinch are both seeking the Republican nomination for SC Senate District 34 in Tuesday’s Republican Primary voting.

If you are following politics at all in this primary season, you have seen, either in your mailbox or on Facebook, Reese Boyd being called a fiscal liberal.

These attacks are coming in mail and on broadcast media from something called the Citizens Alliance for Fiscal Responsibility, which, from everything I can determine, is run by Tom Swatzel of Swatzel Strategies LLC.

Swatzel Strategies has also received payment from the Stephen Goldfinch campaign for campaign consulting. There is an obvious direct tie between the PAC and the Goldfinch campaign.

If Citizens Alliance for Fiscal Responsibility is acting as an independent PAC, even under the Citizens United decision it must have no direct coordination with the campaign.

Why is Boyd being attacked as a fiscal liberal? Because Boyd has refused to sign Grover Norquist’s Taxpayer Protection Pledge.

I support Boyd in not signing Norquist’s bogus pledge, which has never been anything more than a gimmick for elected legislators to claim they are fiscal conservatives.

But, the hypocrisy currently being practiced by the Goldfinch campaign is much worse than just mislabeling Boyd because he wouldn’t agree to forfeit his decision making power if he is elected to the senate.

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Tourism Development Fee Tales

February 9, 2013 12:00 PM
Tourism Development Fee Tales

The Tourism Development Fee, otherwise known as the reverse Robin Hood tourism ad sales tax, is again in the news as Myrtle Beach city and Myrtle Beach Area Chamber of Commerce officials continue to attempt to justify it.

They speak of capital improvement projects and reduced property tax for owner occupied homes in the city as well as possibilities of extending the tourism base for local business.

What we don’t hear about is how the motel and restaurant owners were able to decrease their advertising budgets in excess of 90 percent, allowing them to put more money in their pockets, while the maids, waitresses and bus boys they pay minimum wage to pay more tax.

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