NORTH MYRTLE BEACH, SC (WBTW) -UPDATE: 8:19 p.m., North Myrtle Beach City Council passed a resolution calling for public referendum regarding the imposition of a Local Tourism Development Fee. The public referendum is set for March 6, 2018. All of the city’s registered voters may participate in the referendum, with a majority needed to pass.
ORIGINAL: North Myrtle Beach city leaders will vote Monday night to decide if people who live there should vote on whether or not the city will adopt what some consider a controversial tax.
It’s called a tourism development fee, or TDF fund. It’s a 1% sales tax on things you pay for when you go to a movie, shopping or to a restaurant.
The City of Myrtle Beach has had the tax for years, and it was a hot topic during this year’s mayoral debates. At least one mayoral candidate questioned how the City of Myrtle Beach Chamber of Commerce spent the money.
Now, North Myrtle Beach City Spokesperson Pat Dowling says they’re looking at the same tax.
“The last several years, the North Myrtle Beach Chamber of Commerce and other business leaders have approached city council individually and as a whole asking them to pass the TDF, or tourism development fee, by a super-majority vote,” said Dowling.
Council wasn’t willing to do that. After heated debate, Dowling says some council members want the voters to decide.
“Council is basically saying ‘look, we’re tired of the discussions, we’re tired of the intensity, the negative intensity of some of the discussions, and we’re going to put this up to the people and ask them to determine whether or not they want this tax’,” said Dowling.
If the tax is implemented, the North Myrtle Beach Chamber would get about $6,800,000 a year for advertising, and the city would get $1,700,000.
“We would take roughly 18% of our 20% and use it for property tax rollback, and the rest we would use for public parking. We have a serious need to upgrade our infrastructure in that respect, and it’s a very expensive proposition,” said Dowling.
The property tax rollback for someone in North Myrtle Beach would be about $51. That’s far less than Myrtle Beach, which is about $614 per home under the same plan.
Dowling says that’s also why council hasn’t been on board. He says instead, they’d rather move forward with a plan council has been working on – to use a 1% sales tax increase for capital improvement projects.
“We need to update our infrastructure. Parking, water and sewer, ocean outfalls, things like that. Sort of set the table before we invite in more guests,” said Dowling.
If council puts this up for a referendum Monday, that vote would happen on March 6th.