NORTH MYRTLE BEACH, SC (WBTW) – Two Horry County cities are close to ending a practice of sending local tourist taxes to the county government, but they say it’s not being done to oppose construction of Interstate 73.
Myrtle Beach and North Myrtle Beach are looking to keep their accommodations and hospitality taxes in their cities. While supporters of I-73 say this means the cities oppose the project, spokespeople from both cities say that’s not the case.
If you go to North Myrtle, you’ll pay a three percent accommodations tax and a two percent hospitality tax. Half of that money goes to Horry County.
City spokesperson Pat Dowling says North Myrtle hasn’t seen much help from the county.
“Our residents, tourists, infrastructure and services do not benefit to any degree from that,” said Dowling.
City council approved first reading of an ordinance Thursday that would keep all that tourism tax revenue in North Myrtle.
The city says it wants to control the money, using it on projects like road repairs and beach parking.
“Nobody here gets to vote how $6 million a year that are taken from North Myrtle Beach are decided upon by county council,” Dowling said.
Myrtle Beach City Council approved first reading of similar rules Tuesday. Both cities’ ordinances must pass a second reading before they’re finalized.
Supporters of the I-73 project have said cities not sharing tourism taxes could jeopardize funding for the highway.
Dowling says North Myrtle’s city council could still decide to support it.
“That has to be their choice,” he said. “The money is generated in North Myrtle Beach and North Myrtle Beach council should make those decisions.”
Dowling also says state law sides with cities on what they do with their tax revenue.
“It’s not about I-73,” Dowling said. “They want to make it about I-73 because the law is clear that local government has the right to charge these taxes to a certain maximum and use them internally.”
A Myrtle Beach spokesperson says that city council hasn’t made a decision on I-73 either. Under the proposed new ordinances, Myrtle Beach admissions taxes would be lowered by 1.5 percent, while food and beverage taxes would go down by 0.5 percent.
An Horry County spokesperson says the county “is naturally concerned about the pending Myrtle Beach and North Myrtle Beach ordinances.” The spokesperson added that the county “is in the process of addressing the matter.”
Horry County Council is also expected to discuss the tourism tax issue. An agenda for the next meeting says council is scheduled for an executive session “relating to recent actions taken by municipalities to impose local accommodations and hospitality taxes.”
That county council meeting will be at 6 p.m. Tuesday.
