Myrtle Beach city leaders discussed a plan to create greater transparency for how the Myrtle Beach Area Chamber of Commerce spends accommodations tax dollars.
At the city council meeting on Tuesday, council members and the city’s chief financial officer reviewed a new agreement that would add to the state law’s requirements for how the Chamber spends A-tax money and reports its spending.
One new requirement would be fore the Chamber to keep the city’s A-tax money, instead of commingling it with other public or private funding. The Chamber of Commerce would also be required to spend that money for marketing or to promote events solely inside the city.
In April, Karon Mitchell filed a lawsuit against the chamber claiming it gave millions of tax dollars to businesses started by current and former employees. On Tuesday, city councilwoman Jackie Vereen wanted to add more revisions to the agreement to ensure small businesses benefit from the chamber’s use of that money.
“Not only that the accommodations tax money be used to promote events located inside the city, conducting the advertising, and the promotion campaign in a way that highlights small businesses, and benefits small businesses,” said the city’s Chief Financial Officer Michael Shelton.
The state Supreme Court recently ruled the chamber is not subject to the Freedom of Information Act, and therefore not required to report how it spends tax dollars. The Chamber does disclose its spending on its website, and submits quarterly reports to the city. However, the city and the chamber are now discussing having a chamber member present that information to council in person.
“I think they both want to see that things are reported and accounted for properly and that there’s no reason for anyone to suspect that it’s anything other than being properly done,” said Shelton.
Myrtle Beach City Council continued the motion, so they will discuss the agreement further at the next council meeting.