COLUMBIA, SC (WBTW) – The South Carolina Department of Transportation is concerned about the future of the Interstate 73 project because of the hospitality tax legal battle in Horry County.

SCDOT applied for the INFRA grant from the U.S Department of Transportation this spring. If approved, it could give $348 million to I-73 construction, but SCDOT is worried about its chances at that money if the hospitality tax feud continues.

State transportation secretary Christy Hall says SCDOT may have to pull the application if the federal government starts awarding INFRA grants before October. Horry County Council voted unanimously last week to postpone its funding agreement with SCDOT from June 30 to October 1. SCDOT confirmed the agreement date has been revised.

The county signed that contract last year, pledging to give up to $25 million per year to I-73 from hospitality tax revenue. That’s in jeopardy because cities and towns are suing the county over control of the tourist taxes.

SCDOT has advised Horry County staff that we do have concerns about the status of the agreement and the delays in resolving the issue one way or another. Although we have signed the amendment revising the date as requested by Horry County, we have also expressed our concern that by delaying action until October, there is the risk that SCDOT may be forced to rescind the grant application if USDOT moves forward with grant awards prior to October.

Statement by South Carolina transportation secretary Christy Hall

SCDOT also says I-73 is the only project it applied for in the INFRA program this spring.

Rep. Tom Rice, a Republican who represents all of the counties on the proposed I-73 route in South Carolina, has supported the highway. He has said it would boost the economy and create a better hurricane evacuation route.

In a statement Monday, he expressed his concern over the tourist tax dispute, saying that local governments need to reach a compromise.

The Seventh District has been overlooked in terms of infrastructure investment for too long and we need I-73 to remain competitive and diversify our economy. South Carolina leaders are continuing our diligent efforts to secure federal funding for I-73. Just last week, Governor (Henry) McMaster, Senator (Lindsey) Graham and Senator (Tim) Scott and I spoke to Secretary (Elaine) Chao to advocate for the INFRA Grant. Local entities must come to an agreement to help move this project forward.

Statement from Rep. Tom Rice (R-SC)

The City of Myrtle Beach announced a new tourist tax plan Monday, which will take effect on July 1. No money will go to the county under that plan. This comes a few days after a judge denied a temporary injunction that would have forced municipalities to give hospitality tax funds to the county during the lawsuit.

Despite Friday’s injunction denial, the lawsuit is not over.