Tag: tourism development fee

County Council to Vote on Accommodations Tax Tourism Promotion Appropriation Tonight

Horry County Council will consider extending its contract with the Myrtle Beach Area Chamber of Commerce for distribution of the 30% accommodations tax collections state law mandates must go for tourism promotion.
The extension will be for one final year. Next year a new contract must be negotiated by the county and it is hoped other direct marketing organizations will step forward to compete with the Chamber for this contract.
When the accommodations tax enabling legislation was passed by the General Assembly over 20 years ago, the provision mandating 30% of the revenue collected must be spent for tourism promotion was included specifically at the request of the Myrtle Beach Chamber of Commerce and its CEO at the time Ashby Ward.
The Chamber was a struggling organization at the time with membership dues providing most of its operating revenue and a modest little white building on Kings Highway serving as its headquarters.
Accommodations tax money provided the Chamber with its first taste of a steady stream of public tax dollars into its coffers. Over the first decade of this century, ‘greed is good’ apparently became the unofficial motto with grants from the General Assembly added to those coffers and, beginning in 2009, the institution of the tourism development fee.

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Myrtle Beach Cabal v. McBride in District 107 Primary Voting Today

Voters in House District 107 will again go to the polls today to determine who will be the new Republican nominee for the South Carolina House of Representatives seat from that district.

The special primary was made necessary when former representative Alan Clemmons resigned from his House seat five weeks after being nominated for his tenth term in office.

Clemmons had been looking for another government job for the past two years with no luck so he took the default position of raising campaign donations and running for nomination for his tenth term. It has been obvious that he would bolt from that seat when prospects of a much higher paying job was potentially in the offing. When he learned the Master in Equities judge position would be available next July, he resigned from the House to secure the one year lapse, required by state law, from service in the General Assembly to appointment to a judgeship.

There is one way Clemmons can prove me wrong with my above conclusion. I challenge Clemmons  to come out publicly with a statement that his affidavit to the S. C. Election Commission was truthful about resigning his seat in the House and his nomination to another term for non-political reasons, as stated in the affidavit, and that under no circumstances will he seek nor accept the position of Horry County Master in Equity, which would be a political appointment.

As soon as he decided to resign, Clemmons, in his own words, called his opponent in the June regular primary, Case Brittain, to notify Brittain of his decision and start the process that would make Brittain the choice of the Myrtle Beach cabal in the special primary.

Brittain was reportedly advised by Clemmons and Mark Lazarus to hire the cabal’s go to political consultant Walter Whetsell and his Starboard Communications for the special primary.

The choice tomorrow is between the cabal’s candidate, Brittain, and former Myrtle Beach Mayor Mark McBride.

Clemmons did the bidding of the cabal, securing passage of the enabling legislation for the Tourism Development Fee in 2009 and amending the original legislation to eliminate the ten-year sunset provision so the fee could be continued ad infinitum.

Clemmons was also a major voice pushing I-73 at the state level but was wholly unsuccessful in obtaining any construction grants from the state for the road.

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Brittain has Clemmons, McBride has Answers

In this strangest of all election seasons, the voters of SC House District 107 are going to the polls next week to vote in what may be the strangest of all – a special primary election to nominate a Republican candidate for the November general election.

Case Brittain, the defeated candidate from the June Republican primary for District 107, and former Myrtle Beach Mayor Mark McBride are the candidates on the ballot for the special primary.

Only two months ago, Alan Clemmons won the regular Republican primary for nomination to what would have been his tenth term as representative for District 107.

Five weeks later, Clemmons resigned from the House and sent an affidavit to the SC Election Commission citing the necessity of concentrating on his family and law practice as reasons for removing himself as the Republican candidate.

It is important to note here that Clemmons affirmed to the election commission, under penalty of perjury, that his dropping out as the nominated candidate was for “non-political reasons”, a requirement for the party to conduct a special election to nominate a replacement candidate for the general election.

Nowhere in Clemmons’ statement did it mention the widely circulated story that Clemmons expects to be selected as the Master in Equity judge for Horry County when the position becomes vacant next July. South Carolina law requires a member of the General Assembly to be out of office for a minimum of one year before they can become a judge or a lobbyist. The Master in Equity position currently pays approximately $180,000 per year. State funded pensions are based on a person’s highest three years of salary.

Shortly after resigning from the House, Clemmons received the appointment of the Chairman of the House Ways and Means Committee to serve on the three member South Carolina Board of Economic Advisers, a position that supposedly “specific working knowledge and experience in economics, revenue forecasting, and the state budget process,” according to state law. The position pays $8,000 per year and, more importantly, qualifies for state funded benefits such as health insurance and retirement.

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North Myrtle Beach Tourism Development Fee Crushed in Vote

The possibility of a Tourism Development Fee in North Myrtle Beach suffered a crushing defeat Tuesday at the polls.

The unofficial tally was 188 Yes votes for the TDF against 3,050 No votes. The results will be certified by the North Myrtle Beach Election Commission Thursday.

Defeat of the TDF is not surprising. What is surprising is the turnout. In the days before the election, I spoke with several seasoned political professionals from Horry County to get their predictions for turnout. They all agreed the number of voters that would go to the polls would range from 750-1,000.

Those predictions were based on past turnout for special elections in Horry County and tempered by the fact that candidates were not on the ballot, just a single referendum question.

To put the numbers more in perspective, a special election in March on a referendum question only drew a total of 3,238 votes. The vote for mayor in the November 2017 city general election saw 3,670 total votes with Mayor Marilyn Hatley winning with 2,765 votes out of 3,670 votes cast. In that same election, councilman Terry White ran unopposed and only gained 2,894 votes.

To call the number of votes cast on this referendum question astounding is to understate it. But, it may also prove to be the high-water mark of politics for the current city council.

The result is exactly what, I believe, North Myrtle Beach city council members wanted from the beginning, a resounding repudiation of the TDF in a referendum vote to take that issue out of the political discussion once and for all. Several council members were quite outspoken with op-eds and social media during the campaign about their opposition to the TDF.

In my opinion, a presentation about the TDF by Mike Mahaney at the Tidewater Homeowners Association on February 19, 2018, one that I personally attended, hinted at other, one could say even better, options for the city than the TDF. The entire North Myrtle Beach city council attended the meeting after the city issued a notice three days before that there was no city council meeting February 19th.

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NMB TDF Vote Today

North Myrtle Beach voters will go to the polls tomorrow to decide whether a Tourism Development Fee will be instituted in the city.

I support the decision of the North Myrtle Beach City Council to allow this decision to be left up to the voters. Additionally, I support statements from council that, if passed, only the minimum TDF revenue required by law would be used for owner-occupied property tax relief with the majority of that revenue used to benefit all the citizens of the city with improved infrastructure.

The TDF was introduced to the state and this area in 2009. Since that time, it has been my opinion the TDF is used in Myrtle Beach to benefit the Myrtle Beach Area Chamber of Commerce, certain large business owners in that city and residents who live in high end homes.

The North Myrtle Beach approach is significantly different. The city is demonstrating it is not Myrtle Beach in the way TDF funds will be used if the referendum passes.

Since the recent North Myrtle Beach city council budget retreat, it appears city residents are in for some type of tax increase. A property tax increase of 2-3 mills was discussed by council at the retreat.

During presentations about the TDF, City Manager Mike Mahaney discussed the need to find a funding source to address parking problems around the city because public safety people are being tied up dealing with parking problems when they could be better utilized performing other duties.

If the TDF passes, city revenue from the fee could be the funding source for addressing parking problems, which would also benefit public safety by freeing personnel for other needs. Revenue for marketing North Myrtle Beach would be used to promote the North Myrtle Beach brand in order to maintain a strong economy in the city.

Mahaney said one mill of property tax brings in revenue of $375,000 to the city. Three mills, therefore, would bring the city an additional $1,125,000 in revenue for parking and other infrastructure.

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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

“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

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

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

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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