In midst of lawsuit, Myrtle Beach City Council renews tourism tax

The Tourism Development Fee has officially been renewed by Myrtle Beach City Council for another 10 years, after a lawsuit was filed last week against the use of TDF and accommodations tax funds.

The vote was unanimous.

The 1-percent sales tax will be in effect until Aug. 1, 2029. Council members chose to reinstate the tax through a super-majority vote, meaning residents did not have a say in whether or not they want the tax.

Now, the suit, filed by Karon Mitchell alleges that the chamber paid "crony companies," businesses started by former or current chamber members, more than $30 million from TDF and A-tax funds.

The suit was filed against the Myrtle Beach Area Chamber of Commerce, the City of Myrtle Beach and Horry County.

"I do not want to do away with the TDF or the people's tax credit for their property," Mitchell said during a press conference. "I'm asking for accountability. I'm asking for accountability for the money. Let us know where it's going, let us know your procedure, let us know why you're not bidding on it and sending out bids on everything."

City officials have not commented on suit, saying they do not comment on pending litigation. During a press conference Tuesday afternoon, board chair for the chamber Carla Schuessler called to suit "a baseless, vindictive attack" that is "filled with unsubstantiated allegations."

Before public comment regarding the TDF began, Myrtle Beach Mayor Brenda Bethune said, "Since there is some pending litigation, this is not a court of law and neither the city, the county, the chamber or neither of us the is on trial today."

The room filled with members of the chamber of commerce, as well as board members. During public comment, residents for and against the tax spoke.

"I have high hopes that things will change," resident Ann A. Dunham said. "So far it's not working."

Prior to the vote, the fourth quarter annual report was presented, as required by council during the first reading.

"This is not news that this audit is being presented, but the audit has been a public document for years," councilwoman Mary Jeffcoat said.

The first reading

During the first reading for the tax, where not one city council member opposed the tax, Bethune said residents did have a referendum when they voted in the November elections for city council and mayoral seats.

"The entire time I was campaigning I talked with voters about it and not one person asked me to do away with it," Bethune said in March. "So, I look at that as a referendum because people did vote and if they were against it, I would think they would have voted against the people who were in favor of it."

The tax was originally introduced by former Myrtle Beach Mayor John Rhodes in 2009. The tax was imposed by a super-majority vote.

By law, 80 percent of the tax must go to out-of-state marketing. That means that 20 percent can be used for tax rebates, but at least 4 percent must be used for property tax rebates. The rest of the money can go back to the city.

In the City of Myrtle Beach, 80 percent of the tax goes to the Myrtle Beach Area Chamber of Commerce for out-of-state marketing.

Fourteen percent goes for property tax relief, and six percent is used for tourism-related capital projects.

This story was originally published April 10, 2018 at 3:23 PM with the headline "In midst of lawsuit, Myrtle Beach City Council renews tourism tax."