Myrtle Beach threatens to kill Horry County hospitality fee. Here’s why
Myrtle Beach appears to be shifting gears on the hospitality fee lawsuit, now seeking to make the entire 1.5 percent fee illegal.
City lawyers said in the footnote of a court filing that they were planning on filing a motion to the circuit court that would call into question the entire 1996 ordinance that started the hospitality fee.
“This statement will clarify that grounds exist to invalidate Ordinance 105-96 in its entirety,” the motion states.
Horry County Ordinance 105-96 is the original law that set up the hospitality fee with the intent of using tourist money to pay for road improvements across Horry County. The fee is a service charge that must be used for specific projects that benefit tourists and cannot be used for recurring expenses.
The city believes the county’s recent actions are not in line with how the county said money is supposed to be spent, notably on building I-73.
At the end of 2019, Horry County voted to cancel its contract with SCDOT to build I-73 and said it would not fund the road unless other governments put some “skin in the game.” Then the county council rejected a mediation deal to end the lawsuit over concerns that millions of fee money would be given to city attorneys.
Myrtle Beach said in its filing that these actions are not in line with the intent of the hospitality fee to identify specific projects nor with filings from the county stating the hospitality money is to be used for I-73.
City Spokesperson Mark Kruea said the city would not comment further.
Before Myrtle Beach can file any motion, Circuit Court Judge William Seals Jr. needs to lift a stay that halted the lawsuit until Horry County’s appeal of Seals’ order is over.
Over the summer, Seals ordered Myrtle Beach could collect the hospitality fee within its borders but the money must be kept in trust. Horry County appealed this decision saying it violated the status quo.
Seals also asked both governments to undergo mediation to bring the matter to an end without a trial. After more than 20 hours of mediation, a compromise was reached, but county council did not approve the deal over concerns it gave millions in fee dollars to city attorneys.
