Thousands of downtown Myrtle Beach property owners could be paying more

Thousands of downtown Myrtle Beach property owners are likely going to pay more in taxes over the next decade as part of a plan to bring more activity and investment into of South Carolina’s most popular tourism spot.

That includes all secondary homeowners along with short-term rental and commercial properties — more than 3,600 in total across a 689-acre swath that runs from from 11th Ave. S to 21st Ave. N and also includes Withers Swash Drive, N. Kings Highway and much of Boardwalk.

In all, properties within the district have a total assessed value of $60 million, according to data provided by the Horry County Assessor’s Office.

The “municipal improvement district,” as officials are calling it, is expected to generate at least $6 million over a 10-year span for targeted improvements including business recruitment, aesthetic upgrades and special events

“We want to bring love and attention to this neglected district,” Myrtle Beach Downtown Alliance chief Amy Barrett said Aug. 11. “I think we’re on our way to punching above our weight in terms of quality of life, but we still have a ways to go.”

Primary residences taxed at 4 percent of their value under state law won’t have to pay the additional one percent tax, but any income-generating properties or second homes, which are assessed at 6 percent, will.

It would look something like this.

The City Council on Aug. 11 rejected nine exemption requests from properties within the district that are on the 6 percent rate.

That bothered Melvin Randall and Elizabeth Sigmon, who own a condominium at Camelot by the Sea that’s used as a second home and would have to pay $153 more.

“Commercial property, businesses and rental properties can recoup this special MID assessment by passing the costs onto their customers and/or possibly writing off the special assessment on taxes as a business expense,” they wrote in a letter of protest to the city. “We cannot. As second home owner-occupants, we do not see this special MID assessment as fair.

Barrett said officials expect to generate at least $600,000 a year to help pay for downtown improvement projects.

Creating a dedicated revenue stream to spur more economic activity has been a long sought-after goal in the city, with the Downtown Redevelopment Corporation pitching the concept of a special tax district as far back as 2014.

Barrett said the district’s tax revenues, which the downtown alliance will oversee, will pay for street festivals and events in the downtown area while also funding long-term initiatives such as business recruitment, creation of workforce housing and beautification efforts.

The alliance’s 21-member board will oversee management of the district’s funds.

A May resolution describing the district’s scope says it will include an “ambassador program,” allocations for events and marketing, planning and research and special projects.

Barrett said the alliance plans to hold quarterly meetings on how the tax revenue is being spent.

The district is taking shape alongside other high-profile revitalization plans.

Last year, the city agreed to spend $15 million on a 10-parcel land buy targeting mothballed locations near its Arts and Innovation sector: Two commercial properties, seven hotels and a vacant lot.

Three more pieces of land were purchased in the spring to help with stormwater retention and private sector investment.

It’s a lot of activity that one long-time merchant hopes bring meaningful change to one of the Palmetto State’s most famous places.

“I think it’s a good idea, because we need some vitality down here. We need people feeling that it’s safe to come downtown, and for businesses to open up,” William Miller, who runs William H. Miller Studios & Fine Art on Main Street, said. “I’m excited to see the area grow and change.”

This story was originally published August 12, 2022 at 5:00 AM.