It’s time for a revised tourism tax to help address Myrtle Beach’s many challenges

Is Myrtle Beach an embarrassment?

And what can be done about it?

In fiscal year 2021 the city is obligated to pay almost $8 million in interest on almost $200 million in debt.

The city is constantly in the news for the violence in its downtown area, which is so impoverished that it was proudly declared by our mayor to be a federally recognized opportunity zone

The city is facing numerous lawsuits due in part to alleged heavy-handed dealings with property owners that include forcing out a tenant — who lost her life savings from her military service — and then subsequently buying that building and tearing it down.

Meanwhile, the city:

▪ Purchased property that will compete with private industry by renting office space to tenants.

▪ Paid $5,000 to list on the historic register a church that it does not own.

▪ Bought an old theater and is spending thousands renovating it for Coastal Carolina University to use free of charge for five years.

▪ Is working to renovate a library for Coastal Carolina University to use for $1 per year for up to 70 years.

In addition city leaders still want to construct a museum for an organization they don’t own — as well as a new city hall that we can’t afford.

Revise the fee

A new South Carolina House District 107 representative will be elected soon, and that means that the local legislative delegation will have both an opportunity and obligation to revise the Tourism Development Fee.

The Tourism Development Fee, commonly known as the “tourism tax,” is currently a 1% local option tax.

The Tourism Development Fee provides 80% of the tax to the Myrtle Beach Chamber of Commerce for out-of-state advertising. With tourism being down, the chamber is projected to have $42 million in total income from local governments; that would be a decrease from the $50 million.

I believe it is time to make a revision to the enabling Tourism Development Fee state law. My proposed revision calls for flipping the percentages so that 80% of the revenue would go to the city — with the remaining 20% allocated to the chamber.

The city would continue to spend 20% of the funds in the same manner that it spends the current 20% it receives; meanwhile, the 60% in new additional funds would be devoted to reducing the city’s debt.

Once the debt is paid, future revenue could go into the general fund.

Spend money wisely

The city could then afford to maintain its current assets better while building new ones like free parking garages, beach restrooms for area residents to use. It would be a far better use of money than going into debt while devoting funds to putting “heads on beds” to benefit vacation property owners.

Under this revised plan, the chamber would be required to use a portion of their new 20% share toward advertising the industrial parks in our county to help diversify our economy.

Myrtle Beach needs new leaders — and it needs a revised Tourism Development Fee.

Ann Dunham is a business owner in Myrtle Beach.