1997 LEGISLATIVE SUMMARY
First Annual Session
112th General Assembly of South Carolina
Prepared by Office of Senate Research
Copyright (c) 1997 by South Carolina Senate
Local Government
Local Accommodations and Hospitality Taxes
Chapter 1, Title 6, is amended to authorize a local governing body to impose by
ordinance adopted by positive majority vote:
(1) a local accommodations tax of up to three percent (on the gross proceeds
derived from rental or charges for accommodations furnished to transients and imposed on
persons furnishing accommodations to transients for consideration); and
(2) a local hospitality tax up of to two percent (on the sales of prepared meals
and beverages sold in establishments, including establishments licensed for on-premises
consumption of alcohol, beer, or wine). Unless a municipal governing body consents, a
county governing body may not impose within municipal boundaries a local accommodations
tax in excess of one and one-half percent or a local hospitality tax in excess of one
percent. For any portion of a county area, the maximum cumulative rates for county and
municipal local accommodations taxes is three percent (two percent for county and
municipal local hospitality taxes). If the cumulative totals of the taxes exceeded these
limitations prior to December 31, 1996, the cumulative rates may not exceed the rates
imposed as of December 31, 1996. A county or municipal ordinance enacted before March 15,
1997, which imposes an accommodations fee remains authorized and effective after this
act's effective date, if the cumulative rate does not exceed three percent, the fee is
calculated upon a tax base consistent with this act, and fee revenue is used for the
purposes listed in this act. Revenue bonds may be issued for the purposes listed in this
act (retired using fee proceeds and other nontax revenues available).
Proceeds of each tax must be kept in a fund separate and segregated from
the general fund and all interest generated must be credited to the separate fund. The tax
revenue must be used exclusively for:
(1) tourism-related buildings (civic centers, coliseums, aquariums,
etc.);
(2) cultural, recreational, or historic facilities;
(3) beach access and renourishment;
(4) highways, roads, streets, and bridges
providing access to tourist destinations;
(5) advertisements and promotions related to tourism development; or
(6) water and sewer infrastructure serving
tourism-related demand. In a county in with at least $900,000 in annual collections of the
general accommodations tax imposed by Section 12-36-920, local accommodations tax and
hospitality tax revenue also may be used for the operation and maintenance of programs
directly attendant to the facilities listed above, including police and fire protection,
emergency medical services, and emergency-preparedness operations...
