2017-2018 Bill 917: Accommodation and Hospitality Tax Expenditures - South Carolina Legislature

South Carolina General Assembly

122nd Session, 2017-2018

S.917

STATUS INFORMATION

General Bill

Sponsors: Senators Kimpson, Scott and Campsen

Document Path: l:\council\bills\bbm\9728dg18.docx

Companion/Similar bill(s): 4880

Introduced in the Senate on January 23, 2018

Introduced in the House on February 28, 2018

Last Amended on May 9, 2018

Currently residing in conference committee

Summary: Accommodation and hospitality tax expenditures

HISTORY OF LEGISLATIVE ACTIONS

DateBodyAction Description with journal page number

1/23/2018SenateIntroduced and read first time (Senate Journalpage12)

1/23/2018SenateReferred to Committee on Finance(Senate Journalpage12)

2/7/2018SenateCommittee report: Favorable with amendment Finance (Senate Journalpage32)

2/8/2018Scrivener's error corrected

2/13/2018SenateCommittee Amendment Adopted (Senate Journalpage12)

2/14/2018Scrivener's error corrected

2/20/2018SenateAmended (Senate Journalpage23)

2/21/2018Scrivener's error corrected

2/21/2018SenateRead second time (Senate Journalpage16)

2/21/2018SenateRoll call Ayes41 Nays1 (Senate Journalpage16)

2/27/2018SenateRead third time and sent to House (Senate Journalpage19)

2/28/2018HouseIntroduced and read first time (House Journalpage4)

2/28/2018HouseReferred to Committee on Ways and Means(House Journalpage4)

5/3/2018HouseRecalled from Committee on Ways and Means(House Journalpage26)

5/8/2018HouseDebate adjourned until Wed., 5918 (House Journalpage45)

5/9/2018HouseAmended (House Journalpage31)

5/9/2018HouseRequests for debateRep(s).GR Smith, McCravy, Wheeler, Hewitt, Toole, Crawford, Jefferson, Elliott, Erickson, Stringer, Trantham, Loftis, Hamilton, Long, Forrester, Dilliard, Huggins (House Journalpage40)

5/9/2018HouseRequests for debate removedRep(s).Huggins, Jefferson, McCravy, Wheeler, Long, Dilliard, Trantham, Hamilton, Elliott, Crawford, Erickson, GR Smith, Forrester (House Journalpage106)

5/9/2018HouseRead second time (House Journalpage111)

5/9/2018HouseRoll call Yeas82 Nays15 (House Journalpage115)

5/10/2018HouseRead third time and returned to Senate with amendments (House Journalpage20)

5/10/2018HouseRoll call Yeas78 Nays20 (House Journalpage21)

5/10/2018SenateNonconcurrence in House amendment (Senate Journalpage58)

5/10/2018SenateRoll call Ayes0 Nays41 (Senate Journalpage58)

5/10/2018HouseConference committee appointed Pitts, Finlay, Crawford (House Journalpage83)

5/10/2018SenateConference committee appointed Davis, Scott, Goldfinch (Senate Journalpage59)

View the latest legislative information at the website

VERSIONS OF THIS BILL

1/23/2018

2/7/2018

2/8/2018

2/13/2018

2/14/2018

2/20/2018

2/21/2018

5/3/2018

5/9/2018

Indicates Matter Stricken

Indicates New Matter

AMENDED

May 9, 2018

S.917

Introduced by Senators Kimpson, Scott and Campsen

S. Printed 5/9/18--H.

Read the first time February 28, 2018.

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ABILL

TO AMEND SECTIONS 61530, 61730, AND 6410, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO THE EXPENDITURE OF THE STATE ACCOMMODATIONS TAX, LOCAL HOSPITALITY TAX, AND LOCAL ACCOMMODATIONS TAX, RESPECTIVELY, SO AS TO ALLOW THE REVENUE TO BE EXPENDED FOR THE CONTROL AND REPAIR OF FLOODING AND DRAINAGE AT TOURISMRELATED LANDS OR AREAS.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION1.A.Section 61530(A) of the 1976 Code is amended to read:

“(A)The revenue generated by the local accommodations tax must be used exclusively for the following purposes:

(1)tourismrelated buildings including, but not limited to, civic centers, coliseums, and aquariums;

(2)tourismrelated cultural, recreational, or historic facilities;

(3)beach access, renourishment, or other tourismrelated lands and water access;

(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 to serve tourismrelated demand;

(7)subject to subsection (C), control and repair of flooding and drainage, including beach outfalls, within or on tourismrelated lands or areas; or

(8)site preparation including, but not limited to, demolition, repair, or construction, to be used for the subitems of this section.”

B. Section 6-1-530 of the 1976 Code is amended by adding a subsection at the end to read:

“(C)(1)The provisions of subsection (A)(7) only may be utilized in counties which have collected at least fourteen million dollars in state accommodations taxes as imposed pursuant to Section 1236920(A) in the most recent fiscal year for which full collection figures are available. Once a county meets this threshold it thereafter may utilize the provisions of subsection (A)(7).

(2)If applying the provisions of subsection (A)(7), the revenues must be expended exclusively on beach outfalls or other public works projects designed to eliminate or mitigate adverse effects of recurrent nuisance tidal flooding, including that which is attributable to sea-level rise, or other recurrent flooding. Such adverse effects include road closures and other transportation disruptions, stormwater drainage issues, and compromised public infrastructure. The beach outfalls or other public works projects must be within or on tourism-related lands or areas. Revenues must not be used to pay claims or otherwise settle litigation that may arise from time to time due to the harmful impacts of nuisance or other flooding.

(3)A county may not expend more than thirty percent of the revenues of the local accommodations tax authorized in this article on the purposes set forth in subsection (A)(7).

(4)The provisions of subsection (A)(7) may not be utilized and the revenues may not be expended for such purposes after July 1, 2028. However, if a county has begun a project or pledges the revenues for the servicing of bonds on such projects before July 1, 2028, the provisions of subsection (A)(7) remain effective for that county until such project is completed or until the indebtedness on such bonds is discharged, as applicable.”

SECTION2.A.Section 61730(A) of the 1976 Code is amended to read:

“(A)The revenue generated by the hospitality tax must be used exclusively for the following purposes:

(1)tourismrelated buildings including, but not limited to, civic centers, coliseums, and aquariums;

(2)tourismrelated 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 to serve tourismrelated ddemand;

(7)subject to subsection (C), control and repair of flooding and drainage, including beach outfalls, within or on tourismrelated lands or areas; or

(8)site preparation including, but not limited to, demolition, repair, or construction, to be used for the subitems of this section.”

B. Section 6-1-730 of the 1976 Code is amended by adding a subsection at the end to read:

(3)A county may not expend more than thirty percent of the revenues of the hospitality tax authorized in this article on the purposes set forth in subsection (A)(7).

SECTION3.Section 6410(4)(b) of the 1976 Code is amended to read:

“(b)The funds received by a county or municipality which has a high concentration of tourism activity may be used to provide additional county and municipal services including, but not limited to, law enforcement, traffic control, public facilities, and highway and street maintenance, as well as the continual promotion of tourism. The funds must not be used as an additional source of revenue to provide services normally provided by the county or municipality but to promote tourism and enlarge its economic benefits through advertising, promotion, and providing those facilities and services which enhance the ability of the county or municipality to attract and provide for tourists.

‘Tourismrelated expenditures’ include:

(i) advertising and promotion of tourism so as to develop and increase tourist attendance through the generation of publicity;

(ii)promotion of the arts and cultural events;

(iii)construction, maintenance, and operation of facilities for civic and cultural activities including construction and maintenance of access and other nearby roads and utilities for the facilities;

(iv)the criminal justice system, law enforcement, fire protection, solid waste collection, and health facilities when required to serve tourists and tourist facilities. This is based on the estimated percentage of costs directly attributed to tourists;

(v)public facilities such as restrooms, dressing rooms, parks, and parking lots;

(vi)tourist shuttle transportation;

(vii)control and repair of waterfront erosion, including beach renourishment;

(viii)operating visitor information centers;

(ix)site preparation including, but not limited to, demolition, repair, or construction to be used for the subitems of this section; and

(x)control and repair of flooding and drainage, including beach outfalls, within or on tourismrelated lands or areas.

The provisions of item (b)(x) only may be utilized in counties which have collected at least fourteen million dollars in state accommodations taxes as imposed pursuant to Section 1236920(A) in the most recent fiscal year for which full collection figures are available. Once a county meets this threshold it thereafter may utilize the provisions of item (b)(x).

If applying the provisions of item (b)(x) relating to flooding and drainage, the revenues must be expended exclusively on beach outfalls and on other public works projects designed to eliminate or mitigate adverse effects of recurrent nuisance tidal flooding, including that which is attributable to sea-level rise, or other recurrent flooding. Such adverse effects include road closures and other transportation disruptions, stormwater drainage issues, and compromised public infrastructure. The beach outfalls or other public works projects must be within or on tourism-related lands or areas. Revenues must not be used to pay claims or otherwise settle litigation that may arise from time to time due to the harmful impacts of nuisance or other flooding.

A county or municipality may not expend more than thirty percent of the revenues of the local accommodations tax on the purposes set forth in item (b)(x).

The provisions of item (b)(x) may not be utilized and the revenues may not be expended for such purposes after July 1, 2028. However, if a county or municipality has begun a project or pledges the revenues for the servicing of bonds on such projects before July 1, 2028, the provisions of item (b)(x) remain effective for that county or municipality until such project is completed or until the indebtedness on such bonds is discharged, as applicable.”

SECTION4.This act takes effect upon approval by the Governor.

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