(A)(1) Except as provided in item (2) of this subsection, all revenues and interest of the fee must be used exclusively for tourism advertisement and promotion directed at non-South Carolina residents.
(2) Revenues received in the second and subsequent years of imposition must be used as provided in item (1) except that up to twenty percent may be retained by the municipality and used as follows:
(a) at least twenty percent of the amount retained must be used to provide a credit against the property tax liability imposed by the municipality on parcels of owner-occupied residential property located in the municipality classified for property taxes pursuant to Section 12-43-220(c). The credit is an amount determined by multiplying the appraised value of the residence by a fraction in which the numerator is the total estimated revenue retained by the municipality allocated to the credit and the denominator is the total of the appraised value of all such property in the municipality as of January first of the applicable property tax year. For purposes of this calculation, appraised value is as defined in Section 12-37-3130(3) reduced by the limitation provided pursuant to Section 12-37-3140(B);
(b) the balance for tourism-related capital projects. No capital project is eligible to be funded directly or indirectly with fee revenues unless the project consists of construction of new or renovation of existing tourism-related facilities intended to grow or maintain the overnight tourism market in the municipality; and
(c) the credit allowed pursuant to subitem (a) of this item applies after all other credits have been applied. To the extent that the credit amount allowed by this item exceeds the municipal property tax liability, the excess credit is added to the amount set aside for use as provided in subitem (b) of this item. If no projects are funded pursuant to subitem (b) of this item, the excess credit must be used to provide a credit against the municipal tax liability of all taxable property in the municipality ineligible for the credit allowed by subitem (a) of this item. This credit must be calculated in the same manner as the credit provided in subitem (a), mutatis mutandis.
(B) The municipality shall designate no more than two organizations within the county to receive the revenues and interest and conduct the promotional activities provided pursuant to subsection (A)(1). These organizations must be nonprofit destination marketing organizations representing a broad cross-section of tourism interests within the county. In addition, before an organization may be designated, it must certify to the imposing municipality that:
(1) its promotional and advertising programs are based on research based outcomes;
(2) the organization has a proven record of success in creating new and repeat visitation to the county;
(3) it has sufficient resources to create, plan, implement, and measure the marketing program generated by the fee revenues;
(4) it will use the funds only for the purposes provided pursuant to subsection (B)(1) of this section.
(C) Municipalities located in the same county that are imposing a fee pursuant to this article jointly may designate a regional tourism promoter located in the county to jointly promote tourism in the municipalities imposing the fee. The regional tourism promoter must be designated in the manner provided in subsection (B) and only may promote tourism to non-South Carolina residents.
(D) At least quarterly, an organization designated by the municipality pursuant to this section shall provide a report to the municipality that includes identification of revenues received from the Local Option Tourism Development Fee during the previous quarter, as well as expenditures made from those funds during the previous quarter. Each report also shall be posted by the organization on its website.
HISTORY: 2009 Act No. 3, Section 1, eff upon approval (became law without the Governor's signature on April 9, 2009); 2010 Act No. 130, Sections 1, 2, eff upon approval (became law without the Governor's signature on February 25, 2010).
Effect of Amendment
The 2010 amendment rewrote subsection (A) and added subsection (D).
Structure South Carolina Code of Laws
Chapter 10 - Local Sales And Use Tax
Section 4-10-20. Rate of tax; exemptions; reports by utilities; rental units.
Section 4-10-25. Construction contracts; application.
Section 4-10-35. Petition to rescind tax; referendum.
Section 4-10-40. Distribution of revenue allocated to Property Tax Credit Fund.
Section 4-10-50. Distribution of revenue set aside for the County/Municipal Revenue Fund.
Section 4-10-67. Deposit and distribution of local option use tax.
Section 4-10-70. Determination of amount to be received by eligible unit within county area.
Section 4-10-80. Reports as to total amount of revenue collected.
Section 4-10-100. Commencement of local sales and use tax.
Section 4-10-300. Short title.
Section 4-10-310. Imposition of tax.
Section 4-10-315. Additional sale and use tax not exceeding one percent.
Section 4-10-320. Commission creation; composition.
Section 4-10-330. Contents of ballot question; purpose for which proceeds of tax to be used.
Section 4-10-340. Tax imposition and termination.
Section 4-10-350. Department of Revenue to administer and collect local tax.
Section 4-10-360. Revenue remitted to State Treasurer and held in a separate fund.
Section 4-10-370. Calculating distributions to counties; confidentiality.
Section 4-10-380. Unidentified funds; transfer and supplemental distributions.
Section 4-10-390. Reimposition of tax.
Section 4-10-410. Citation of act.
Section 4-10-415. Definitions.
Section 4-10-425. Procedure for imposing tax; referendum; ballot.
Section 4-10-430. Commencement and termination.
Section 4-10-435. Collection and administration by Department of Revenue.
Section 4-10-440. Remitting revenues to State Treasurer; distribution and use of proceeds.
Section 4-10-445. Application of proceeds to debt service.
Section 4-10-450. Availability of data to calculate distributions and estimate revenues.
Section 4-10-460. Renewal or reimposition of tax.
Section 4-10-470. Counties in which sales and use tax may be imposed.
Section 4-10-510. Short title.
Section 4-10-530. Meaning of "county".
Section 4-10-540. Imposition of sales and use tax to replace vehicle tax.
Section 4-10-550. Ordinance and referendum; certification of results.
Section 4-10-560. Date of imposition.
Section 4-10-570. Petition to rescind; referendum.
Section 4-10-580. Administration and collection.
Section 4-10-590. Distribution of revenues.
Section 4-10-600. Availability of data to calculate distributions.
Section 4-10-720. Definitions.
Section 4-10-730. Local option sales and use tax; credit against property tax liability.
Section 4-10-750. Subsequent referendum.
Section 4-10-760. Referendum on question of rescinding tax.
Section 4-10-770. Collection process.
Section 4-10-780. Distribution of revenues.
Section 4-10-800. Millage limits.
Section 4-10-910. Citation of article.
Section 4-10-920. Definitions.
Section 4-10-940. Allowable fee; administration and collection.
Section 4-10-960. Information for purpose of calculating distributions and estimating revenues.
Section 4-10-980. Reimposition of local option tourism development fee.
Section 4-10-1010. Preservation procurements defined; sales and use tax.
Section 4-10-1030. Imposition and termination of the tax.
Section 4-10-1040. Administration and collection of the tax.
Section 4-10-1050. Distributions to counties; confidentiality.
Section 4-10-1060. Unidentified funds, transfers, and supplemental distributions.