County eyes additional one percent sales tax

By Ruben Lowman

The landscape of local taxation in Horry County got a major green light from the state’s highest legal office this week.

Following a formal inquiry, the South Carolina Attorney General’s Office issued a legal opinion confirming that Horry County is legally permitted to ask voters for an additional one percent Local Option Sales Tax (LOST).

The primary concern for county leaders was whether the existing taxation in Myrtle Beach would act as a legal barrier. Since 2009, Myrtle Beach has collected a one percent Tourism Development Fee (TDF), a unique assessment used for out-of-state marketing and residential property tax rollbacks.

Because no other city in the state had this specific combination of taxes, officials sought a definitive ruling from Attorney General Alan Wilson.

The recent verdict was clear. Assistant Attorney General Sabrina C. Todd stated that state law contains no language prohibiting a county-wide sales tax simply because a municipality within that county already imposes a development fee.

The opinion further noted that while concurrent taxes are legal, “clarity in property tax bills will be important” to ensure residents understand how the various offsets and assessments are being applied.

If this new tax is eventually approved by voters, it would bring the total sales tax on eligible items in Horry County to nine percent. Currently, the rate sits at eight percent, which is comprised of: six percent – Statewide sales tax; one percent – Education Capital Improvements (ECI) tax; and one percent – Transportation tax (RIDE programs).

The Local Option Sales Tax is a common tool across the Palmetto State, having already been utilized by over 30 counties including local neighbors like Dillon, Marion and Florence.

Unlike the transportation tax, which is strictly for roads, a sales tax is generally used to generate revenue that allows the county to provide a “rollback” on the millage rate, effectively lowering property tax bills for residents by shifting a portion of the tax burden onto visitors and consumers.

While the legal green light has been given, the tax is far from a done deal. Under South Carolina law, a sales tax of this nature cannot be enacted by a simple council vote, it requires a direct referendum.

This means the choice ultimately rests with Horry County voters.

County officials have previously discussed the potential for this tax during past budget retreats, suggesting that it would allow the county to capture more revenue from the millions of tourists who visit annually.

By using that “tourist money” to fund county services, leaders argue they can provide significant property tax relief for local homeowners. With the legal hurdles now removed, the focus shifts to whether council will officially place the question on a future ballot.