Penny sales tax shelved by county committee

By Ruben Lowman

In a move that surprised both proponents and critics, the Horry County Council’s Administration Committee unanimously voted to table the 1% Local Option Sales Tax (LOST), effectively ending any chance of the measure appearing on the November 2026 ballot.

What began as a “win-win” proposal to shift the tax burden onto tourists has succumbed to a mix of bad timing, internal skepticism and a lack of organized political backing.

Committee Chair Tyler Servant helped lead the opposition against the proposed penny sales tax, arguing that for the average resident the tax was essentially a “wash.”

While a family might save $175 on property taxes, they were projected to spend an additional $135 to $165 annually at the cash register.

The relief was also wildly lopsided for county residents. A homeowner in the City of Conway stood to gain nearly $800 in relief, while a rural resident in the unincorporated parts of the county saw less than $200.

Since the tax provides relief only to property owners, Horry County’s significant renter population would have faced a nine percent sales tax with zero offset.

Additionally, in South Carolina, public money cannot be used to campaign for ballot measures. For the LOST tax to pass, it needs a heavyweight champion, usually a Chamber of Commerce.

The Myrtle Beach Area Chamber of Commerce has notably refused to endorse the tax, choosing instead to focus on reforming the existing Tourism Development Fee (TDF).

Leaders pointed to neighboring Georgetown County, where a similar tax failed in 2024 despite a coordinated chamber campaign.

Without a private group willing to fund the education and marketing of the tax, the council felt they were walking into a buzzsaw.

The calendar was the final nail in the coffin. Because the South Carolina Attorney General didn’t issue a legal “green light” until last month, the county was left with a frantic timeline.

Councilmember Mike Masciarelli noted, “We just don’t have enough time to get this done right.”

To make the November ballot, the ordinance needed three readings by August 15, leaving no room for the “community outreach” councilmembers deemed necessary to flip voters who have rejected this tax twice before in 1992 and 2001