|
Judge issues ruling after state questions MB tourism tax spending - Jan. 24, 9:35 p.m.
|
|
|
|
|
|
|
An administrative law judge has denied separate motions filed by the City of Myrtle Beach and the State Tourism Expenditure Review Committee concerning the city's controversial method of distributing a-taxes. (File photo).
|
|
|
|
|
By Michael Smith
Editor
An administrative law judge has stricken separate motions filed by the City of Myrtle Beach and a state panel that’s questioning how the city spends more than $4.3 million in tourism taxes.
But the case is far from finished, as the judge has given the city more time to submit additional paperwork as the case continues to evolve.
The issue swirls around Myrtle Beach’s controversial practice of
doling out the bulk of revenues from its share of the 2 percent state
accommodations tax to public safety.
How the case could unfolds could set a precedent for how other Horry County governments address a-taxes, especially since some county leaders have proposed mimicking Myrtle Beach's method of distributing a-taxes.
On Jan. 20, Administrative Law Judge Carolyn Matthews signed an order dismissing the city’s motion for preliminary relief.
But Judge Matthews also signed an order rejecting a motion to dismiss filed by the state’s Tourism Expenditure Review Committee (TERC), leaving the case open to further challenge.
In 2006-2007, the city awarded $4.3 million to public safety. TERC is questioning allocation, saying it’s disproportionate to the number of tourists that visit Myrtle Beach.
City leaders say the money is needed to offset the impact created by large volumes of tourists visiting the area.
“The city does not have another source of funds to make up the funds needed for additional law enforcement, traffic control, public facilities and highway and street maintenance services,” city attorneys say in court papers.
But the TERC holds a different position.
According to court records, the TERC doesn’t doubt Myrtle Beach has a right to use a-taxes to augment public safety operations.
But the panel says the city’s expense of $4.3 million in a-taxes goes far beyond the intent of state law, which says funds “must not be used as an additional source of revenue to provide services normally provided by the…municipality,” court papers show.
TERC also says the city’s court filing is premature, noting the agency has never withheld any money from Myrtle Beach.
“TERC has not even reviewed the city’s 2008-2009 expenditures,” the TERC’s motion states. “In bringing this proceeding, the city is attempting a pre-emptive strike against TERC’s future review of the 2008-2009 expenditures.”
Read more on this developing story in the Jan. 28 edition of the Carolina Forest Chronicle.
|
|
|
|
|
|
Submitted By:
Frog |
Submitted:
1/26/2010 |
|
|
|
|
|
|
|
|
|