A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 4-10-970, RELATING TO USE OF LOCAL OPTION TOURISM DEVELOPMENT FEE REVENUES, SO AS TO PROVIDE THAT UP TO FIFTY PERCENT OF THE AMOUNT RETAINED MAY BE USED BY THE MUNICIPALITY TO PROVIDE A CREDIT AGAINST PROPERTY TAX LIABILITY.
Summary
H5003 amends South Carolina’s local option tourism development fee statute to change how municipalities must use the revenues they retain. Under current law, municipalities that keep a portion of tourism development fee revenue must use at least 20 percent of that retained amount to provide a property tax credit for owner-occupied residential property. This bill increases that minimum to 50 percent, meaning a larger share of retained tourism fee revenue would be directed toward reducing municipal property tax liability for qualifying homeowners.
The bill applies to parcels of owner-occupied residential property classified under the state’s legal residence property tax provisions. It preserves the existing formula for calculating the credit, which is based on the appraised value of eligible residences and the amount of revenue allocated to the credit. The act would take effect upon approval by the Governor.
Impact
The bill would amend Section 4-10-970 of the South Carolina Code of Laws by requiring municipalities to devote up to, and effectively at least, 50 percent of retained local option tourism development fee revenues to property tax credits for owner-occupied homes, replacing the current 20 percent minimum. This would reduce the amount of retained tourism fee revenue available for other municipal uses and increase the share dedicated to residential property tax relief for qualifying homeowners.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text alone, the measure appears aimed at property tax relief and redirecting tourism-related revenue toward local homeowners, which suggests a generally pro-taxpayer purpose.
Contention
The main policy issue is the tradeoff between property tax relief for owner-occupied residences and municipal flexibility in spending tourism development fee revenues. Supporters would likely favor the larger credit for homeowners and the use of tourism-generated funds to offset local property taxes, while opponents may be concerned that increasing the required credit share from 20 percent to 50 percent limits municipal discretion and reduces funds available for other tourism-related or local government purposes.