Myrtle Beach sales tax will increase by 1% on Saturday July 31st, 2009. The increase will help the Myrtle beach area Chamber of Commerce market out-of-towners who don’t know about the Grand Strand. This tax increase is said to raise an estimated $14 million to $18 million for advertising and will affect all sales within the city limits except gasoline, groceries, and prescription medication.
Sales Tax:
Prepared food – from 10.5% to 11.5%
Retail items – from 8% to 9%
Guest charges for hotels – from 8% to 9%
Admission tickets – from 7.5% to 8.5%
Mixed liquor drinks – 10.5% – 15.5% to 11.5% – 16.5%
After 2 years the city will get 20% of the money back and that will be used as a tax credit for residential property owners. The money will also be used to fund tourist related projects. Since the Chamber will be receiving the tourist development money, the city will now get to keep the portion of local hospitality fees that it used to give the Chamber, which is about $850,000. The local hospitality fees will now go to pay off bonds of the boardwalk Project. That hospitality fee savings means the city won’t enact a municipal improvement district it had planned for downtown commercial property owners to help pay for the boardwalk, meaning no additional tax levy for them.
