SECTION 6-1-530.
Use Of Revenue From Local Accommodations Tax.
SECTION 6-1-530. Use of revenue from local accommodations tax.
(A) The revenue generated by the local accommodations tax must be used exclusively for the following purposes:
(1) tourism-related buildings including, but not limited to, civic centers, coliseums, and aquariums;
(2) tourism-related cultural, recreational, or historic facilities;
(3) beach access, renourishment, or other tourism-related lands and water access;
(4) highways, roads, streets, and bridges providing access to tourist destinations;
(5) advertisements and promotions related to tourism development; or
(6) water and sewer infrastructure to serve tourism-related demand.
(B)(1) In a county in which at least nine hundred thousand dollars in accommodations taxes is collected annually pursuant to Section 12-36-920, the revenues of the local accommodations tax authorized in this article may also be used for the operation and maintenance of those items provided in (A)(1) through (6) including police, fire protection, emergency medical services, and emergency-preparedness operations directly attendant to those facilities.
(2) In a county in which less than nine hundred thousand dollars in accommodations taxes is collected annually pursuant to Section 12-36-920, an amount not to exceed fifty percent of the revenue in the preceding fiscal year of the local accommodations tax authorized pursuant to this article may be used for the additional purposes provided in item (1) of this subsection.
HISTORY: 1997 Act No. 138, Section 8; 1999 Act No. 93, Section 13; 2002 Act No. 312, Section 1; 2006 Act No. 314, Section 1, eff June 1, 2006; 2010 Act No. 290, Section 35, eff January 1, 2011.
Effect of Amendment
The 2006 amendment, in subsection (B), designated subparagraph (1) and added subparagraph (2).
The 2010 amendment, in paragraph (B)(2), substituted "fifty" for "twenty".
MEMO:
SC Code of Laws §6-1-530 gives municipalities and counties a practical, legally grounded tool to grow local tourism and strengthen community infrastructure: local hospitality sales taxes. Municipalities may levy up to 2% and counties up to 1%, with a combined cap of 2% between city and county—allowing flexible local partnership while protecting taxpayers from excessive combined rates.
Why this matters now
Predictable, locally controlled revenue stream: Communities can fund projects that directly support visitor growth without relying on unstable state or federal grants.
Targeted investment: Law requires funds be used only for tourism-supporting purposes, ensuring accountability and visible returns for residents and visitors alike.
High-impact uses The statute limits spending to six focused categories that together create a complete tourism ecosystem:
Tourism-related buildings — civic centers, coliseums, aquariums and similar venues that attract large events and increase overnight stays.
Cultural, recreational, and historic facilities — museums, performing arts spaces, parks, and preserved sites that boost cultural tourism.
Beach access, renourishment, and tourism-related lands/water access — essential for coastal destinations to remain safe, attractive, and accessible.
Transportation access — highways, roads, streets, and bridges that connect visitors to attractions and improve reliability for local businesses.
Marketing and promotion — strategic advertising and event promotion to increase visitation and lodging tax receipts.
Water and sewer infrastructure — critical utilities sized to meet tourism demand and support new development.
A strategic pitch for local leaders
Short-term: Use the tax to fund targeted marketing campaigns and immediate improvements to beach access or event facilities to increase overnight stays within a 12–18 month horizon.
Mid-term: Invest in transportation and utility capacity upgrades to enable larger events and new tourism development, increasing lodging tax revenues sustainably.
Long-term: Build or renovate signature tourism venues that anchor the regional brand and attract recurring conventions and cultural events.
Recommended next steps
Convene a city-county task force to model revenue scenarios at varying tax rates (up to the legal cap) and estimate economic impact across the six eligible categories.
Prioritize projects that maximize overnight stays and private investment leverage—facilities and infrastructure that directly convert into more visitors and longer stays.
Create transparent governance and reporting mechanisms so residents see how hospitality tax dollars are spent and measure outcomes (visitor numbers, lodging tax growth, jobs created).
Launch a focused promotional plan timed to completed improvements to capture immediate increases in visitation.
Using SC Code of Laws §6-1-530, communities can responsibly capture local tourism growth, invest in the facilities and infrastructure visitors value, and generate measurable economic returns—while maintaining taxpayer protections through the combined 2% cap and clear, tourism-focused spending rules.