Local lawmakers want to require voter approval for tourism-related sales tax

Voters should get a say in whether Beaufort County municipalities impose a sales tax of as much as 1 percent to pay for tourism marketing and tourism-related capital projects, two state lawmakers from the county said Friday.

A bill supported by both the Hilton Head-Bluffton and the Regional Beaufort chambers of commerce would allow municipalities to impose by ordinance a tourism development fee. That means the tax would require approval from local councils, not a majority in a voters' referendum.

The bill would allow municipalities to increase the sales tax rates in their jurisdictions from 7 to 8 percent on most items for as long as 10 years. Exceptions include groceries, gasoline, prescription medication and Internet sales.

The bill also would allow property tax relief, which supporters say would offset the cost of the sales tax increase for property owners.

State Sen. Tom Davis, R-Beaufort, and Rep. Bill Herbkersman, R-Bluffton, both said they want to see language for a referendum added to the bill.

The issue arose during a meeting Friday of the Beaufort County legislative delegation at the University of South Carolina Beaufort's campus in greater Bluffton.

Tom Hatfield of Hilton Head Island spoke against the bill, saying he has talked with hundreds of Beaufort County residents and "not a single person thought it was a good idea." He said voters don't trust elected leaders to make such decisions.

Herbkersman then said he asked Davis to amend the bill -- which already passed the House and referred to the Senate Finance Committee -- so voters can have a say.

Hatfield said he doesn't think voters would support the tax in a referendum.

"Trust me, that's still a waste of time," Hatfield said.

Herbkersman sponsored the bill with Rep. Richard Chalk, R-Hilton Head Island.

Herbkersman has since said he intended to pattern it after similar legislation that passed last year that allows municipalities in Horry County to impose a similar tax by either ordinance or referendum.

After Hatfield's comments, Chalk said he's glad the sales-tax bill has sparked a discussion about how best to use taxes intended to benefit tourism.

"I think that's a very positive thing," Chalk said. "I would encourage that conversation to continue."

Asked about the issue after the meeting, Davis said he plans to amend the bill so municipalities would have to conduct a binding referendum if they seek to activate the tax.

He said he thinks municipalities need "permission from the people" before imposing the tax.

If the tax is necessary, its supporters "ought to be able to make that case and get it approved," Davis said.

He plans to meet with chamber officials soon to better understand tourism marketing and funding.