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The new 1 Percent sales tax within Myrtle Beach city limits is now in effect. The tax is still drawing much controversy and former Mayor Mark McBride is now suing the city saying it did not vote legally on passing the tax.
The tax is currently being given to the Chamber of Commerce to help market tourism. The Chamber has taken out loans in advance of the sales tax revenue to advertise the area, which it claims are working as occupancy rates are on the rise. The chamber also says it field about 6,000 phone calls on days ads run (which are out of town) and only about 1,000 of days the ads do not run.
But some hotels and reservation companies we spoke to say have a different point of view saying that while occupancy rates may be up, they have had to drastically reduce room rates in order to get heads in beds, making revenue a far cry from years past.
However, the story does not end there. We spoke to Mark McBride over two weeks ago about his plan to stop the sale tax from going through. We had also learned that he has been tapped to head up a new Chamber of Commerce in the area called the Grand Strand Chamber of Commerce which has now been formed and will start its members drive September 1st.
The new chamber will not seek state or federal funds to operate and promote the area causing some to believe the non-profit organization is nothing more than a coop looking for another way to pull money from tourism businesses.
Hoteliers and rental companies are hunkering down trying to salvage what they can out of 2009 and watching money like a hawk.
The success of the new chamber and the one percent sale tax story is far from over. More to come.
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New 1% Sales Tax in Effect
#1
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Posted 01 August 2009 - 06:07 AM
Raymond - Moderator
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#2
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Posted 03 August 2009 - 05:01 AM
Hotels charge a 11% tourist tax as it is so why would they complain. That's higher than NY's taxes and we are suppose to be one of the most expensive states. Id add more but have to take my son for CT's today and have to be there in an hour.. takes an hour. need to get off this thing and go. Just had to comment on the 11% tax charge. It put me into shock when i saw it! lol
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