(A) Purpose.
The Accommodations Tax Advisory Board shall make recommendations to City Council on, and establish guidelines for, the granting of 65% of the state accommodations funds, also called discretionary funds, pursuant to S.C. Code § 6-4-10 et seq.
(B) Composition and duties.
(1) The Board shall consist of seven members: four of whom shall represent the hospitality industry, with two of those four being from the lodging sector; one shall represent a cultural organization; and two shall represent the general public. If all applicants are similarly qualified, preference should be given to Folly Beach residents and registered voters.
(2) The Board shall publish in the local newspaper an advertisement stating the guidelines to be used in applying for the funds, the date when the applications are due, and the name and phone numbers of the contact person.
(3) After the applications have been received and reviewed by the Board, the Board shall set a date and time for a meeting to hear testimony from all applicants.
(4) The Board shall submit to the Municipal Clerk within ten days after the hearing its recommendations to City Council.
(5) After filing its recommendations with the Municipal Clerk, the Board shall submit its recommendations to City Council on the granting of discretionary funds.
(C) Meetings. The Accommodations Tax Advisory Board shall meet when necessary to review and make recommendation to Council for the distribution of tax funds no later than September 15 of each year.
(D) Guidelines for distribution of funds.
(1) Sixty-five percent of the accommodations taxes received from the state, plus any interest earned, shall be placed in a special designated account until the time as the funds are distributed. Any funds not distributed for the fiscal year shall be earned over for redirection by ATAX, in addition to the next fiscal year's funds for distribution. If the funds have not been redirected by ATAX 30 days prior to their extinction dates, City Council shall expeditiously direct appropriate expenditure of these funds without ATAX recommendation.
(2) Entities or individuals applying for discretionary funds must either be a nonprofit organization or representing a nonprofit organization. It is not necessary for the applicant to have a 401(3)(c) Internal Revenue status to receive funds, but must be able to prove to the Board, if requested, that it is not a for-profit business.
(3) All requests for funding shall be tourism-related which include the following:
(a) Advertising and promotion of tourism so as to develop and increase tourist attendance through the generation of publicity;
(b) Promotion of the arts and culture;
(c) Construction, maintenance and operation of facilities for civic and cultural activities including construction and maintenance of access and the nearby roads and utilities for the facilities;
(d) Funding for the criminal justice system, law enforcement, fire protection, solid waste collection and health facilities when required to serve tourists and tourist facilities. The expenditure under this section must be for items that would normally not be provided if the city had no tourist activity and the amount of the expenditure must be based on the estimated percentage of costs attributable to tourism.
(e) Public facilities such as restrooms, dressing rooms parks, and parking lots;
(f) Tourist shuttle transportation;
(g) Control and repair of waterfront erosion; and
(h) The operating of visitor information centers.
(4) Under the state statute, in order to qualify as a "tourism-related expenditure" an expenditure must be used to attract or provide for tourists and cannot be used for an item that would normally be provided by the city.
(5) In order to qualify, applicants must provide a 25% match in funds. In-kind labor and contributions can be used toward the match. Proof of the match must be submitted at the time of the submission of the application.
(6) When submitting applications, applicants must provide:
(a) A budget showing revenues and expenditures when submitting their application;
(b) The names of all members of their board, commission or committee when submitting their applications;
(c)
A list of other projects in which they have been involved, i.e., Sea and Sand Festival, Art Show and Competition and the like;
(7) A closing report with actual revenues and expenditures before August 1 of the following year. The report must include a list of items or services showing how funds were spent in one of the following formats: a bank statement with a detailed list of charges; canceled checks; receipts; or other suitable documentation. Future funds must be withheld if reports are not received.
(8) Any violation of the guidelines by the applicant shall result in forfeiture of any funds received and the applicant shall be prohibited from applying for future discretionary funds.
(Ord. 25-17, passed 9-26-17; Am. Ord. 27-19, passed 9-10-19)