Tuesday, Nov. 03, 2009

Myrtle Beach City Council to review tax report

People will get their first look at how the Myrtle Beach Area Chamber of Commerce is spending the tax revenue raised by a controversial citywide sales tax implemented this summer.

At today's Myrtle Beach City Council meeting, chamber representatives will present their first quarterly update on out-of-market promotion expenses as the council requested.

The update follows the chamber's promise to be transparent with how the money is spent, city spokesman Mark Kruea said.

Though there is no advance information in the council's meeting packets, the chamber said it recently completed its largest-ever fall marketing campaign because of the 1 percent tax on prepared foods, rentals and retail sales inside the city. The chamber released data showing it spent $1.3 million to reach double the number of out-of-market areas to tell people about Myrtle Beach.

"I would say the money has made a difference this year," city Councilwoman Susan Grissom Means said. "I'm very impressed with what I've seen so far."

She said she hasn't seen any preview of the chamber's presentation today, but over the past few weeks has seen examples of some of the ads the chamber has run and other promotional efforts.

"There have definitely been more people on the beach this fall than in years past," she said.

The promotion campaign ran from Aug. 24 through Oct. 18 and focused on online advertising and television ads in 40 markets for eight weeks, including seven with direct flights to Myrtle Beach. Before the tax was implemented, the chamber had far less funding and would have hit 20 to 25 markets with a limited push in September to try to sway last-minute decision makers, Brad Dean, president and CEO of the chamber, said recently.

Nancy Gray, the chamber's media communications manager, said the chamber has not received a check from the S.C. Department of Revenue for the first quarter's tax collections yet, and she didn't know how much the state office has collected so far from the 1 percent tax, but the chamber expects a check in the coming weeks. The chamber borrowed money when it knew the city would approve the sales tax.

The tourism tax is expected to generate between $14 million and $18 million a year, but it has also generated controversy.

The tax is only supposed to affect sales within city limits, but Socastee-area shoppers have, at various places, found themselves paying the tax, too, because stores with corporate headquarters outside the state didn't immediately realize that stores can have Myrtle Beach addresses but be outside city limits.

Also, vocal opponents of the tax or of the city's decision to pass it without a voter referendum have released a series of attacks on the chamber and the council, and several of the candidates in the council race are running on anti-tax platforms.

The council also will tour the new Claire Chapin Epps YMCA building and hold its morning workshop there. The YMCA officially opens Thursday. The city's new dog park, right next door, opened last week.