Polk County asking state for special occupancy tax district again

COLUMBUS—Polk County is hoping this year will be different and state legislation will approve a special tax district for the county, city of Saluda and town of Tryon to join.

The Polk County Board of Commissioners met Monday and approved a resolution seeking an act to modify their occupancy tax in order to create a joint Tourism Development Authority.

Last year the county, Saluda and Tryon approved an inter-local agreement and resolutions asking for legislation to approve the special district, but the act failed to pass.

The county and two towns agreed last year to join tourism departments, where the county would be allowed to collect 6 percent occupancy tax in the unincorporated areas of the county as well as in Saluda and Tryon. Columbus did not want to join the new authority.

In exchange, the county, Saluda and Tryon approved an inter-local agreement to give the towns 5-percent of each town’s occupancy tax. The towns’ benefit would be collecting 2-percent more in occupancy tax as they currently only collect 3 percent, as well as not having to administer collections of their own tax. If approved, the county will handle all collections of the occupancy tax.

The county’s benefit will be collecting 6 percent of occupancy tax in the unincorporated areas of the county. Currently the county collects 3 percent occupancy tax in the entire county, including in Saluda and Tryon.

Legislation did not approve any occupancy tax bills last year.

Word about the legislation not passing last year came around the same time as the county and towns approved their annual budgets. The local governments all collected their own occupancy tax this fiscal year as normal and hope the new district can be approved for next fiscal year, which will begin July 1.

Saluda only got approval from the state last year to collect its 3 percent of occupancy tax, so approved in October 2018 moving forward with collecting its own for the time being.

County attorney Jana Berg told commissioners she would forward the resolution to Saluda and Tryon and ask that they approve it at their next meetings.

Resolution seeking an act to modify occupancy tax

Editor’s Note: following is the resolution approved this week by the Polk County Board of Commissioners seeking an act to modify the county, city of Saluda and town of Tryon occupancy tax. The state failed to pass the modifications last year, so the county and towns are seeking the same act this year to form a joint tourism development authority.

WHEREAS, Polk County, the City of Saluda and the Town of Tryon have determined it is in the public interest and would be a more effective and efficient use of tax revenues to create a special tax district consisting of the unincorporated areas of Polk County, the part of Saluda located in Polk County, and the municipal limits of the Town of Tryon to promote travel and tourism for tourism related expenditures within the special tax district; and

WHEREAS, Polk County, the City of Saluda and the Town of Tryon have determined to seek authority to levy a room occupancy and tourism development tax of up to 6 percent within the special tax district.

WHEREAS, in furtherance of this effort Polk County, the City of Saluda and the Town of Tryon have agreed to enter into an inter-local agreement to provide for administration of the occupancy tax and to create a Polk County Tourism Development Authority consisting of six members who are either responsible for collecting occupancy taxes or promoting travel and tourism within Polk County, to serve for three year terms with staggered initial terms:

• Three members appointed by the Polk County Board of Commissioners. Original appointments: Position 1-3 years, position 2-3 years, position 3-1 year.
• One member appointed by the Tryon Town Board of Commissioners. Original appointment: Position 4-2 years. Subsequent terms if reappointed: 3 consecutive years.
• One member appointed by the Saluda City Board of Commissioners. Original appointment: Position 5-2 years. Subsequent terms if reappointed: 3 consecutive years.
• One member who shall be the executive director of the tourism development authority who shall be an ex-officio, non-voting member.

Of the members, at least one-third of the members shall be individuals who are affiliated with businesses that collect the tax in the county, and at least one-half of the members shall be individuals who are currently active in the promotion of travel and tourism in the county.

NOW, THEREFORE BE IT RESOLVED that the Polk County Board of Commissioners, the City of Saluda Board of Commissioners and the Town of Tryon Board of Commissioners do hereby request an act to modify the Polk County, Saluda and Tryon occupancy tax to create a special tax district, and to levy an occupancy tax of up to 6 percent within the tax district.