Understanding Accommodations Tax and Its Uses
The town gets so many compliments for the awesome events as well as park upgrades. Many of these cannot be accomplished without the use of our Accommodations Tax revenue. Accommodations Tax (ATax) is generated through overnight stays at hotels and other facilities for stays less than 90 days through both the State of South Carolina at two percent and the Town of Bluffton at three percent.
On a monthly basis, the taxes collected are remitted to the state and the town, and the ATax funds are used to promote tourism and enhance the town for tourists through advertising, promotion, and providing facilities and services. The law requires that funds be spent primarily in the geographical areas of the municipality in which the funds were generated.
Permitted uses for state ATax:
- Advertising and Promotion of Tourism
- Arts and Cultural Events
- Facilities for Civic and Cultural Events
- Municipality and County Services
- Public Facilities
- Tourist Transportation
- Waterfront Erosion
- Visitors Centers
Permitted uses for local ATax:
- Tourism-related buildings, including, but not limited to, civic centers, coliseums, and aquariums
- Tourism-related cultural, recreational, or historic facilities
- Beach access, renourishment, or other tourism-related lands and water access
- Highways, roads, streets, bridges, and boat ramps providing access to tourist destinations
- Advertisements and promotions related to tourism development
- Water and sewer infrastructure to serve tourism-related demand
- The operation and maintenance of those items provided in this section, including police, fire protection, emergency medical services, and emergency preparedness operations directly attendant to those facilities.
- Any such other purpose permitted by State law.
There are two tests that must be passed to qualify as a tourism-related expense: Must be used to attract and provide for tourists and cannot be used for an item that would normally be provided by the Town of Bluffton.
The Town of Bluffton has an advisory committee, Accommodations Tax Advisory Committee (ATAC), which is a state requirement due to receiving more than 50 thousand dollars in revenue. ATAC is made up of seven members with at least two representing the hospitality industry, two from the lodging industry, one to represent cultural organizations, and two at-large to review and make recommendations to Town Council on how ATax funds shall be spent. The ATAC meets on a quarterly basis to review applications and recommend any funding to Town Council.
If you are a non-profit and match the above qualifications, then your group can apply for this funding. ATax applications can be found on the Town of Bluffton’s website at townofbluffton.sc.gov/DocumentCenter/View/464/Accommodations-Tax-Application-for-Funds-PDF. Applications are due quarterly by noon on the following days: March 31, June 30, September 30, and December 31.
