Water Filtration System for Home in Mount Pleasant, SC

The town of Mt. Pleasant S.C. is the second coastal town to reject the tourist tax.

On March 6, 2018, the residents of North Myrtle Beach rejected the proposal for a tourist tax, also known as the tourism development fee. Residents cast votes to determine whether they supported the implementation of a new one percent sales tourist tax known as the TDF.

3,050 out of 3,238 total votes casted no votes, while 188 voted in favor, as per the confirmed results.

Tourist Tax rejected in Mt. Pleasant

One week following the announcement of a new 1% sales tourist tax proposition aimed at generating funds for the development of the region surrounding Patriots Point, Mayor Will Haynie publicly admitted his mistake and abandoned the proposal on December 9th.

At a press conference on December 9th at Memorial Waterfront Park, Haynie assumed complete responsibility for the plan’s shortcomings and negative perception, humbly requesting the forgiveness of the residents.

Mt. Pleasant residents expressed their dissatisfaction and confusion due to the proposed increase in taxes and the potential disturbance of protected land, leading to the subsequent retraction.

Haynie stood alone at the Sweetgrass Pavilion, located under the Arthur Ravenel Jr. Bridge, to declare his decision to retract the proposed local option tourist tax of 1 percent.

The “1% retail sales tax, will NOT be considered and that idea will be dropped — completely… FULL STOP on the retail tax idea,” the mayor said in a statement provided to media.

Mount Pleasant Councilman John Iacofano said the 1 percent retail sales tax should have been put to the voters via ballot referendum, as it was done in North Myrtle Beach in 2018.

Haynie expressed disapproval of implementing the 1 percent retail tax, stating it was a bad idea.

“It won’t see the light of day,” Haynie said.

“I think we have some healing to do, and I don’t think it’s over with an apology. I think that we’ve got some proactive work to do,” said John Iacofano, Mt. Pleasant City Councilman.

“I think that the citizens of Mount Pleasant were clearly taken aback by the whole process, or lack of process, for how this was rolled out,” Mt. Pleasant City Councilwoman Guang Ming Whitley said.

MYRTLE BEACH TOURIST TAX is the only one in S.C.

The Tourist Tax was enacted in 2008 through a city council vote led by then Mayor John Rhodes and the Myrtle Beach City Council. However, it was not subjected to a voter referendum.

The 1% sales option tourist tax contributes $24.5 million annually to the revenue collected by the City of Myrtle Beach.

The Myrtle Beach Area Chamber of Commerce receives 80% of these funds specifically for out-of-market advertising purposes.

If Mount Pleasant's proposed tourism development fee moves forward, it would push the town's sales tax rate to the highest in South Carolina.

Since the announcement of the 1 percent retail tax, residents have raised questions about what is and isn't included, along with lack of transparency and other concerns.

Town officials plan to use the estimated $17 million to be collected the first year for several big projects at Patriots Point, including funding the National Medal of Honor Center for Leadership, plus a convention center and more than $100 million in public infrastructure improvements also at Patriots Point.

Those additions will include a new town-owned, 1,000-space parking garage, an expansion of the waterfront boardwalk, new turf for the town's soccer fields and improvements to the College of Charleston's soccer stadium.

A 1 percent retail sales tax was originally established by state law in 2008 in order to fund out-of-market advertising to bring in more tourists. At the time, Myrtle Beach was the only municipality that passed such a tax. Mount Pleasant could be the second.

What exactly would the fee apply to?

It applies to most retail sales within the town, excluding groceries and other specified categories. Examples of taxable purchases include clothing and accessories, electronics and appliances, furniture and general retail items sold in stores.

It does extend to restaurant and dining purchases, including meals, beverages and other food and drink items.

What kind of purchase categories would be excluded?

Exclusions include essential categories like groceries, prescription medications, medical supplies, utilities and large-ticket items with capped tax rates, like vehicles.

What can the money be spent on?

The revenue is earmarked specifically for promoting tourism and hospitality, funding infrastructure improvements tied to tourism and offering property tax rebates to residents.

Unlike a general sales tax, the funds cannot be used for unrelated town expenses.

What is the backstory?

It's unclear exactly when discussions on the tax started.

The town states the idea was proposed as a tool to capitalize on Mount Pleasant’s growing tourism economy. Mayor Will Haynie said during the Dec. 2 special town council meeting where the idea was revealed that it was a sustainable way to fund critical infrastructure improvements at Patriots Point, support projects like the National Medal of Honor Center for Leadership, expand recreational facilities and improve waterfront access.

By law, the tax may only be imposed by a municipality located in a county where revenue from the state A​ccommodations Tax​ is at least $14 million in a fiscal year, according to state law.

Was there community input?

The Dec. 2 special meeting was the first public meeting where the fee had been discussed, followed by a press conference that detailed how the money could be spent.

It was somewhat of an unusual process for the town, with no advance public campaign on the matter, an unlinked ordinance on the agenda and a delay in a public news release.

Per state law, a second reading and vote are required to finalize the ordinance. The town expects it to be held in early January, at which time residents can speak during public comment.

To be adopted, the ordinance needs a supermajority of council or a referendum.

How does the tax work?

Estimations are based on the town's gross taxable sales in 2023, which amounted to $3.18 billion with net taxable sales totaling $1.808 billion, according to the South Carolina Department of Revenue. In the first year, more than $17 million is expected to be collected through the tax.

The 1 percent fee, if approved, would be added to consumer's retail bill. The retailer collects the tax and remits the total to the S.C. Department of Revenue. The state distributes the funds to Explore Charleston, which allocates funds to the town and designated organizations.

What kind of tax break do residents get?

A portion of what is collected would be set aside for property tax rebates for Mount Pleasant homeowners in the first year. A resident with a $500,000 home could expect a $38 rebate in the first year. In years 2-10, only owner-occupied homes will see an estimated $45 credit, for example.

While the property tax rebate is a direct way to target a portion of Mount Pleasant residents for relief to offset the burden of the additional tax, there is no framework in the state law to provide relief for other residents, like renters.

MOUNT PLEASANT, S.C. (WCSC) - Mount Pleasant leaders approved the first of two readings to establish the Patriots Point planned development and impose a local tourism development fee on retail to fund major projects in the development.

The tourism development fee is a local tax on retail items, but excludes the major categories of groceries, gas and prescriptions, among a few others. After two years in place, the fee will return some of the collected money to residents in the form of homeowner rebates. The other item the council approved at first reading would establish the Patriots Point Planned Development district.

Mayor Will Haynie says the $100 million for infrastructure they expect to collect over 10 years is crucial to the area reaching its full potential.

“Our Comprehensive Plan and our Economic Development Strategic Plan both direct council, and have for years, to develop it, to make it an economic generator that takes the tax burden off the citizens of the town of Mount Pleasant. By funding this tourism development fee, we get money from tourists. We give our residents a rebate. And in effect, the things that get built there for the people of Mount Pleasant are funded in large part by tourism dollars,” Haynie says.

The projected revenue from the fee will go in part toward building the National Medal of Honor Center for Leadership, something the town has already committed $3 million to. On the second floor of the facility will be the Mount Pleasant Fine Arts Gallery.

“Yes, it will have a patriotic theme but can have other traveling exhibits. This will be our first major arts facility in the town of Mount Pleasant, and it’s a great place to have it because it’s so accessible. A waterfront promenade that goes all the way around to Shem Creek will be there, completing the trail that’s there now at Ferry Wharf,” Haynie says.

Money will also provide an expected $100 million in infrastructure like a 1,000-space parking garage, a waterfront promenade, turf on the town soccer fields and improvements to the College of Charleston soccer stadium.

“If you’ve been there on a Friday or Saturday, it’s bad, or when there’s a party at the Point, it’s not sustainable, and we will own that. And the people of Mount Pleasant will not have to pay when they are there for a Mount Pleasant recreation event. And then the other thing that we get out of all of this is that the whole development there is going to generate about $25 million a year in new tax revenue for the town of Mount Pleasant. That is $25 million a year that does not have to come from our residents’ property taxes in the future,” Haynie says.

Haynie boasts that Mount Pleasant is already the lowest property tax-wise of all the major municipalities and says this is how they will stay that way. Mount Pleasant also finished a nearly $10 million road improvement project at the intersection that enters Patriots Point in the fall of 2024, setting the stage for a big future.

“The whole idea behind what’s being developed there now Patriot annex, which has always been the plan for Patriots Point since the Yorktown got there, is to support the ships that are there, and its mission to give people a patriotic experience and the uniqueness of America. You add on top of that, the Medal of Honor Museum and the Center for Leadership, which will have nationwide reach, we’re going to build that tourism around that patriotic theme, and it’s going to be an economic generator for the town of Mount Pleasant that lessens tax burdens on our citizens,” Haynie says.

The 1% fee will go before the council again in January. At its first reading, the council unanimously supported it. Patriots Point Development Authority, the National Medal of Honor Center for Leadership, Explore Charleston, the College of Charleston and Charleston Battery all showed public support at first reading.

“Even if it passes a second reading in January, it will not go into effect until certain conditions are met. And then there’s a 60-day waiting period after we notify the State Department of Revenue, so you’re looking at the middle to the third quarter of next year before it goes into effect,” Haynie says.

Copyright 2024 WCSC. All rights reserved.

A forthcoming pool club at 1305 Erckmann Drive in the Old Village section of Mount Pleasant has many area homeowners on edge about increased traffic along the narrow roadway.

Projected to open in early 2026, the Erckmann Pool Club was formally approved by Mount Pleasant's Design and Review Board (DRB) in late October, as the developers heralded the community benefits of their business. In particular, they noted how it could serve as a convenient gathering venue for local youngsters.

Several neighbors residing around the Erckmann Drive/King Street intersection begged to differ during the Dec. 2 Mount Pleasant Transportation Committee meeting, including Carolina One realtor Suzie Smith.

The nearly 20-year Erckmann Drive resident cited issues with the considerable foot traffic (i.e. cyclists, children, pedestrians) forced to negotiate high levels of vehicles speeding down the cut-through with no traffic calming devices in sight.

As a possible safety measure, Smith suggested the addition of speed humps, speed bumps, stop signs or new sidewalks in light of cars and 18 wheelers barreling down the artery connecting Coleman Boulevard with McCants Drive.

Smith recounted standing by her window between 7:14 and 8:15 a.m. earlier that morning and counting 45 cars that drove down her block. While another resident, who asked to remain anonymous, reported recently seeing a little girl riding her bicycle nearly get run over by a large truck.

On that note, Smith later informed the Moultrie News of witnessing two cars crossing in opposite directions, forcing one of the vehicles to stop to let the other pass through.

Mike Tinkey also weighed in by pointing to the importance of a four-way stop sign at the Erckmann/King intersection. He further cited a zoning issue by stating how the Town noise ordinance defaults to a decibel level requirement that's too low for the residential neighborhood.

In analyzing the intersection, Engineering & Development Services Deputy Director James Aton detailed that King Street — which does have a stop sign — sees about 400 cars pass through daily. Erckmann Drive, conversely, registers a volume of 1,000 cars traveling through the approach. Additionally, Aton shared that multiple speed applications for speed humps on Erckmann Drive were summarily rejected in past years.

Two attempts in 2014 and 2022, he specified, failed to meet speed thresholds outlined in the Town's traffic calming program.

Another hurdle that was addressed by staff and council is the fact that Erckmann Drive is a state roadway. Obtaining a necessary encroaching permit for the installation of a four-way stop sign, per Aton, would be highly unlikely.

"That is a volume-based criteria. Obviously, as things develop around here, [we] will continue to investigate that and make appropriate recommendations and requests to DOT," said Aton.

In lieu of placing a four-way stop sign at the intersection, Mayor Will Haynie, suggested removing the stop sign from King Street and moving it to Erckmann Drive.

"That might solve the problem because, you know, one good takeaway from today is Erckmann is a through street all the way with no calming. And that's one way to slow it down," he advised.

Aton responded that if the road in question is eligible for traffic calming, his department would be glad to submit the request in the summer of 2025. All of this would necessitate some further speed studies and processes laid out in the aforementioned traffic calming program.

One possible remedy offered by Engineering & Development Services Director Brad Morrison is to use a radar feedback apparatus along Erckmann Drive, which the Town can implement without state approval.

On the subject of ushering in other safety measures in the form of crosswalks or sidewalks, Aton maintained that his team will look into those possibilities. The sticking point, he reminded, is that nothing gets added without the state signing off on it.

Aton promised committee members that more studies would take place on several portions of Erckmann Drive to assess if any meet the speed threshold to secure a stop approach.

In responding to Councilmember Howard Chapman, Planning Director Michele Reed confirmed that sidewalks would by law need to be installed at the property borders of the new construction.

What's more, Chapman asked Aton and Morrison to consider the option of a traffic circle on Erckmann Drive to slow the flow of traffic. While Morrison conceded that there's ample space for a roundabout in that area, he estimated a $2 million price tag for that kind of project.

Chapman, himself a registered engineer in Florida and South Carolina, voiced his objections to a four-way stop sign, noting that it only causes drivers to speed even more once they move past it.

The transportation committee voted to kick off a traffic study on Erckmann Drive and along its intersection with King Street, which will probably be completed during the month of January.

Two of the four investors in attendance, Trey Lucy and Brian Collie, communicated their willingness to work with council on the implementation of safety-enhancing traffic devices.

In the aftermath of the session, several homeowners continued the conversation on the impact of the Erckmann Pool Club in the Town Hall parking lot. They acknowledged that while the investors were able to secure an approval from the DRB, the proposed undertaking is still subject to transportation and stormwater reviews.

On the latter, Smith apprised the Moultrie News that the planned removal of trees in her area would negatively affect rampant flooding conditions on Erckmann Drive.

One homeowner, who identified himself as Oliver, claimed that a recent two-hour rain event led to five inches of water accumulating in his driveway.

"It's an area that's flooding heavily already to the point that we can't even get off the end of our streets during a rainstorm," said Smith.

#ErckmannDrive #OldVillage #ColemanBoulevard #McCantsDrive #TreyLucy #BrianCollie #MayorWillHaynie #HowardChapman #MountPleasanttraffic #MountPleasantNews #ErckmannPoolClub