Aiken City staff outline proposal to raise hospitality tax to fund parks, downtown projects and parking

Aiken City staff on Tuesday outlined a proposal for the city council to consider raising the city's hospitality tax by one percentage point, a change officials said could generate an estimated $2.4 million for parks, downtown beautification and a potential downtown parking deck.

The city currently collects a 1% hospitality tax on prepared food and beverages, "and the council is considering increasing this tax by an additional 1% as allowed by state law," the staff member said. The presentation noted the increase would apply only to prepared foods, not groceries, and observed that many South Carolina cities already charge 2%.

The staff member said the additional revenue "estimated at nearly $2.4 million would provide funding for community priorities." Examples given for potential uses included updated and expanded downtown Christmas decorations and the "Christmas in Hoplands" program, construction of a free public parking deck in downtown Aiken, and playground replacements at Governor Aken Park and Kennedy Colony.

Officials also identified facility improvements from the PRT master plan that could be eligible for funding, mentioning enhancements to Odell Week's Activity Center, Citizens Park and Beverly D. Klyburn Generations Park.

The presentation included an example referencing a $50 restaurant bill, but the transcript did not make clear the exact dollar impact of that example; the staff member's slides or materials were not supplied in the transcript. The staff member emphasized that specific projects and expenditures would be selected and approved by the Aiken City Council in public meetings, allowing for resident input.

No vote or formal council action was recorded in the transcript. The council's schedule for any formal proposal, public hearing or vote was not specified in the presentation.