ATAX committee reviews statutory roles, eligible uses and reporting deadlines

The Hilton Head Town Accommodations Tax Advisory Committee received its annual statutory overview on how state and local accommodations tax (ATAX) revenues are collected, allocated and reviewed.

Presenter summarized that the state levies a mandatory 2% ATAX collected by the South Carolina Department of Revenue and municipalities may impose an additional 3%. The presenter explained the DOR aggregates collections and distributes funds to municipalities and counties. "The state 2% ATAX is collected by the South Carolina DOR," the presenter said, adding that the town also collects a 3% local ATAX.

The presenter reviewed committee composition and duties: municipalities receiving more than $50,000 in state ATAX must appoint an advisory committee; the committee is advisory to town council and must submit written recommendations by January 1 each year. The presenter emphasized that required statutory allocations include a $25,000 baseline allocation to the municipal general fund and percentage splits that determine the marketing and tourism funds available for committee consideration.

Committee members asked procedural questions about public-comment protocol and bonding of tax revenue; the presenter advised not to respond to public comments during the meeting and said they would research whether ATAX revenue can be bonded and report back. The committee received the staff materials that accompany the presentation for reference and follow-up.