S.217 – would allow the revenue from local hospitality and accommodations taxes to be used by local governments in the repair and mitigation of flood or tidal damage. The funds could also be used for “site preparation” including demolition, construction, control and repair of flood and drainage in tourism-related areas.

The only strict regulation on the use of the tax revenue is that it cannot be used to settle lawsuits from the harmful impacts of flooding.

This bill has serious private property implications. “Control” of flooding and drainage on tourism-related areas is very broad terminology and would, if this bill passed, allow this tax revenue to fund the taking of private property through eminent domain for flood mitigation projects.

By South Carolina Policy Council

Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.