SC Justices Nix Myrtle Beach Accommodations Tax Grants

Law360, Washington (February 5, 2014, 5:20 PM EST) -- The South Carolina Supreme Court on Wednesday ruled that the city of Myrtle Beach, S.C., violated state tax law and inappropriately distributed $300,000 in accommodations tax funds, saying the city needed to submit the grants to a review committee before doling out the funds.

In a 3-2 split vote, the state high court issued a narrow ruling saying municipalities cannot "sweep" a certain portion of their accommodation tax revenues into city general funds, and instead they must be placed in a special, restricted fund for promoting...
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