Aiken City Council will vote next month whether to approve a 1 percent hospitality tax for the City of Aiken.
The item was not on Council's Monday agenda for reading or discussion, but Council member Reggie Ebner asked that interim City Manager Roger LeDuc clarify a few details regarding the tax.
Ebner asked that tax discussions begin to move forward and said he didn't feel it was "wise to wait until the end of May or early June."
A hospitality tax is a 1 to 2 percent tax on the gross proceeds from the sale of prepared meals, food and beverages. Alcoholic beverages, such as beer or wine, also would be taxed.
If passed, an additional 1 percent would be added onto the total bill of residents or visitors who go out to eat or drink.
Most cities in South Carolina already have a hospitality tax - many of them at 2 cents. For example, less than 30 minutes away, North Augusta has a 1 percent hospitality tax, and Charleston and Columbia charge a 2 percent tax.
Council is in the midst of a public-private partnership with local hotel owner Neel Shah, who is proposing to gut and revitalize Hotel Aiken on Richland Avenue.
Council confirmed last week the City would pay 100 percent of the $2.5 million to $3 million cost for the public parking deck, and Shah would be in charge of the revitalization of Hotel Aiken, which includes an addition onto the back of the building for more hotel rooms.
"The parking lot is a public parking lot; it's to be used by the public, it's not exclusive for the hotel," LeDuc said Monday. "I know we had requests from churches needing another place to park downtown. We've had for decades citizens who also asked for additional parking."
Council member Philip Merry previously shared with Council and staff a breakdown of his hospitality tax proposal.
Merry estimates at least $1.2 million of revenue would come from this tax per year, which then could be turned around and allocated into different areas, including the construction of the downtown parking garage.
More than half of the tax funds would come from individuals living outside of city limits, Merry told the Aiken Standard.
"The definition in South Carolina law for tourism; a tourist is anyone living outside the city limits," LeDuc said. "So anybody in the county of Aiken would be considered a tourist; when they come to the theater, festival here, a ball game, take part in sports, (they are) considered a tourist."
LeDuc will provide Council with two budgets at its next regular meeting - one with the hospitality tax and one without.
The budget with the hospitality tax will include several ways the tax money collected could be used in the City of Aiken.
Council will hold first reading of the ordinance 7 p.m. April 13 in the Municipal Building's Council Chambers, 214 Park Ave.
In other business, Council unanimously voted Monday to allocate local accommodations tax funds to go toward groups promoting tourism-related activities.
The Accommodations Tax Committee met earlier this month to review requests for the funds, and staff estimates the City will receive nearly $290,000 during the fiscal year 2015-2016. The committee initially received total requests of more than $300,000, but only recommended a total of approximately $287,500, with $1,500 be left in a contingency fund.
Because of Council's vote, for example, Aiken's Makin' will receive $9,000 in funds, $21,000 will go toward the Aiken Trials, and $32,500 will go toward the Aiken Bluegrass Festival.
Maayan Schechter is the local government reporter with Aiken Standard. Follow her on Twitter @MaayanSchechter.