WMBFNews.com | Myrtle Beach/Florence, SC | News, Weather, SportsHorry County takes travel sites to court
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HORRY COUNTY, SC (WMBF) – Horry County is one of hundreds of municipalities now suing travel websites like Orbitz, Expedia, and Travelocity. County officials claim these sites and others are not paying the full amount owed on their state and local accommodations taxes.
Each internet travel provider is supposed to pay the state of South Carolina 7 percent of the revenue they earn on each room booked. Another 3 percent of that revenue is supposed to go to the local government.
John Weaver, Horry County's attorney, says he cannot estimate how much money the county is owed, but it is significant.
"Lots and lots of money is being lost to the municipalities and the county government," explained Weaver.
Weaver says the money from the accommodations tax is used for tourist services like additional police, fire, and EMS. He says the money also helps to pay for increase beach patrol during the summer months and advertising.
Nicole Pline-Doty, a revenue manager with the Brittain Resort Group, says hundreds of hotels across the Grand Strand rely on these travel websites to boost their numbers. Pline-Doty estimates that the sites help drive millions of dollars of business to the Grand Strand.
"In the off season, we obviously rely on them quite a bit just because the demand is so low and there are shoppers who just use those as ways of buying a hotel room," explained Pline-Doty.
The city of San Antonio Texas settled the first of several lawsuits now pending against these agencies. The city was awarded more than $20 million, and Weaver believes this is an encouraging sign for Horry County.
"The fact that there have been several lawsuits favorable to the government's position, that gives us reason to believe that we'll be fully compensated in time," said Weaver.
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