COLUMBIA, S.C. (AP) - The South Carolina Supreme Court has ruled against Myrtle Beach in how the city distributed $300,000 in accommodations tax money.
The justices said Wednesday the city improperly put the money into its general fund and then used it to cover tourism-related public services. The money was only a fraction of the more than $6 million the city received in bed tax revenues in the 2008-09 fiscal year.
The statewide Tourism Expenditure Review Committee had challenged four grants covered by the $300,000 but a state administrative law judge ruled for the city.
The justices reversed that decision in a 3-2 ruling, saying technically the law had not been followed. But the majority said they recognized the challenged grants were for tourism services as required by law.