CONWAY, SC (WMBF) - The city of Conway will officially start collecting all of its own hospitality and accommodations tax money starting July 1.
The move that was approved by council Monday night.
“This community has needs and those needs are not free," said council member William Goldfinch.
The hospitality fee is currently collected by Horry County. Conway City Council passed an ordinance that changes that to a hospitality tax, which is collected by the city, and gives them more money to use come July.
“We’re collecting our own tax. We’re not relying on the county to do it and then be responsible for those funds,” said Goldfinch.
The city said currently it receives about $830,000 under the hospitality fee. The new change is expected to generate $1.6 million for the city.
Council also passed an ordinance that affects the local accommodations tax.
“The accommodations tax went from 0.5 to three percent,” said Goldfinch, “We anticipate that would enhance our overall revenues, which is currently only about $15,000 per year.”
The city said it expects the change will allow them to generate between $75,000 to $95,000 each year.
“The mayor and the other six members of council serve the city of Conway and we recognize that we have to do whats in the best interest of Conway,” said Goldfinch.
Goldfinch said council isn’t ready to publicly discuss what they plan to do with the money. He said they are well aware the tax money is specific regarding how the funds can be used.