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Update on the Hospitality Fee Litigation and Settlement Discussions

On September 4, 2020 in County News

Update on the Hospitality Fee Litigation and Settlement Discussions

This update is provided on behalf of Horry County Government and the City of Myrtle Beach

Conway, South Carolina (September 4, 2020)—After many months and considerable effort, it gives us great pleasure to announce that Horry County Government, the City of Myrtle Beach and all municipalities involved have reached a settlement agreement in principle to resolve the Hospitality Fee litigation.

The settlement provides for a path forward for the continued collection of the fee for the mutual benefit of all parties and the county as a whole. It also provides for equitable distribution of past monies collected and unspent.

The next step in the process will be obtaining preliminary court approval of the settlement. This is scheduled to take place on or before September 16, 2020. Final approval will take place thereafter.

In summary, the agreement among all parties, subject to court approval, provides:

  • That the municipalities retroactively consent to the County’s Hospitality Fee and resumption of collections within those municipalities;
  • That  Hospitality Fee monies collected within the municipalities will be distributed to the municipalities from where they were collected on a monthly basis, minus a one percent administration fee;  
  • That the municipalities agree to repeal any new Hospitality/Accommodations Taxes/Fees that were imposed after January 1, 2019, effective on the date collection of the Hospitality Fee within the municipalities resumes; 
  • That the municipalities may reimpose these new taxes/fees if the County stops collecting the Hospitality Fee in those municipalities at any time in the future;
  • That after deduction for costs, fees, expenses and claims, 50% of what remains of the $19 million (primarily from monies collected within the municipalities between January 1, 2017 and the effective date of the preliminary injunction) is proportionately distributed back to the municipalities from where the Fee was collected; and
  • That distribution of the remaining 50% will be determined by the court. 

For more information, contact:                                   

Mark Kruea, Public Information Officer, City of Myrtle Beach

(843) 918-1014 voice (843) 450-1695 mobile

Kelly Moore, Director of Public Information, Horry County Government

(843) 915-8421 voice (843) 246-8945 mobile




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