Friday’s editorials mark two recent state-level actions, both overdue, that could affect us here on the Grand Strand:
We’ve now mentioned the state’s precipitous budget situation so many times that the drumbeat is at risk of becoming hypnotic and eyes begin to glaze over. But even if we cover our eyes, the train continues to rumble down the track toward us.
In the midst of this crisis came a small victory last week, the state Supreme Court’s ruling that hotel booking websites owe sales tax on the service fees they collect. The decision so far only applies to state taxes, but the ruling will act as a strong precedent in similar cases being pursued by Horry County and Myrtle Beach, cases that could result in thousands or millions of dollars coming back to local coffers at a much-needed time.
North Myrtle Beach recently settled a case against the same companies for close to $200,000. The city and county are now negotiating to reach their own settlements.
But even beyond collecting back taxes, the decision will be a strong incentive for companies such as Expedia or Hotels.com to begin remitting the disputed taxes from this moment forward, bolstering local finances for the future.
On the state level, larger solutions are undoubtedly still needed – at the most the back taxes owed the state total $6.3 million – but small steps provide us continued optimism that we will find ways to climb the mountain ahead.
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