Myrtle Beach City Council voted on Nov. 10, 2026 to approve a memorandum of understanding with the Greater Myrtle Beach Collaborative that would seek to change the distribution of the city’s Tourism Development Fee (TDF). The proposal would shift the current 80%‑20% split—mandated by state law—to a 60%‑40% split, giving the city a larger share of the revenue.
According to WPDE, the TDF is a 1% sales tax collected on purchases made within Myrtle Beach city limits. Under the existing arrangement, 80% of the fee goes to the Collaborative for advertising and promotion aimed at attracting out‑of‑state visitors, while the city retains the remaining 20% for property‑tax credits for qualifying owner‑occupied homes.
The new agreement, reported by WMBF, would allocate 40% of the TDF to the city, with that share divided evenly: half would continue to fund property‑tax credits for permanent Myrtle Beach residents, and the other half would be earmarked for tourism‑related capital projects such as improvements to existing attractions or the development of new ones designed to lengthen visitor stays and support the local economy.
City spokesperson Meredith Denari told WPDE that the proposal “would divide the city’s share equally between property tax credits for permanent Myrtle Beach residents and tourism‑related capital projects.” She emphasized that the city currently uses its entire 20% share for tax credits, leaving no money for capital improvements.
WMBF noted that the TDF generated about $45 million last year. MyrtleBeachNews.com cited a figure of $45.5 million for 2025, highlighting a slight discrepancy in reported revenue. Both sources agree that the current split is set by state law, so any change requires legislative action.
The memorandum does not immediately alter the distribution; the existing 80‑20 split will remain in effect until the South Carolina General Assembly amends the Local Option Tourism Development Fee Act. The next legislative window opens on Dec. 10, 2026, for Senate pre‑filing and Dec. 16, 2026, for House pre‑filing, according to the MyrtleBeachNews.com press release.
State lawmakers from Horry County are expected to carry the bill, and any amendment would apply to all eligible cities in Horry, Charleston, and Beaufort counties, not just Myrtle Beach. City officials anticipate that even if the split changes, the homeowner credit would stay near the current 53.4% level, while the new capital half would fund tourism projects.
**What’s next:** The city and the Collaborative will lobby state legislators during the 2027 session. Residents should watch for updates as the bill moves through the Senate and House, with a potential vote before the current TDF term expires in 2029.
Sources: myrtlebeachnews.com, wpde.com, wmbfnews.com, wmbfnews.com, wmbfnews.com
