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Reasonable restaurant tax hike
EDITORIAL The increase in the city of Charleston's hospitality tax for some restaurants brings the tax in line with the other two major municipalities in the county, and will raise about $800,000 a year for capital projects. It's a solid alternative to the property tax, which otherwise would have to be used. The action will raise the hospitality tax to 2 percent on all restaurants in the city. Previously restaurants that don't serve alcohol were taxed at 1 percent. Like the general sales tax, tourists pay a substantial portion of the hospitality tax. In contrast, residents pay most of the property taxes in the city. Revenue derived from sales taxes have helped keep the city's property tax rate stable. The hospitality tax proceeds will be used first for a full renovation of the Dock Street Theatre, expected to cost $7 million. (Private donations also will be sought.) It will subsequently be used for the restoration of the Battery. The extent of the Battery project is under study, and its cost has not yet been estimated. Revenues from the hospitality and accommodations taxes are used for tourism-related expenses in the city, including operating costs and capital projects. Both the Dock Street Theatre and the Battery are important tourist attractions, although they certainly are enjoyed by local residents as well. Charleston Mayor Joseph P. Riley Jr. says that the city's use of the local option sales tax, accommodations and hospitality taxes has enabled the city to reduce some of its former reliance on the property tax. In a city with a strong tourist economy, the use of the sales tax makes particular sense. The city is steward to many important public attractions in the historic city, and it is responsible for their upkeep. As Councilman Louis Waring said, "When you have a great city like we have, it's going to cost to maintain it. I can't think of a more painless way to do it. Because God knows I don't want any more taxes on my property." Using the accommodations and hospitality
taxes spreads the expense to Charleston's many visitors, reducing the
potential burden on local property owners. |
