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H-Tax: City has spent $566,000

2005-11-21 / Front Page

By LARRY HILLIARD Ledger Staff Writer larry@gaffneyledger.com

This former textile town has a lot to offer — small-town quaintness, a know-your-neighbor attitude and its quick access to bustling I-85.

The tax hatched to help local governments attract more tourism dollars will make the city an even better place to live, city leaders said.

“The hospitality tax is being used to get more tourists here and to improve the quality of life for all the city residents,” said Gaffney Mayor Henry Jolly, a strong proponent of the tax.

The hospitality tax, a 2 percent tax on prepared foods, has generated $1,383,158, or an average of about $700,000 a year, since it was enacted in 2004, city records show.

To date, the city has spent $566,000 of that total, in part, on parks, upkeep of its recreation facilities and the new city hall.

The city paid $164,377 this year to acquire two parcels on College Drive for a passive park and another $200,000 for the new city hall clock tower.

In 2004, the city spent $30,000 to fund the bicentennial celebration and earmarked another $25,000 for its annual appropriation to the county’s Recreation District

The remainder of the money — $63,800 — has been spent on promotions, such as magazine advertisements and brochures.

“The tax enables us to do the things that in time will improve the quality of life in general and help our efforts to attract visitors to our area,” Gaffney Administrator James Taylor said.

State law puts restrictions on how local governments can spend the revenue.

The Legislature requires cities to spend the revenue on tourism-related items, promotions and on cultural facilities designed to attract tourists. The money can also pay for public improvements to spots frequented by tourists. Taylor said the city would risk losing tourism dollars without the tax.

“We need the tax to compete with the other cities who use the tax for similar projects,” he said. “This is a way for us to compete for tourism dollars that are traveling up I-85.”

The city has approved spending another $403,683 of its hospitality tax revenue on future projects, leaving the city with a balance of $413,000 in its coffers, according to city records,

Some of the projects include $15,000 for promotions, $80,000 for a comprehensive park plan and $25,000 to raze the buildings for the passive park on College Drive.

Another $225,000 will be used to pay off the bill for the new city hall clock and bell.

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