First Enron, Now Greenville.

A friend in the Upstate sent me an article from The Greenville News. It says, “Greenville County sets up new tax corporation.”

The Greenville County Tourism Public Facilities Corporation opened for business operated by Greenville County Council Chairman Butch Kirven, Vice Chair Judy Gilstrap and County Administrator Joe Kernell.

According to the article, “The arrangement is part of a sweeping plan to revitalize dilapidated parks, build sports complexes and create nature promenades in the county using a tax designed for tourist improvements that is partly shouldered by visitors.”

In other words, to fund the county’s new parks improvement plan through a two-cent hospitality tax, Greenville County Council created what the council chair calls a “shell corporation” to pay the projects’ bills and deflect any liability from the county.

Oh thank goodness we have another innovative financing plan coming out of Greenville. Haven’t they done enough already with the school construction debacle that burned across the state?

Actually, the parks plan this new “corporation” is supporting flew in the face of state law before it even started.

The overwhelming majority of the projects slated for funding through the proposed hospitality tax do not fall under the established guidelines for hospitality tax uses.

Of the 18 projects in the ordinance’s “Project and Expenditures” listing, it appears that only five may be eligible for hospitality tax funds.

The Children’s Museum and Heritage Green, the Sterling Center, and the Convention and Visitor’s Bureau apply under the state’s hospitality tax laws. Since I have no clue what the “Swamp Rabbit Trail” and “Lake Conestee” are, I’ll give them the benefit of the doubt.

Even conceding that those projects are lawful, that means of the $51 million expected to be raised by the tax, only $12.5 million would be legal.

Under the SC Code of Laws, Section 6-1-730 states that revenue generated by a hospitality tax must be used exclusively for:

• tourism-related buildings including, but not limited to, civic centers, coliseums, and aquariums;
• tourism-related cultural, recreational, or historic facilities;
• beach access and renourishment;
• highways, roads, streets, and bridges providing access to tourist destinations;
• advertisements and promotions related to tourism development; or
• water and sewer infrastructure to serve tourism-related demand.

That means that according to the Code, most of the outlined projects do not fall within this scope.

Park improvements are worthwhile, but the beneficiaries of those improvements are the area’s residents.

I took a look in the history books, and Greenville County held a “Penny for Parks” referendum a few years ago trying to fund the same type efforts. The people voted it down by a landslide. That election was for a 1 cent sales tax increase. This tax is 2 cents and never went before the voters.

Now, not only is Greenville County collecting taxes that don’t pass legal muster, its county council created a self-described “shell corporation” to funnel the money.

It’s as if someone mated John Gotti and Home Gold and came up with this as an offspring.

– Wilson Charles

UPDATE: “Exhibit A” detailing the project listing has already been amended to delete the reference to “Pleasant Ridge.” It will now read “Outdoor Adventure Center.” It will still receive $5,000,000.