Council committee approves ATAX recommendations with chamber distribution change

Lexington County council committee members voted to accept the accommodations tax advisory board’s recommendations for fiscal year 2025‑26 as presented, including a modification to the distribution that affects local chambers of commerce.

A staff presenter reviewed a one‑page summary and a recommendation document showing the requested and recommended ATAX allocations. The presenter explained that the statutory rules for accommodations tax (ATAX/“ACE tax”) allow the 30% tourism promotion allocation to be awarded to more than one nonprofit organization if those organizations demonstrate an ongoing tourism promotion program, citing program guidance. Committee members discussed that, historically, the 30% allocation had been provided to a single organization in some years and that changes to distribution rules could be reviewed for next year.

Several council members said the advisory board conducted extensive work and recommended the allocations; one member urged caution about overturning the board’s recommendations at the eleventh hour. A motion to accept the ATAX recommendations as submitted, reflecting the revisions approved by council last week (including the chambers change), was made, seconded by Councilman Cockrell and approved by the committee.

Officials also discussed follow‑up steps: staff suggested providing clearer guidance to the ATAX board next year and possibly printing statutory guidance in advance of the board’s meeting so members have the rules before they consider allocations. One council member requested a full audit of recipients’ expenditures to confirm funds were used for tourism‑related purposes consistent with statute.

What the record shows: the committee voted to approve the ATAX recommendation document as presented; the meeting record notes that the change to chamber distributions and the rest of the board’s recommendations are reflected in the document before members.