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Chester publishes revised Hospitality Tax grant rules, clarifies eligible uses and application steps
Summary
The City of Chester distributed revised Hospitality Tax Grants Guidelines restating that the 2% hospitality tax may fund tourism-related buildings, cultural and recreational facilities, roads to tourist destinations, advertising, and water/sewer infrastructure; applications require nonprofit status, in‑city projects, and a required five‑minute Council presentation.
The City of Chester included revised Hospitality Tax Grants Guidelines in its Jan. 12 Finance Committee packet that restate allowable uses of the local 2% Hospitality Tax and set application, reporting and reimbursement procedures.
The guidelines cite state law and list permitted uses including tourism-related buildings (civic centers, coliseums), cultural and recreational facilities, beach access and re-nourishment, highways and roads that provide access to tourist destinations, advertising and promotion tied to tourism development, and water/sewer infrastructure serving tourism demand. The packet notes that in counties collecting less than $900,000 annually in accommodations taxes, up to 50% of the prior fiscal year's Hospitality Tax revenue may be used for additional authorized purposes consistent with state law.
To be eligible, applicants must be nonprofit organizations in good standing with the South Carolina Secretary of State and the IRS; funded projects must take place inside Chester corporate limits and be demonstrably tourist-focused. The application requires a firm event date and venue, written venue confirmation, a complete application, and a five-minute oral presentation to City Council at least 60 days prior to the event. Awarded recipients must submit a signed Statement of Assurance, invoices for reimbursement, and a Grant Reporting Form within 30 days after the event; the City reserves the right to audit recipients.
The guidelines specify ineligible expenses, including salaries and payroll, transportation or lodging, food and beverages, and distributed items such as shirts or cups. Reimbursement will be limited to eligible costs and contingent on actual Hospitality Tax revenues received by the City.
The guidelines are presented as administrative rules to ensure statutory compliance and promote tourism-focused spending. The packet does not record Council decisions on particular grant applications; it provides the procedures and criteria that applicants must meet if they seek Hospitality Tax funding.
