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Residents and downtown businesses split over proposed 1% hospitality tax increase
Summary
At a July 27 special meeting, more than a dozen residents, business owners and nonprofit leaders testified in favor of and against raising Aiken's local hospitality tax by 1 percentage point (toward the 2% state cap), citing needs for parks, a proposed parking garage and concerns about burdening seniors and restaurants.
Aiken residents and business owners filled the podium July 27 to weigh in on a proposed 1 percentage-point increase to the city's hospitality tax. City staff told the council the local statute caps the hospitality tax at 2%, the city currently collects 1%, and the additional penny would fund parks, entryways and a proposed parking garage; staff estimated the garage cost would not exceed $10.5 million and said roughly two-thirds of new proceeds would be allocated to parks and related capital work.
"Why is it that with the huge influx of people...we're needing or wanting to add a 1% hospitality tax? Where is the money going?" asked Sandra Ford, an Aiken resident opposing the increase. Several small-business owners, including bakery owner Clarissa Cool, raised similar concerns about the burden on local restaurants and retail. Cool said she and a neighboring business collected more than 550 petition signatures objecting to the increase and asked for "full and transparent public accounting of the current revenue expenditures and remaining balances."
Proponents argued the levy would create stable funding for parks and recreation projects and sports tourism that bring visitors and hotel stays. "Investments in quality recreational facilities not only enhance the experience of our local families, but it also positions Aiken to attract larger tournaments and sporting events that create lasting economic benefits," said Walter Clifford of Aiken Football Club, who urged council to back the increase.
City staff answered technical questions about what purchases would be taxed: prepared foods sold at quick shops, grocery delis and food trucks would be subject to the hospitality tax, while prepackaged grocery items would not. Staff also described financing options for a parking garage, saying payback through borrowing could range from 10 to 20 years depending on terms.
The council did not take a final vote on the tax at the special meeting; the item has had prior readings and staff said a second reading may be scheduled at a future meeting. Councilmembers and staff told speakers they would include post-publication comments in the meeting minutes and would provide further budget breakouts at an upcoming August meeting.
