Lexington Town Introduces New Accommodations Tax to Benefit Local Services

Lexington Town Introduces New Accommodations Tax to Benefit Local Services

If you’re in Lexington, South Carolina, there’s some big news on the horizon! The town council just kicked off a plan to roll out a new 3% accommodations tax that’ll affect hotel stays within the town. And don’t sweat; it looks like residents won’t have to reach into their own pockets for this one. The council voted unanimously this past Tuesday to get the ball rolling, and they’re set to give it final approval next month.

What’s the Deal with the New Tax?

Here’s the scoop: this accommodations tax comes in as the town finally breaks free from a 25-year agreement that locked local hotels into paying a different fee to fund the Columbia Convention Center. That previous fee? It’s gone now, paving the way for Lexington to implement its very own tax. This is a trend many of the surrounding areas in Lexington County have already followed, including Cayce and West Columbia. These other towns aimed to use their tax revenue to pump up tourism dollars, while Lexington has a slightly different vision in mind.

Turning Tourism Funds into Local Gains

So, what does Lexington plan to do with the money from this new tax? Well, the town is looking to collect about $400,000 annually, and they’ve got their eyes set on some key areas like enhancing essential services and possibly easing the local property tax burden for residents. Imagine enhancing police department funding or initiating some road projects—all thanks to cash flow that comes in from tourists spending time in Lexington.

During a recent council work session, Mayor Hazel Livingston expressed excitement about this revenue stream. “I like this because it can put some money into the police department for others, and it comes from our visitors in the town where we can possibly give a reduction in our millage,” she mentioned. It’s an interesting approach as they move to ensure tax rates stay manageable for local residents while still capitalizing on visitor spending.

Understanding the Two Taxes: Accommodations vs. Hospitality

Now, it’s worth mentioning that this accommodations tax isn’t the same as the hospitality tax Lexington currently has. That hospitality tax, which sits at 2%, applies to meals and beverages so when you’re dining out, you’re already contributing to local efforts like traffic projects. With the new accommodations tax, it’s all about the seven hotels in town and the guests who stay at them. If you’re planning a trip and booking a hotel room, just know this 3% tax will be tacked onto your bill.

Concerns from Local Hotels

Before getting too cozy with this news, some local hotels are raising their eyebrows. In a recent council meeting, Assistant Town Administrator Stuart Ford shared that he had a chat with six of the local hotels, and they have some mixed feelings. They’re worried they might lose their edge against competitors outside of town, like those in Columbia that also impose accommodations taxes.

Ford noted that hotel representatives appreciated the idea of the tax if it meant boosting tourism, but they also stressed the need for easy compliance with any new regulations that come down the pipeline. “They expressed a desire for us to administer the ordinance very easily and efficiently for them,” Ford explained. It’s clear the town is taking these concerns seriously and looking for ways to make the transition as smooth as possible.

Final Thoughts

In short, Lexington is gearing up for a new financial strategy that’ll see visitors helping out the town while they enjoy all it has to offer. If all goes according to plan, this accommodations tax could just be the ticket to enhancing local services and bringing a bit of relief to hard-working residents. As always, staying informed will be key for both locals and visitors, so keep an eye out for updates in the coming weeks!