COUNCIL REJECTS MORE OVERSIGHT OF RESTAURANT TAX

New tax revenue earmarked for parks, tourism
FROM: THE GREENVILLE (S.C.) NEWS
POSTED WENDESDAY, September 5, 2007

By Ben Szobody

STAFF WRITER
bszobody@greenvillenews.com

County Council ignored the request of conservative activists Tuesday night for more oversight of the way it uses a new restaurant tax to fund parks and tourism improvements, ratifying instead a short
set of "guidelines" drafted by county staff.

Taft Matney, who videotaped the proceedings and said he represented Conservatives in Action, told the council that the group had dropped a lawsuit against the county over the use of its new "hospitality tax" because taxpayers would have paid for the dispute on both sides, through donations to his group and taxpayer-supported county attorneys.

As a compromise, Matney said Councilman Tony Trout proposed a "comprehensive approach" to tracking the tax money, reporting its use and establishing penalties when the rules are breached.

However, Matney said a county staffer told the council's Finance Committee last week that the document was unnecessary because another proposal dealt with the same issues.

Matney said that was "misleading," and that the version on the floor before council Tuesday provided "minimal" oversight.

It filled just over one page.

When asked what Trout's proposal would have done, committee chair Judy Gilstrap told GreenvilleOnline.com Tuesday, "I didn't study it that carefully."

"I just wanted a simple procedure for setting forth how we handle the hospitality tax," Gilstrap said. "The hospitality tax was set up under an ordinance. We don't need another ordinance."

She said the approach mirrors how hotel tax money is handled.

Former council candidate Robert "Butch" Taylor also objected to the use of the money, saying half the parks projects were designed to satisfy council egos instead of real needs.

The council approved the two percent tax on restaurant food -- the biggest new county tax in 13 years -- last year, and it went into effect in April.

It will generate an estimated $6.75 million a year and help fund trails along the
Reedy River, community centers in low-income areas and tourism attractions such as a downtown
cultural district.

No one on council responded to Matney's claims in Tuesday's meeting, although Trout moved to send the matter back to committee to "put some teeth in it."

His motion was defeated with only two audible votes in favor -- his own and that of Lottie Gibson.

Councilman Joe Dill asked for an explanation, but got none.

"What's the issue?" Dill said, but no one responded. "This has been working for a long time. Or is there not an issue? Go ahead then."

He then joined the council majority in approving the guidelines before them.

Trout and Gibson could be heard voting "no."