---
title: "Myrtle Beach Seeks Larger Share of Tourism Development Fee"
url: https://www.heremyrtlebeach.com/2026/09/04/myrtle-beach-tourism-development-fee-share/
date: 2026-09-04T11:34:20+00:00
modified: 2026-09-04T11:34:20+00:00
author: "Ramiro Ibarra"
categories: ["News"]
site: "HERE Myrtle Beach"
attribution: "HERE Myrtle Beach"
---

# Myrtle Beach Seeks Larger Share of Tourism Development Fee

*Source: [HERE Myrtle Beach](https://www.heremyrtlebeach.com/2026/09/04/myrtle-beach-tourism-development-fee-share/) — September 4, 2026 by Ramiro Ibarra*

Myrtle Beach city leaders are pursuing a greater portion of the annual funds generated by a one percent sales tax, known as the Tourism Development Fee (TDF), to support tourism-related initiatives. The Myrtle Beach City Council discussed the TDF during a workshop on Tuesday, September 1.

Established in 2009, the TDF is a one percent sales tax applied to purchases, including accommodations, within the City of Myrtle Beach. South Carolina law mandates that 80 percent of these funds be used for tourism advertising and promotion targeting non-South Carolina residents. The remaining 20 percent can be allocated to property tax credits or capital improvement projects related to tourism.

Since its inception, the Myrtle Beach Area Chamber of Commerce has received 80% of the TDF, utilizing these funds to promote the Grand Strand and attract visitors. The city has used its 20% share to provide a tax credit for owner-occupied homes, a credit not extended to second homes or commercial properties.

Myrtle Beach Chief Financial Officer Michelle Shumpert noted that TDF revenue has more than doubled, increasing from $20.5 million in the 2010-2011 fiscal year to $43.25 million in the 2025-2026 fiscal year. This growth has resulted in increased funds for the chamber each year, with the Myrtle Beach Area Chamber of Commerce receiving between $33 million and $36 million annually from the TDF between 2022 and 2026.

While the city’s share of the TDF has grown from $4.1 million in 2011 to $8.65 million this year, the tax credits provided to city residents have increased at a higher rate, from $2.8 million in 2011 to $10.4 million in 2026. Shumpert stated that the city has experienced a deficit in its general fund due to these tax credits for three years, indicating that revenue has not kept pace with the growth in tourism development credits. She emphasized that the current 20 percent revenue is insufficient to cover the tax credits offered to residents, deeming the situation unsustainable.

Additionally, Shumpert highlighted that the city allocates between $56 million and $61 million of its own funds annually for tourism-related operational and capital project costs. Mayor Mark Kruea asserted that the city requires a larger share of the TDF to adequately provide tax credits to residents and increase investments in tourism projects, stating that the current 80-20 split is not effective for the entire community. He mentioned that the city is essentially funding advertising for the entire Grand Strand, which he believes is not entirely fair.

Mayor Kruea indicated that several council members have met with the Myrtle Beach Area Chamber of Commerce to discuss proposing a change to the state legislature in Columbia, aiming for the city to receive 40% of the collected TDF funds. He believes a 60-40 split would offer unique opportunities benefiting everyone and that an agreement can be reached for the entire community’s benefit.

Stuart Butler, President of Visit Myrtle Beach, confirmed the chamber’s agreement to move forward with the proposal. He acknowledged the TDF’s success but recognized the current need to reevaluate it due to the gap in tax credits. Butler noted that while some initially opposed any changes, a unified community voice is essential when approaching the legislature.

Council members also offered opinions on how potential additional funds should be allocated beyond continuing resident tax credits. Mayor Pro Tem Debbie Conner suggested that capital improvement investments should focus on inspirational, transformative projects rather than routine road resurfacing. Councilman Bill McClure concurred on transformative projects but stressed the importance of ongoing city upkeep, as the city’s appearance significantly contributes to its image and encourages repeat visits. Councilman Mike Lowder emphasized that new tourism projects should enhance the city’s brand, focusing on creating novel attractions to draw visitors beyond existing offerings.