Key business group backs a Lexington meal tax

A key business group is supporting adoption of a meal tax in Lexington to pay for three road improvements.

The Greater Lexington Chamber of Commerce sent town leaders a letter over the weekend endorsing the plan to install a two-pennies-on-the-dollar sales tax that’s known as a “hospitality tax.”

“While no citizen or business embraces the idea of a tax increase, the hospitality tax will allow for a majority of those using our roads – town residents and nonresidents alike – to contribute to funding these much-needed improvements,” chamber chairman Marvin Robinson wrote.

Each project chosen “will help our membership better serve their customer base,” he said.

The tax also is palatable because it is limited to slightly more than eight years, Robinson added.

Mayor Steve MacDougall called the endorsement a major plus.

“It’s exciting they recognize the projects we put forward will be beneficial and create an economic impact benefiting business,” he said.

The chamber has more than 1,000 members in the steadily growing town of 20,000 residents and surrounding areas.

If towns or counties enact the tax, the state requires that the revenues be spent on things that attract tourists. Lexington’s tax proponents argue that the three targeted road projects take people to and from Lake Murray, the Lexington County Museum and downtown attractions such as a walking path and a planned amphitheater that will host concerts and other events.

They say the need is pressing, since the state isn’t spending money to build roads or repair deteriorating ones.

The tax awaits final Town Council approval. A vote is set for Sept. 8.

Plans call for collection to start Oct. 1 and end Dec. 31, 2023. But the tax could be renewed for other projects.

The tax would apply to restaurant dining, take-out food, some snacks and festival food.

It is estimated to generate $2 million a year initially, with revenue used to:

▪ Add a traffic circle on Corley Mill Road and a side lane off it near U.S. 378 and I-20.

▪ Install a traffic circle at S.C. 6 and U.S. 378, with new routes into Lexington Middle School.

▪ Make parts of S.C. 6 and Church Street one-way.

Those projects will cost $13.6 million and take four years to finish, officials estimate. Paying for them will take longer, as costs would be spread out.

The tax is unusual in Lexington County – only Cayce has it – but in use for some time in nearby Columbia and Richland County.

Town leaders pledge to end the tax sooner if federal or state aid for the projects unexpectedly becomes available.