Hospitality, accommodations fees back revenue bonds
South Carolina's local governments use hospitality and accommodation tax receipts for capital projects such as parks, museums, visitor centers and tournament facilities. But a gap in the law did not allow bonds to be issued using these receipts as security. Installment sales and lease purchase transactions were the only financial tools available, and using them generally meant higher interest rates and more expensive closings. Some critically necessary projects could not be done at all using these financial vehicles. Pope Zeigler saw the problem that this caused multiple clients.
Margaret Pope and Belton Zeigler, working with the Municipal Association of South Carolina, drafted legislation to allow revenue bonds to be issued using hospitality and accommodations receipts. They worked with the Municipal Association to explain the need for the legislation to the hospitality industry and to key members of the South Carolina Legislature who raised concerns. After a three-year process, the legislation was adopted at the close of the 2009-10 session. New financing transactions are being considered.
Margaret Pope and Belton Zeigler, working with the Municipal Association of South Carolina, drafted legislation to allow revenue bonds to be issued using hospitality and accommodations receipts. They worked with the Municipal Association to explain the need for the legislation to the hospitality industry and to key members of the South Carolina Legislature who raised concerns. After a three-year process, the legislation was adopted at the close of the 2009-10 session. New financing transactions are being considered.