City Council Tables 2% Hospitality Tax

After getting a tongue-lashing from constituents, Goose Creek City Council tabled an ordinance that would enact a 2 percent hospitality tax on prepared food items Tuesday night during its regular meeting.

Council had already motioned and seconded to give first reading to the proposed ordinance but during discussion, Mayor Michael Heitzler asked the motions be withdrawn so council could review the ordinance further.

"We're going to go back and talk about it some more," Heitzler said. 

The proposed 2 percent hospitality tax was to fund improvements around the town geared toward recreation and tourism now that the tax increment financing district has ended. 

Click here to read the full ordinance.

One of the people to bring council to task Tuesday was the owner of the Summerville and Goose Creek Chick-fil-A franchises, Chris Walker.

"I think the city perceives this as free money. It's not. It's a tax on the citizens of Goose Creek," Walker said. He added that if the city would like to raise more revenue, council should make business taxes lower to encourage businesses to operate here. 

Walker told Patch that a 2 percent increase in sales tax on prepared foods would negatively impact his Goose Creek customers. While the Summerville location does $1 million more in sales and already has a 2 percent hospitality sales tax, he said the customer base at Goose Creek are local residents.

It's more neighborhood oriented and not in a high density area, unlike the Summerville location, Walker said.

"Goose Creek is not a tourist destination. The people eating here, live here," he added. 

Walker wasn't alone in his opposition. 

That left council on its heels trying to explain why the new tax was needed.

"The city runs a very tight budget," Councilman Franklin Moore said. "There's no extra money for additional recreation or anything else ... If we want anything, we have to pay for it."

Heitzler said this was the opportunity to help make Goose Creek even better for people of all ages. He said the money would help fund Phase 2 and Phase 3 of the Casey Community Center, and help the intersection at 176 and 17-A with Carnes Crossroads in development. 

"I see this as a new chapter," Heitzler said, adding that 30 years ago council strived to make the city "less ugly," and has progressed since then. "Do we want to step up another step? I see it over a 35 year era, each time we made a step up and no one regretted it."