In 1984 the South Carolina General Assembly enacted a bill which imposes a 2% tax on all accommodations within the state of South Carolina (the bill was later amended in 1991). The goal of the accommodations tax is to present the state and its counties with an effective means to assist in the development of a strong tourism industry throughout South Carolina. The State Legislature has defined the eligible expenses and funding allocation percentages.
A portion of the collected tax is to be used for activities or projects directly relating to tourism (defined as the Tourism Related Activities Special Fund). These funds are disbursed to local agencies for projects and activities that directly promote tourism in Spartanburg County. In Spartanburg County, the Accommodations Tax Advisory Committee is responsible for making recommendations to County Council on the expenditure of these funds; they rely on an application and interview process as outlined in the Accommodations Tax Guidelines. County Council discusses and approves the final allocation levels.