State ATAX Grants

The Town of Seabrook Island is currently accepting applications from eligible organizations for funding from the Town’s State Accommodations Tax (SATAX) Grant Program.

Estimated Funds Available for FY 2027: $204,750.00
Minimum Grant Amount: N/A
Maximum Grant Amount: N/A
Application Deadline: August 5, 2026 (2:00 PM)
Advisory Committee Meeting: August 19, 2026 (2:00 PM)

For more information about program eligibility, please review the program guidelines below.

Purpose

The State Accommodations Tax (ATAX) Grants Program is intended to support eligible organizations in carrying out Projects that attract or provide for tourists within the Town of Seabrook Island (the “Town”). The program is funded by revenues received from a two percent (2%) tax imposed by the State of South Carolina on the gross proceeds from overnight lodging within the town limits of Seabrook Island.

As used herein, the term “Project” means any program, activity, initiative, or undertaking for which funding from the State ATAX Grants Program is requested or awarded.

Applicant Eligibility

State ATAX Grants may be awarded by the Town to organizations that:

Are recognized as tax-exempt under Section 501(c) of the Internal Revenue Code;
Are established for benevolent, social welfare, scientific, educational, environmental, philanthropic, humane, patriotic, public health, civic, or other eleemosynary purposes, or for the benefit of public safety personnel;
Employ a charitable purpose or appeal as the basis for solicitation; or
Are units of local government created or authorized by the State of South Carolina, including counties, municipalities, school districts, and special purpose districts.

Religious organizations MAY be eligible for grant funding, provided the proposed Project serves a secular (non-religious) public purpose.

Individuals and organizations affiliated with a national, state, or local political party or candidate are NOT eligible for grant funding.

Pursuant to the South Carolina Solicitation of Charitable Funds Act (S.C. Code Ann. Title 33, Chapter 56), charitable organizations that solicit contributions or have contributions solicited on their behalf must register annually with the South Carolina Secretary of State unless exempt. Applicants must provide documentation of their current registration or exemption status with their grant application. This requirement shall not apply when the applicant is a unit of local government.

Project Eligibility

Pursuant to South Carolina law, counties and municipalities are required to use proceeds from the State ATAX to promote tourism and provide for tourists primarily within the geographical areas of the county or municipality from which the taxes are collected.

The expenditure of State ATAX funds must be used to attract or provide for tourists. Expenditures may not be used for items normally provided by the county or municipality unless the county or municipality has a high concentration of tourism activity.

Eligible types of “tourism related expenditures” include:

Advertising and promotion of tourism so as to develop and increase tourist attendance through the generation of publicity;
Promotion of the arts and cultural events;
Construction, maintenance, and operation of facilities for civic and cultural activities including construction and maintenance of access and other nearby roads and utilities for the facilities;
The criminal justice system, law enforcement, fire protection, solid waste collection, and health facilities when required to serve tourists and tourist facilities. This is based on the estimated percentage of costs directly attributed to tourists;
Public facilities such as restrooms, dressing rooms, parks, and parking lots;
Tourist shuttle transportation;
Control and repair of waterfront erosion, including beach renourishment;
Operating visitor information centers; and
Development of workforce housing and programs to promote home ownership.

For detailed information regarding the expenditure of SATAX funds, please refer to the South Carolina Department of Revenue’s official advisory opinion contained in “SC Revenue Ruling #98-22.”

Eligible Projects must take place between January 1, 2027, and December 31, 2027.

All grant funds must advance a legitimate public purpose.

Unless expressly authorized by Town Council, grant funds shall NOT be used for:

Cash, gift cards, and other items of monetary value distributed to participants or attendees, provided, non-cash awards, trophies, and other giveaways of nominal value may be permitted;
Sub-grants or pass-through funding, including redistribution of grant funds to other organizations, individuals, or entities not directly approved by the Town;
Activities that violate federal, state, or local laws, regulations, ordinances, or other Town policies;
Political activities, including support of political parties, candidates, campaigns, or ballot initiatives;
Religious instruction, worship services, or proselytizing, however, faith-based organizations may receive funding for Projects serving a secular public purpose;
Operating deficits or debt repayment, including payment of past-due bills, loans, or financial obligations;
Alcoholic beverages, except as expressly approved as part of a permitted community event in compliance with applicable law;
Personal expenses, including stipends, honoraria, or compensation not directly related to the approved Project or not supported by appropriate documentation;
Travel expenses not directly related to Project implementation within, or providing a direct benefit to, the Town;
Expenses incurred prior to grant approval;
Administrative overhead not reasonably allocable to the approved Project, including general office expenses unrelated to the Project; or
Any other use which is inconsistent with the approved grant application or the terms and conditions of the grant award.

Town Council reserves the right to amend or limit eligibility criteria at any time.

Grant Awards

There is no minimum or maximum grant amount.

Organizations may submit applications for more than one eligible Project.

The total amount of grant funds available each calendar year will be determined by, and shall not exceed, the amount appropriated by Town Council in the annual budget ordinance.

Application

Applications must be submitted to the Town Finance Director during the calendar year in which funds are proposed to be expended. Unless otherwise authorized, applicants shall use the standard application form prescribed by the Town Administrator.

Application acceptance periods, review schedules, and submission deadlines shall be established annually by the Town Administrator and publicly announced by the Town.

Completed applications shall be submitted to:

Town of Seabrook Island
Attn: Finance Director
2001 Seabrook Island Road
Seabrook Island, SC 29455

Review Procedures

The Town Finance Director shall review all grant applications for completeness. Complete applications shall be placed on the agenda for review by the Town’s State ATAX Advisory Committee (the “Committee”).

The Committee shall meet at least once annually to review grant applications and provide funding recommendations to Town Council. In performing these functions, the Committee shall have the authority to:

Establish procedures for reviewing applications;
Request additional information from applicants; and
Recommend modifications necessary to ensure applications conform to grant criteria.

The Committee may recommend approval (in whole or in part) or denial of each grant request. The Committee’s recommendations shall be provided to Town Council no later than September 1st of each calendar year.

A representative of the applicant must attend the Committee meeting (either in person or virtually) during which the application will be considered. Absent extenuating circumstances, failure to attend the Committee meeting shall be deemed a withdrawal of the application.

Town Council retains final authority to approve or deny all grant applications. Grant awards will be made by Town Council during adoption of the annual budget ordinance.

Evaluation Criteria

In reviewing grant applications, the Committee and Town Council shall consider the following criteria:

Public Benefit
Tourism Impact
Alignment with Program Purpose
Organizational Capacity
Project Feasibility and Work Plan
Budget and Cost Effectiveness
Measurable Outcomes
Project Sustainability/Long-Term Impact; and
Compliance and Accountability

Grant Agreement

Upon approval of a grant award by Town Council, each recipient must execute a written grant agreement with the Town prior to the disbursement of any grant funds.

The grant agreement shall set forth the terms and conditions governing the use of grant funds and shall include, at a minimum, the following:

Grant Award Amount: The total amount of funds awarded to the recipient organization.
Project Description and Scope of Work: A summary of the approved Project, including key objectives, deliverables, and timelines.
Authorized Use of Funds: The specific costs and budget categories for which grant funds may be expended, consistent with the approved application and applicable Town policies.
Disbursement Procedures: The process for requesting disbursement of grant funds, including required documentation and applicable deadlines.
Reporting Requirements: Required financial documentation, performance measures, and final reporting obligations.
Compliance Requirements: An obligation to comply with all applicable federal, state, and local laws, Town ordinances, and program guidelines.
Audit and Recordkeeping Provisions: Requirements for maintaining financial records and making such records available to the Town for review or audit upon request.
Indemnification and Liability Provisions: Terms addressing responsibility for claims, damages, or losses arising from the Project.
Termination and Repayment Provisions: Conditions under which the Town may suspend or terminate the agreement and require repayment of grant funds, including misuse of funds or failure to comply with agreement terms.
General Terms and Conditions: Standard contractual provisions as determined by the Town, which may include insurance requirements, non-discrimination provisions, assignment restrictions, and governing law.

No grant funds shall be disbursed by the Town unless the grant agreement has been fully executed by the Mayor and the authorized representative(s) of the recipient.

Failure to execute a grant agreement within 30 days of the award date shall result in forfeiture of the grant funds, unless an extension is approved by vote of Town Council.

Delivery of Grant Funds

Grant recipients shall submit a written request for disbursement to the Town Finance Director. Disbursement requests shall be accompanied by all required documentation, including invoices and/or paid receipts demonstrating the commitment or expenditure of awarded grant funds.

Disbursement requests must be received no later than December 15th of the calendar year in which the grant funds were awarded. Failure to submit a disbursement request by this date may result in forfeiture of any unpaid grant funds.

All disbursement requests shall be reviewed and approved by the Town Administrator prior to payment. Upon approval, the Town Finance Director shall issue payment to the grant recipient.

Any grant funds that remain uncommitted or unexpended at the end of the calendar year shall revert to the Town’s State ATAX Fund.

Reporting Requirements

Grant recipients shall submit a written report describing the purpose(s) for which Town funds were expended and the overall impact of the Project.

The report shall be submitted to the Town Administrator on or before December 31st of the applicable calendar year, on a form provided by the Town Administrator.

At a minimum, the report shall include:

A brief summary of the Project;
A detailed accounting of the expenditure of Town funds; and
A description of the outcomes achieved and the Project’s tourism impact.

The Town Administrator shall distribute copies of all reports to members of the Committee and Town Council as soon as practicable after the conclusion of the calendar year.

More Information

For more information about the State ATAX Grant Program, please contact us by phone at (843) 768-9121 or by email at [email protected].

More Information

Program Guidelines (FY 2027)
Application Form (FY 2027)

FY 2027 Application Deadline:
August 5, 2026 (2:00 PM)

FY 2026 Grants

Alan Fleming Tennis Tournament ($20,000.00)
SIPOA - Charleston Symphony ($14,130.00)
Town of Seabrook Island - Beach Patrol ($140,000.00)
Town of Seabrook Island - Tourism Related Personnel ($83,620.00)

FY 2025 Grants

Alan Fleming Tennis Tournament ($18,000.00)
Town of Seabrook Island - Beach Patrol ($80,000.00)
Town of Seabrook Island - Charleston Symphony ($27,000.00)
Town of Seabrook Island - Tourism Related Personnel ($73,041.00)
Town of Seabrook Island - Special Events ($50,000.00)

FY 2024 Grants

Alan Fleming Tennis Tournament ($15,000.00)
Seabrook Island Birders ($1,500.00)
Seabrook Island Club ($10,000.00)
Seabrook Island Turtle Patrol ($1,000.00)
SIPOA - Charleston Symphony ($10,000.00)
St. Johns Fire District ($10,000.00)
Town of Seabrook Island - Beach Patrol ($80,000.00)
Town of Seabrook Island - Fence Replacement ($100,000.00)
Town of Seabrook Island - Tourism Related Personnel ($75,783.00)
Town of Seabrook Island - Special Events ($41,667.00)

FY 2023 Grants

Alan Fleming Tennis Tournament ($17,000.00)
St. Johns Fire District ($18,500.00)
Town of Seabrook Island - Beach Patrol ($100,000.00)
Town of Seabrook Island - Dolphin Education Program ($10,000.00)
Town of Seabrook Island - Gateway Sign ($5,000.00)
Town of Seabrook Island - Linear Park Enhancements ($200,000.00)
Town of Seabrook Island - Special Events ($40,000.00)
Town of Seabrook Island - Tourism Related Personnel ($72,027.00)

Contact:

Amber Howard
Finance Director
(843) 768-9121
[email protected]