(A)

1. (1) Except as provided in item (2) of this subsection, all revenues and interest of the fee must be used exclusively for tourism advertisement and promotion directed at non-South Carolina residents.
2. (2) Revenues received in the third and subsequent years of imposition must be used as provided in item (1) except that up to twenty percent may be used for property tax rollbacks on owner-occupied real property or tourism-related capital projects, or a combination of these purposes, but no less than twenty percent of these funds must be used for property tax rollback on owner-occupied property. No capital project is eligible to be funded directly or indirectly with fee revenues unless the project consists of construction of new or renovation of existing tourism-related facilities intended to grow or maintain the overnight tourism market in the city.

(B) The municipality shall designate no more than two organizations within the county to receive the revenues and interest and conduct the promotional activities provided pursuant to subsection (A)(1). These organizations must be nonprofit destination marketing organizations representing a broad cross-section of tourism interests within the county. In addition, before an organization may be designated, it must certify to the imposing municipality that:

1. (1) its promotional and advertising programs are based on research based outcomes;
2. (2) the organization has a proven record of success in creating new and repeat visitation to the county;
3. (3) it has sufficient resources to create, plan, implement, and measure the marketing program generated by the fee revenues;
4. (4) it will use the funds only for the purposes provided pursuant to subsection (B)(1) of this section.