MYRTLE BEACH, SC (WBTW) – A new tax plan is set to take effect in the City of Myrtle Beach starting on July first, according to a press release.

This comes after a judge denied Horry County’s request for an injunction that would have forced the City of Myrtle Beach to keep paying the county hospitality tax dollars.

The city filed a lawsuit against the county claiming the county had been “illegally collecting tens of millions of dollars per year” through the fee.

That lawsuit is still ongoing.

Starting July 1 for accommodations and short term rentals the entire 3 percent tax will go to the city.

A 2 percent prepared food and drink sales tax will go to the city, a reduction of 0.5 percent for customers.

A 1 percent admissions tax will go to the city, a 1.5 percent reduction to customers.

“You may not notice it at the cash register, but it will be a decrease of a half percent when you buy a restaurant meal, when you buy an admission ticket, it will be a decrease of one and a half percent, and you’ll know that money will be going to Myrtle Beach rather than other purposes in Horry County,” Mark Kruea, city spokesperson said.

Mayor of Myrtle Beach, Brenda Bethune says the city will generate $15 million once the change goes into affect.

Council does not have any specific plans as to how they’ll spend the extra money, but Bethune says it will go towards the betterment of the community.

“It’s very important to us to be very fiscally responsible and to act responsibly in all that we do, so anything that is done in the future with this money or any other monies, we will do so with very careful planning and a lot of thought,” Mayor Bethune said.

Retailers have until August 20 to make their payments for July sales.