The
following information on taxes will assist
qualified businesses that are considering
relocating or expanding in Oconee County,
South Carolina. Complete information on each
item is available by contacting the Economic
Development Commission at
864-638-4210
State Corporate Income Tax:
Corporate income tax rate is 5.0 percent.
Corporations engaged in multi-state
activities are taxed only on that portion of
income derived from doing business in SC.
The process for determining the taxable
income in SC is based on Allocated Income
and Apportioned Income. Apportioned Income
is based on a three-factor formula that is
weighted as follows: 1) Property Factor
(25%) 2) Payroll Factor (25%) and 3. Sales
Factor (50%). The SC Apportionment formula
is based upon the Uniform Division of Income
for Tax Propose Act (UDITPA), which has been
adopted by the majority of the states. In
addition, SC permits an extended recovery
time for business losses with up to a
15-year carry forward loss period.
Sales & Use Tax: The SC sales & use
tax rate is 5 percent. The sales tax applies
to all retail, leases, and rentals of
tangible personal property, including the
value of property purchased at wholesale and
used or consumed by the purchaser, unless
specifically exempt. The use tax is based on
the sales price of such property. SC
counties can apply an additional 1 to 2
percent local option sales & use tax.
State Intangible Personal Property Tax:
In support of business, SC exempts all
intangible property from local property
taxation.
State & Local Property Taxes: There
is no State tax on real and personal
property. In SC, local government levies
property taxes. A ll property is appraised
at fair market value by the SC Dept. of
Revenue. The fair market value is then
assessed at rates established by the
Constitution. For manufacturers, real and
personal property are both assessed at 10.5
%. The assessment ratio for all other
businesses is 6% for real property and 10.5%
for personal property. The taxes due on each
parcel of property is calculated by
multiplying the fair market value (including
depreciation) by the assessment ratio by the
local millage (1 mill = $0.001) levied by
the taxing authorities within that county.
SC
Business License Fee (Franchise Tax):
All corporations must pay an annual
fee to the SC Department of Revenue. The
rate is one mill per dollar of a proportion
of total paid-in-capital and
paid-in-surplus, plus $15. Earned surplus
(retained earnings) is not included in the
base when calculating the fee. For
corporations doing business outside the
state, the fee is determined by
apportionment – same as the corporate income
tax. The minimum fee is $25.
Local Business License Fees: A
local tax for engaging in certain specified
types of business. Every person
engaged or intending to engage in any
calling, business, occupation or profession
within Oconee County is required to pay an
annual license fee and obtain a business
license.
Note: Only the SC
Dept. of Revenue, local elected councils,
and the SC Coordinating Council for Economic
Development have the authority to offer
definitive tax commitments under SC law.
This information is provided to illustrate
SC’s pro-business environment and to assist
a company in their evaluation of SC.
Incentives :
With regards
to taxation in South Carolina, the State
administers corporate income and sales and
use taxes; the County and Municipalities
control property taxes. South Carolina
incentive legislation provides the ability
for both state and local government to
incent business and industry when new jobs
are created and new investment occurs.
Workforce training and special financing
incentive programs are also available in
South Carolina.
Incentives
from both levels of government take one of
two forms - statutory or negotiated.
Statutory means if requirements are met then
one would automatically qualify. Negotiated
means that an incentive can be offered at
the discretion of the appropriate agency. In
general, statutory incentives are fiscal,
year-end oriented; negotiated incentives are
time-sensitive and usually have a sixty-day
window to capture eligible expenditures.
SC
Tax Rates By County
SC
Tax Rates by County
SC Historic Rehabilitation Incentive Act
Program
Federal Historic Preservation Tax Incentives
