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COMMITTEE REPORT
March 23, 2005
S. 337
S. Printed 3/23/05--S.
Read the first time January 26, 2005.
To whom was referred a Bill (S. 337) to amend the Code of Laws of South Carolina, 1976, by adding Section 12-37-135 so as to provide that as an alternative to the graduated business-license tax, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, in Section 12-37-135 as contained in SECTION 1, page 1, by striking on line 28 / is not / and inserting / must not be /.
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
REVENUE IMPACT 1/
This bill is not expected to have any impact on state revenues. Local property tax revenues would increase depending on how many counties adopted a business registration administration fee and the amount of the fee charged.
Explanation
This bill allows a county to require a business registration throughout the county and impose an administrative fee not to exceed fifteen dollars. This fee would be an administrative fee and would not be based on business income. Under current law, counties have the authority to levy uniform license taxes on persons and businesses engaged in or intending to engage in a business, occupation, or profession, in whole or in part, within the county but outside the corporate limits of a municipality with some exceptions. This license tax must be graduated according to the gross income of the person or business taxed. This bill would allow a county to levy a business registration administrative fee in an amount not to exceed fifteen dollars. This business registration administrative fee would be administered and enforced in the same manner as the graduated license tax allowed under current law. This business registration administration fee may not be converted into a graduated business license tax. Counties have indicated they would use this fee to enforce current tax collections more effectively. This bill is permissive in nature and counties are not expected to adopt a business registration administrative fee unless it at least maintains or increases their current revenue stream.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-37-135 SO AS TO PROVIDE THAT AS AN ALTERNATIVE TO THE GRADUATED BUSINESS-LICENSE TAX A COUNTY MAY REQUIRE A BUSINESS REGISTRATION THROUGHOUT THE COUNTY FOR AN ADMINISTRATIVE FEE NOT TO EXCEED FIFTEEN DOLLARS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
" Section 12-37-135. A county governing body may require a business registration throughout the entire county area and may impose an administrative fee not to exceed fifteen dollars. The fee is an administrative fee and is not based upon business income. The business registration authorized by this section must be administered and enforced in the same manner as the business-license tax described in Section 4-9-30(12), but must not be converted into a business-license tax as described in that provision. The business registration administrative fee may be billed on any property tax bill and is deemed to be property tax for the purposes of collection if so billed. This registration, if adopted, is in lieu of any business license which is authorized pursuant to Section 4-9-30(12)."
SECTION 2. This act takes effect upon approval by the Governor.
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