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LOCAL TAXES:
In South Carolina,
counties are authorized to levy property
taxes on taxable real estate and personal
property. In order to ensure standardized
assessment of all industrial plants, the
South Carolina Tax Commission assesses all
such plants at 10.5% of the appraised value.
Neither the city nor the county in which the
plant is located can change the assessment
established by the Commission. Each county
sets its millage rate and to this rate is
added the rate set by the local municipality
or special service district to arrive at the
total millage rate.
INVENTORY TAXES
AND FLOOR TAXES:
South Carolina has no manufacturer's
inventory taxes. All inventories including
raw materials, goods-in-process, and
finished goods are exempt from taxation,
provided they are not offered or available
for sale at retail. In addition, a
manufacturer's inventory, whether produced
in South Carolina or not, can be stored and
warehoused in South Carolina and not be
subject to inventory taxes.
All merchant's inventory is assessed at 6%.
This is then multiplied by the local millage
rate to obtain the yearly floor tax. The
only exception is a merchant operating a
warehouse who would qualify for an exemption
under a "no-situs" law. All equipment of
merchants is assessed at 10.5%.
SOUTH CAROLINA
TAXES: Tax
rates and tax policies applied to industry
in South Carolina are liberal. South
Carolina has a "no-situs" law exempting all
inventory taxes on goods from warehouse
moving in interstate commerce. These goods
may be assembled, bound, joined, processes,
disassembled, divided, cut, broken in bulk,
labeled, or repackaged and still be entitled
to exemption from inventory taxes. There is
no time limit on how long such goods may be
warehoused.
"No-situs" is but one example of how the
state's taxation policy has helped make
South Carolina one of the most desirable
locations for new business. For instance,
the state has abolished the intangible tax
and the property tax. There is no wholesale
state tax.
CORPORATE
INCOME TAX: The
tax levied on domestic and foreign
corporations is 6% of net taxable income,
but foreign corporations are taxed only on
the income earned or derived within the
state. The portion of income to be taxed is
usually computed by taking the arithmetic
average of the three ratios:
(a) the value of in-state real estate and
tangible personal property to the value of
the firm's entire real estate and tangible
personal property holdings; (b) in-state
payrolls to total payrolls; and (c) in-state
sales to total company sales.
A company may also use separate bookkeeping
if the method used reflects the true
earnings of the firm's South Carolina
operations.
In using the total payroll of a company, the
salaries or compensation of officers with
company-wide authority are omitted in the
numerator and denominator of the ratio.
CORPORATION
LICENSE FEES:
Both foreign and domestic corporations must
pay annual license fees to the South
Carolina Tax Commission on or before the
15th day of the third month after the
preceding year at a rate of 1 mil upon each
dollar of a proportion of its total paid-in
capital and paid-in surplus. Earned surplus
is not included in the base in the
calculation of this tax. The proportion is
determined in the same manner as employed in
computation of the State Income Tax.
DOCUMENTARY
STAMP TAX: On
the issuance of capital stock, the tax is
ten cents for each $100,000 of face value.
If within face value, the tax is one cent
for each $10.00 up to $100.00 actual value,
and ten cents per $100.00 thereafter.
RETAIL SALES
TAX: South
Carolina levies a five percent retail sales
tax. Exemptions from the tax include
production machinery, repair parts,
industrial electricity and materials which
will become an integral part of the finished
product of a manufacturer. Also, any items
which change the physical or chemical
characteristics of a finished product are
exempt. The entire proceeds of this tax are
pledged to the construction and operation of
South Carolina's public schools. Charleston
County adds an additional 1% Sales Tax.
PERSONAL INCOME
TAXES: There
are no municipal income taxes. A state
income tax is imposed upon every individual
residing in South Carolina. The tax levied,
collected and paid annually with respect to
net income of the taxpayer and income earned
within the jurisdiction of the state of
every non-resident having a business and/or
agency in the state from the sale or rental,
or income from property within the state, is
compounded at the following rates:
On the excess over the amount legally
exempted up to $2,070: 2.5%
On the excess above $2,070 and up to $4,140:
3.0%
On the excess above $4,140 and up to $6,210:
4.0%
On the excess above $6,210 and up to $8,280:
5.0%
On the excess above $8,280 and up to
$10,350: 6.0%
On the excess above $10,350: 7.0%
Personal exemptions are $800.00 per person.
Deductions are permitted for the same items
by the Federal Government, except the
deduction for state income tax paid.
However, a deduction for up to $500.00 per
taxpayer for federal income tax paid is
allowed. For those persons over 65, South
Carolina allows a $12,000 homestead
exemption except Berkeley County, which
allows an exemption of $12,500. On a $45,000
home, for example, taxes would be assessed
as though fair market value were $33,000 or
$32,500. This exemption is applicable to any
person who has been classified as totally
and permanently disabled.
Individuals contemplating purchase of
property should contact the proper taxing
officials. This will insure that you obtain
the most current information relating to
your taxes.
ORGANIZATION
AND QUALIFICATION FEES:
This tax is paid only
once by corporations qualifying to do
business in the state. The rate is 40 mils
per each $1000.00 of the aggregate value of
authorized shares, with a minimum fee of
$40.00 and a maximum fee of $1,000.00.
(No-par shares are assigned a value of
$10.00 for the purpose of fee computation.)
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Address:107 West 5th North Street
Summerville SC,29483 |
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