S.C. House backs tax breaks for 98% of small businesses

COLUMBIA, S.C – A bill passed by the House could provide relief to small business owners. House lawmakers said the bill will ease the tax burden on 98 percent of South Carolina’s small businesses.

The House passed a bill that would change how the state taxes business property. Every year businesses must report and pay tax on their furniture and equipment if used for business purposes. The bill lets small businesses exclude the first $10,000 of equipment from the tax.

Lawmakers backing the measure said businesses already pay tax when they buy these items and most depreciate after being purchased. The bill impacts 98 percent of South Carolina small businesses according to lawmakers.

To qualify you must pay income taxes in South Carolina, be independently owned and operated and have fewer than 100 employees or make less than $10 million in annual sales. The bill passed the House unanimously.

Thomas Rhodes of Rhodes Companies said he pays hundreds of dollars every year on a depreciating asset in his printer and said the bill can help small businesses like his and others starting out.

“It’s really going to help the small mom and pop businesses that have equipment but not a lot of equipment yet their having to file this ridiculous business personal property tax every year to their local county,” Rhodes said.

Business personal property tax goes to the county a business is located in to help fund public services like schools and infrastructure. A report by the South Carolina Revenue and Fiscal Affairs Office said the bill could reduce local property taxes by $9 million.

Counties like Richland said they may raise millage rates to make up for the lost revenue. These are estimates and could change if eventually becoming law.

The bill now heads to the Senate.

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