COLUMBIA, S.C. (WCSC) — Small business owners in South Carolina could soon see savings on their annual business personal property taxes under a bill unanimously approved by the state House this week.
The proposal would exempt the first $10,000 of business equipment—including furniture, computers and other office items—from the state’s business personal property tax. Supporters say the change would benefit 98 percent of small businesses across the state.
“It’s showing South Carolina is dedicated to small businesses and their success,” Rep. Brandon Newton, R-Lancaster, who sponsored the bill, said.
Under current law, businesses must report and pay taxes each year on equipment used for business purposes. Newton said many of the smallest businesses would be removed from the tax rolls entirely by the exemption, without hurting local governments’ ability to fund essential services.
“It took out a lot of those super small businesses out of the tax entirely but did not harm our local governments in their ability to provide services,” Newton said. “We worked with the counties and the cities on this.”
Thomas Rhodes, founder of Rhodes Companies, said he pays hundreds of dollars each year in business property taxes for a copier in his office.
“The copying machine doesn’t use county services, yet we have to pay $300 a year to the county just to have a copying machine,” Rhodes said. “So it’s a ridiculous tax that needs to be reformed.”
To qualify for the exemption, a business must pay income taxes in South Carolina, be independently owned and operated, employ fewer than 100 workers and generate less than $10 million in annual sales.
Rhodes said the change would especially help small, family-run operations that own only a limited amount of equipment but still face annual reporting and tax requirements.
“It’s really going to help the small mom‑and‑pop businesses that have equipment but not a lot of equipment, yet they’re having to file this ridiculous business personal property tax every year,” he said.
Business personal property taxes fund county services such as schools and infrastructure. A report from the state’s Legislative Fiscal Office estimates the bill could reduce local property tax revenue by roughly $9 million. Counties, including Richland County, have said millage rate increases could be considered to offset the loss.
Those estimates could shift as the bill moves forward. The measure now heads to the Senate for consideration.
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