South Carolina and York County are focused on offering a fair, stable and reasonable tax structure that allows businesses to grow and prosper. Conservative fiscal management and taxation policies matched with rewarding incentives create a climate that encourages growth while maintaining balanced budgets.
The State of South Carolina administers income taxes, sales and use taxes and a franchise tax. There is no state level tax on real or personal property and no tax, state or local, on inventories or intangibles. Local government levies tax on both real and personal property.
Corporate Income Tax
- Annual corporate income is based on 1. Income allocated to SC operations and 2. Income apportioned to SC. The state offers a single factor sales apportionment formula.
- A 5 percent state corporate income tax rate is applied to the sum of the two incomes. There is no local income tax.
Sales and Use Tax
- South Carolina has a 6 percent sales and use tax. SC Counties can apply an additional 1 to 2 percent local sales and use tax. York County has applied a 1 percent additional sales tax with the sole purpose of funding local improvements through the Pennies For Progress Program. Total sales and use tax in York County is 7 percent.
- A variety of sales tax exemptions are offered for companies.
Corporate License Tax
- An annual fee to the SC Department of Revenue
- The rate is $15.00 plus $1.00 for each $1,000 of capital stock and paid-in or capital surplus
- For multi-state operations, the tax is determined by the apportionment manner
Local government levies tax on both real and personal property. There is no local income tax in York County.
- A local company’s property tax liability is a function of:
Property Value x Assessment Ratio x Millage
- For real property, the property value is determined through an appraisal. Tangible personal property is recorded at cost and then depreciated based on statutory depreciation (for manufacturers) and income depreciation (for other businesses). To ensure equitable and uniform assessment throughout the state, property involving transportation, utilities, and manufacturing are administered by the South Carolina Department of Revenue, not local government.
- Assessment ratios on manufacturing operations are 10.5 percent on real and personal property. Commercial operations are 6 percent on real property and 10.5 percent on personal property. (York County has the ability to reduce this assessment ratio through the Fee-in-Lieu of Tax incentive).
- Millage rates are adopted annually by the local governing bodies and are applied to the assessments. A mill is equal to $0.001. York County millage rates can be found here.