Upper West SC News

City of Newberry issued the following announcement on January 26.

Businesses operating within the city limits should soon receive a letter explaining Act 176, the South Carolina Business License Standardization Act.

For many years, businesses raised concerns with legislators about the inconsistencies and complicated processes found around the state among local governments that collect business license taxes. Legislators came together with the business community and cities and towns to remedy these issues with Act 176.

This business license standardization act streamlines the business license process, creating the same process for taxing jurisdictions across the state. The act was passed in September 2020. However, as of January 1, 2022, all municipalities in South Carolina that levy a local business license tax must comply with the law.

Details of Act 176 include:

• One standard application as adopted by the South Carolina Revenue and Fiscal Affairs Office
• Businesses will be listed in the standard class schedule according to their North American Industry Classification System code, or NAICS code
• Standard class schedule as approved by the SC RFA
• The creation of the Local Business License Renewal Center, an online payment portal where businesses can renew all local licenses at one time.

Act 176 mandates a standard license year for all business licenses in the state, May 1 – April 30. The City of Newberry made this change for their new business license year of May 1 – April 30, 2020. City Finance Director Shannon Smith said that a business license tax is based on a business’ gross income from the prior calendar year regardless of the due date or license period. Businesses will only pay once on the full calendar year’s gross income, no matter the length of the transitional license year.

For any questions, please contact Stephanie Amick, financial services specialist at samick@cityofnewberry.com or at 803-321-1007, ext. 3606.

Original source can be found here.