MYRTLE BEACH, SC- A new bill introduced to the General Assembly last week proposes major changes to South Carolina’s Business License Tax.
The Business License Tax Reform Act affects cities across the state. Currently, each municipality is in charge of its own licensing rates. In Myrtle Beach, the amount varies based on a business’ gross income rate. The new bill proposes that a uniform tax rate of no more than $100 be placed on all businesses.
According to Spokesperson Mark Kruea, Myrtle Beach receives $19.1 million in business license fees. If the bill goes through, that amount will drop to $500,000 annually.
“How do you cut 19 million dollars worth of service that’s the real question,” said Kruea.
He said the changes will lead to massive cuts or a massive deficit in the city’s budget. An existing law prohibits the city from increasing the property tax by more than 3.8 mills, so Kruea said the funds would have to come out of city services.
“Eliminate all of the recreation programs, close all of the recreation centers, cut 20% out of the police department, cut 20% out of the fire department…and you still aren’t at $19 million,” stated Kruea.
In addition to the $100 tax cap, the bill requires that a person is only subject to one business license tax. The tax will be due July 1 each year, collected by the Department of Revenue and paid online. Also, any local governing body that imposes the tax will have to issue a report to the General Assembly detailing the amount it collected and the manner in which the funds were expended.
State Representative Nelson Hardwick is one of the bill’s sponsors. He told News 13, his goal is to protect businesses from paying multiple fees. He also said the bill is in the early stages and will likely go through several changes before being passed.