Access

The South Carolina Code authorizes cities to levy a business license tax based on gross income. A business license is not a sales, property or income tax, although it is calculated based on gross income. The City of Greenville’s business license ordinance has a fee structure with 22 rate classifications. The fee has a base rate which is a flat amount for the first $2,000 generated in gross receipts and an incremental rate which is a dollar amount charged per $1,000 in gross receipts generated greater than $2,000. It’s important to note that rates for nonresident businesses (those located outside the city, but conducting business inside the city) are double those of resident businesses. The tax serves to raise revenue to support city services and the license also serves to regulate businesses that disturb the public order, health and morality of the community.

As a means of assisting new businesses in their first few years of operation, the City of Greenville developed a Business License Abatement incentive for qualifying businesses locating in the city. A business in any of the following categories locating anywhere in the city would be eligible: Corporate Headquarters; Manufacturing; Research and Development and High Technology Growth businesses. Likewise, the following businesses locating in the following designated areas are also eligible for the abatement: retail and artists in the CBD and West End TIF Districts (downtown area); professional services in the Pleasantburg Overlay District; retail, artists and professional services on Pendleton Street (from South Main to the City limits where zoned commercial); and all business categories except for nightclubs, taverns, bars and related clubs, and bingo operators located in any areas annexed.

For new qualifying businesses, the abatement is applied according to the following schedule:

Businesses opening January 1st through June 30th

• 1st taxable year or portion thereof – 100%
• 2nd year – 66%
• 3rd year – 33%

Businesses opening July 1st through December 31st

• 1st taxable year or portion thereof – 100%
• 2nd year – 100%
• 3rd year – 50%

To get an idea of what your business license fee total may be, the City of Greenville website has a handy on-line calculator you can use to get an estimate at www.greenvillesc.gov/Revenue/BusinessLicense. Fees are about 1% of gross income and they are also tax deductable!