§ 10-40. Classification and rates.

(a)

The Class Structure Model by the North American Industry Classification System code, designated as Appendix B to this article, may be amended by the Council from time to time, and current copies shall be filed in the office of the municipal clerk. Appendix B is a tool for classification and not a limitation on businesses subject to a license tax. The license official shall determine the proper class for a business according to the applicable NAICS code.

(b)

The license tax for each class of businesses subject to this article shall be computed in accordance with the rate schedule, designated as Appendix A to this article, which may be amended by the council from time to time and a current copy filed in the office of the municipal clerk.

APPENDIX A
RATE SCHEDULE

Rate Class	Income: $0.00—$2,000.00, Minimum Tax	Income Over $2,000.00 Rate per Thousand or Fraction Thereof
1	$30.00	$1.00
2	$35.00	$1.05
3	$40.00	$1.10
4	$45.00	$1.15
5	$50.00	$1.20
6	$55.00	$1.25
7	$60.00	$1.30
8.1	$75.00	$1.30
8.2	$ amount set by state statute
8.3	MASC Telecommunications
8.41	$75.00	$1.30
8.42	$75.00	$1.30
8.5	$75.00	$1.30
8.61	$75.00	$1.30
8.62	$75.00	$1.30
8.7	MASC Insurance
8.81	$12.50 + $12.50 per machine
8.82	$75.00	$1.30
8.83	$12.50 + $12.50 per machine
8.91	$75.00	$1.30
8.92	$75.00	$1.30
8.93	$75.00	$1.30
8.10	$75.00 + $5.00 per table $

 

 

NON-RESIDENT RATES

Unless otherwise specifically provided, all minimum taxes and rates shall be doubled for nonresidents and itinerants having no fixed principal place of business within the municipality.

DECLINING RATES

Declining Rates apply in all classes for gross income in excess of $1,000,000.00, unless otherwise specifically provided for in this article.

Gross Income in $ Millions	Percent of Class Rate For Each Additional $1,000.00
0—1	100%
1—2	90%
2—3	80%
3—4	70%
Over 4	60%

 

 

CLASS 8 RATES

Each NAICS number designates a separate sub-classification. The businesses in this section are treated as separate and individual subclasses due to provisions of state law, regulatory requirements, service burdens, tax equalization considerations, etc., which are deemed to be sufficient to require individually determined rates. Non-resident rates do not apply except where indicated.

8.1	NAICS 230000 - Contractors, Construction, All Types [non-resident rates apply]
	Minimum on first $2,000.00 ..... $75.00 Plus
	Each additional 1,000.00 ..... $1.30

 

A trailer at the construction site or structure in which the contractor temporarily resides is not a permanent place of business under this article.

The total tax for the full amount of the contract shall be paid prior to commencement of work and shall entitle contractor to complete the job without regard to the normal license expiration date. An amended report shall be filed for each new job and the appropriate additional license fee per $1,000.00 of the contract amount shall be paid prior to commencement of new work. Only one base tax shall be paid in a calendar year.

No contractor shall be issued a business license until all state and municipal qualification examination and trade license requirements have been met. Each contractor shall post a sign in plain view on each job identifying the contractor with the job.

Sub-contractors shall be licensed on the same basis as general or prime contractors for the same job. No deductions shall be made by a general or prime contractor for value of work performed by a sub-contractor.

No contractor shall be issued a business license until all performance and indemnity bonds required by the Building Code have been filed and approved. Zoning permits must be obtained when required by the Zoning Ordinance.

Each prime contractor shall file with the license official a list of sub-contractors furnishing labor or materials for each project.

8.2	NAICS 482 - Railroad Companies —(See S.C. Code 1976, § 12-23-210)
	For the first 1,000 inhabitants of the city ..... 75.00
	For each additional 1,000 inhabitants according to the last US Census ..... $1.30
	[Census population: 2160 Tax = $_____]

 

8.3	NAICS 5171, 5172—Telephone Companies:

 

A. Notwithstanding any other provisions of the Business License Article, the business license tax for "retail telecommunications services," as defined in S.C. Code 1976, § 58-9-2200, shall be at the maximum rate authorized by S.C. Code 1976, § 58-9-2220, as it now provides or as provided by amendment. The business license tax year shall begin on January 1 of each year. Declining rates shall not apply.

B. In conformity with S.C. Code 1976, § 58-9-2220, the business license tax for "retail telecommunications services" shall apply to the gross income derived from the sale of retail telecommunications services for the preceding calendar or fiscal year which either originate or terminate in the municipality and which are charged to a service address within the municipality regardless of where these amounts are billed or paid and on which a business license tax has not been paid to another municipality. The measurement of the amounts derived from the retail sale of mobile telecommunications services shall include only revenues from the fixed monthly recurring charge of customers whose service address is within the boundaries of the municipality. For a business in operation for less than one year, the amount of business license tax shall be computed on a 12-month projected income.

C. The business license tax for "retail telecommunications services" shall be due on January 1 of each year and payable by January 31 of that year, without penalty.

D. The delinquent penalty shall be five percent of the tax due for each month, or portion thereof, after the due date until paid.

E. Exemptions in this business license article for income from business in interstate commerce are hereby repealed. Properly apportioned gross income from interstate commerce shall be included in the gross income for every business subject to a business license tax.

F. Nothing in this article shall be interpreted to interfere with continuing obligations of any franchise agreement or contractual agreement in the event that the franchise or contractual agreement should expire after December 31, 2003.

G. All fees collected under such a franchise or contractual agreement expiring after December 31, 2003, shall be in lieu of fees or taxes which might otherwise be authorized by this article.

H. As authorized by S.C. Code 1976, § 5-7-300, the agreement with the Municipal Association of South Carolina for collection of current and delinquent license taxes from telecommunications companies pursuant to S.C. Code 1976, § 58-9-2200 shall continue in effect.

8.41	NAICS 423930—Junk or Scrap Dealers [Non-resident rates apply]
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000,.00 or fraction, over $2,000.00 ..... $1.30
8.42	NAICS 522298—Pawn Brokers— All Types
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000.00, or fraction, over $2,000.00 ..... $1.30
8.5	NAICS 4411, 4412—Automotive, Motor Vehicles, Boats, Farm Machinery or Retail
	(except auto supply stores—see 4413)
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000.00, or fraction, over $2,000.00 ..... $1.30

 

One sales lot not more than 400 feet from the main showroom may be operated under this license provided that proceeds from sales at the lot are included in gross receipts at the main office when both are operated under the same name and ownership.

Gross receipts for this classification shall include value of trade-ins. Dealer transfers or internal repairs on resale items shall not be included in gross income.

NAICS 454390—Peddlers, Solicitors, Canvassers, Door-To-Door Sales
	Direct retail sales of merchandise. [Non-resident rates apply]
8.61	Regular activities [more than two sale periods of more than three days each per year]
	Minimum on first $2,000 ..... $75.00 Plus
	Per $1,000, or fraction, over $2,000.00 ..... $1.30
8.62	Seasonal activities [not more than two sale periods of not more than three days each year, separate license required for each sale period]
	Minimum on first $2,000 ..... $75.00 Plus
	Per $1,000, or fraction, over $2,000 ..... $1.30

 

Applicant for a license to sell on private property must provide written authorization from the properly owner to use the intended location.

8.7	NAICS 5241—Insurance Companies:

 

Except as to fire insurance, "gross premiums" means gross premiums written for policies for property or a risk located within the municipality. In addition, "gross premiums" shall include premiums written for policies that are sold, solicited, negotiated, taken, transmitted, received, delivered, applied for, produced or serviced by (1) the insurance company's office located in the municipality, (2) the insurance company's employee conducting business within the municipality, or (3) the office of the insurance company's licensed or appointed producer (agent) conducting business within the municipality, regardless of where the property or risk is located, provided no tax has been paid to another municipality in which the property or risk is located based on the same premium.

Solicitation for insurance, receiving or transmitting an application or policy, examination of a risk, collection or transmitting of a premium, adjusting a claim, delivering a benefit, or doing any act in connection with a policy or claim shall constitute conducting business within the municipality, regardless of whether or not an office is maintained in the municipality.

As to fire insurance, "gross premiums" means gross premiums (1) collected in the municipality, and/or (2) realized from risks located within the limits of the municipality.

Gross premiums shall include all business conducted in the prior calendar year.

Gross premiums shall include new and renewal business without deductions for any dividend, credit, return premiums or deposit.

Declining rates shall not apply.

NAICS 52411—Life, Health and
 Accident ..... 0.75% of Gross Premiums

NAICS 524126—Fire and Casualty
 Licensed ..... 2% of Gross Premiums

NAICS 524127—Title Insurance ..... 2% of Gross Premiums

 

Notwithstanding any other provisions of this article license taxes for insurance companies shall be payable on or before May 31 in each year without penalty. The penalty for delinquent payments shall be five percent of the tax due per month, or portion thereof, after the due date until paid.

Any exemptions in the business license ordinance for income from business in interstate commerce are hereby repealed. Gross income from interstate commerce shall be included in the gross income for every business subject to a business license tax.

Pursuant to S.C. Code Ann. §§ 38-45-10 and 38-45-60, the Municipal Association of South Carolina is designated the municipal agent for purposes of administration of the municipal broker's premium tax. The agreement with the Association for administration and collection of current and delinquent license taxes from insurance companies as authorized by S.C. Code § 5-7-300.

[The South Carolina General Assembly, in order to ensure consistency with the federal Non-admitted and Reinsurance Reform Act of 2010 ("NRRA"), ratified an act (Rat# 283) on June 28, 2012, amending S.C. Code §§ 38-7-16 and 38-45-10 through 38-45-195. The act establishes a blended broker's premium tax rate of 6 percent comprised of a 4 percent state broker's premium tax and a 2 percent municipal broker's premium tax. The act states a municipality may not impose on brokers of non-admitted insurance in South Carolina an additional license fee or tax based upon a percentage of premiums.]

NAICS 713120—Amusement Machines, coin operated (except gambling):
Music machines, juke boxes, kiddy rides, video games, pin tables with levers, and other amusement machines with or without free play feature licensed by SC Department of Revenue pursuant to S.C. Code 1976, § 12-21-2720(A)(1) and (A)(2) - [Type I and Type II]
8.81	Operator of machine ..... $12.50/machine Plus
	..... $12.50 business license
	for operation of all machines (not on gross income).[S.C. Code 1976, § 12-21-2746]
8.82	Distributor selling or leasing machines (not licensed by the state as an operator pursuant to S.C. Code 1976, §12-21-2728)—[nonresident rates apply.]
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000.00 or fraction over $2,000.00 ..... $1.30
NAICS 713290—Amusement Machines, coin operated, non-payout
Amusement machines of the non-payout type or in-line pin game licensed by SC Department of Revenue pursuant to S.C. Code 1976, § 12-21-2720(A)(3) [Type III]
8.83	Operator of machine (owner of business) ..... $12.50/machine Plus
	..... $12.50 business license
	for operation of all machines (not on gross income). [S.C. Code 1976 §12-21-2720(B)]
8.82	Distributor selling or leasing machines (not licensed by the state as an operator pursuant to S.C. Code 1976, § 12-21-2728)—[nonresident rates apply.]
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000.00, or fraction, over $2,000.00 ..... $1.30
8.91	NAICS 713290—Bingo halls, parlors:
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000.00, or fraction, over $2,000.00 ..... $1.30
8.92	NAICS 711190—Carnivals and Circuses:
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000.00, or fraction, over $2,000.00 ..... $1.30
8.93	NAICS 722410—Drinking Places, bars, lounges, cabarets (alcoholic beverages consumed on premises)
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000.00, or fraction, over $2,000.00 ..... $1.30
License must be issued in the name of the individual who has been issued a state alcohol, beer or wine permit or license and will have actual control and management of the business.
8.10	NAICS 713990—Billiard or Pool Rooms, all types ..... $5.00 stamp/table Plus
	Minimum on first $2,000.00 ..... $75.00 Plus
	Per $1,000.00, or fraction, over 2,000 ..... $1.30
NAICS 22112 - Electric Power Distribution ..... See Consent or Franchise
NAICS 22121 - Natural Gas Distribution ..... See Consent or Franchise
NAICS 517110 - Television: Cable or Pay
	Services using public streets ..... See Franchise

 

APPENDIX B
2016 BUSINESS LICENSE CLASS SCHEDULE BY NAICS CODE

This appendix will be updated annually based on the latest available IRS statistics. The updated Business License Class Schedule may be accessed at
http://www.masc.sc/SiteCollectionDocuments/Finance/BL-AppxB.pdf

NAICS Code	Industry Sector	Class
11	Agriculture, forestry, hunting and fishing	2
113	Forestry and logging (including forest nurseries, timber tracts)	1
115	Support activities for agriculture and forestry	1
21	Mining	3
2211	Electric Power Generation, Transmission and Distribution	Franchise
2212	Natural Gas Distribution	Franchise
22	Utilities	1
23	Construction	8.1
31-33	Manufacturing	1
311	Food manufacturing	1
313	Textile and textile product mills	1
315	Apparel	1
316	Leather and allied products	1
321	Wood products	1
322	Paper products
323	Printing and related support activities	1
324	Petroleum and coal products	1
325	Chemical manufacturing
327	Nonmetallic mineral products	1
331	Primary metal industries	1
332	Fabricated metal products	1
333	Machinery	2
334	Computer and electronic products	2
335	Electrical equipment, appliances, and components	2
336	Transportation equipment	1
337	Furniture and related products	1
339	Other miscellaneous manufacturing	2
42	Wholesale trade	1
423930	Recyclable Material Merchant Wholesalers (Junk)	8.4A
44-45	Retail trade	1
441	Motor vehicle and parts dealers	1
4411	Automobile Dealers	8.5
4412	Other Motor Vehicle Dealers	8.5
442	Furniture and home furnishing stores	1
443	Electronic and appliance stores	1
444	Building material and garden equipment and supplies dealers	1
445	Food and beverage stores	1
446	Health and personal care stores	1
447	Gasoline stations	1
448	Clothing and accessories stores	1
451	Sporting goods, hobby, book, and music stores	1
452	General merchandise stores	1
453	Miscellaneous store retailers	1
454	Nonstore retailers	1
45439	Other Direct Selling Establishments (Peddlers)	8.6
48-49	Transportation and warehousing	1
482	Rail Transportation	8.2
484	Truck Transportation	1
486	Pipeline transportation	1
493	Warehousing and storage facilities	2
51	Information	2
511	Publishing industries (except internet)	2
512	Motion picture and sound recording	2
515	Broadcasting (except internet) and telecommunications	2
517	Telecommunications	2
5171	Wired Telecommunications Carriers	8.3
5172	Wireless Telecommunications Carriers (except Satellite)	8.3
518	Internet service providers, web search portals, and data processing	2
519	Other Information Services	2
52	Finance and insurance	4
522	Credit intermediation and related activities	4
522298	Pawnshops	8.4B
523	Securities, commodity contracts, and other financial investments	7
524	Insurance agents, brokers, and related activities	1
5241	Insurance Carriers	8.7
52421	Insurance Brokers for non-admitted Insurance Carriers	8.7
525	Funds, trusts and other financial vehicles	7
53	Real estate and rental and leasing	5
531	Real estate	6
5311	Lessors of real estate (including miniwarehouses and self storage)	7
532	Rental and leasing services	2
533	Lessors of nonfinancial assets	7
54	Professional, scientific, and technical services	3
5411	Legal Services	5
5413	Architectural, engineering and related services	3
5416-9	Other professional, scientific, and technical services	3
55	Management of companies	4
56	Administrative and support and waste management and remediation services	2
561	Administrative and support services	2
562	Waste management and remediation services	1
61	Educational services	2
62	Health care and social assistance	2
623	Nursing and Residential Care Facility	1
71	Arts, entertainment, and recreation	2
71119	Other Performing Arts Companies (Carnivals and Circuses)	8.9B
712	Museums, Historical Sites and similar institutions	1
7131	Amusement Parks and Arcades	8.8
7132	Nonpayout Amusement Machines	8.8
713290	Bingo Halls	8.9A
713990	All Other Amusement and Recreational Industries (pool tables)	8.10
721	Accommodation	1
722	Food services and drinking places	1
72241	Drinking Places (Alcoholic Beverages)	8.9C
81	Other services	2
811	Repair and maintenance	1
8111	Auto repair and maintenance	1
812	Personal and laundry services	3
813	Religious, grantmaking, civic, professional, and similar organizations	3

 

 

(Ord. No. 18-03, § 21, 5-15-2018)