License year, due date, definitions of income

• Standard due date of April 30, with May 1 start of license year. Penalties imposed after May 1
• Calculate tax on gross income for calendar year or business' fiscal year
• Standard definition of gross income
  • Clarifies gross income on which non-resident businesses pay the tax
  • Clarifies that gross income for agents does not include commissions that are divided with separate brokers or agents
  • Manufacturers may calculate tax for municipal locations on lesser of gross income, income allocated/apportioned to a location, expenses of location as cost center

Standard application/refund

• Standard business license application distributed by Revenue and Fiscal Affairs Office
• Refunds for overpayment to be requested by taxpayer by June 1

Standard class schedule

• Jurisdictions must adopt updated class schedule every odd year
• Class schedule recommended by Municipal Association of SC and certified by Revenue and Fiscal Affairs Office
• Flexibility to create sub-classes for economic development

Special agreements

• Protects current and future agreements with businesses on calculation of business license tax

Transition period

• Sets January 1, 2022, as effective date for law
• In the first year, prevents jurisdictions from realizing a revenue windfall that might result from transition to the new, mandated class schedule
• Allows city to gain new revenue in transition year resulting from growth in number of businesses

Online renewal payment portal

• Online business license renewal payment portal to be hosted and managed by Revenue and Fiscal Affairs Office
• RFA allowed to contract with software provider for portal services. Software provider may not retain any portion of tax payment
• Entire taxpayer payment goes directly to jurisdictions
• Only taxing jurisdictions may use portal information for auditing
• Jurisdictions must still accept payments in person, by phone or mail

 Appeals process

• Standard appeals process for all jurisdictions
• Sets new appeals and response deadlines
• Appeals of decisions by taxing jurisdiction may be appealed to Administrative Law Court

 Third parties

• Jurisdictions may continue to contract with third parties to identify non-compliant businesses
• Restricts third parties' contact with non-compliant businesses