South Carolina, York County, and Rock Hill are focused on offering a fair, stable, and reasonable tax structure that allows businesses to grow and prosper. Conservative fiscal management and taxation policies matched with rewarding incentives, create a climate that encourages growth while maintaining balanced budgets.
The State of South Carolina administers income taxes, sales and use taxes and a franchise tax. There is no state level tax on real or personal property and no tax, state or local, on inventories or intangibles.
Corporate Income Tax
Annual corporate income is based on:
1. Income allocated to SC operations and
2. Income apportioned to SC. The state offers a single factor sales apportionment formula.
A 5 percent state corporate income tax rate is applied to the sum of the two incomes. There is no local income tax.
Sales and Use Tax
South Carolina has a 6 percent sales and use tax. SC Counties can apply an additional 1 to 2 percent local sales and use tax. York County has applied a 1 percent additional sales tax with the sole purpose of funding local improvements through the Pennies For Progress Program.
Total sales and use tax in York County is 7 percent.
A variety of sales tax exemptions are offered for companies.
Corporate License Tax
Businesses pay an annual fee to the SC Department of Revenue.
The rate is $15.00 plus $1.00 for each $1,000 of capital stock and paid-in or capital surplus
For multi-state operations, the tax is determined by the apportionment manner
The City of Rock Hill levies tax on both real and personal property. There is no local income tax in York County. City of Rock Hill taxes are administered by the York County assessor’s office.
A local company’s property tax liability is a function of:
Property Value x Assessment Ratio x Millage
For real property, the property value is determined through an appraisal. Tangible personal property is recorded at cost and then depreciated based on statutory depreciation (for manufacturers) and income depreciation (for other businesses). To ensure equitable and uniform assessment throughout the state, property involving transportation, utilities, and manufacturing are administered by the South Carolina Department of Revenue, not local government.
Assessment ratios on manufacturing operations are 10.5 percent on real and personal property. Commercial operations are 6 percent on real property and 10.5 percent on personal property. (York County has the ability to reduce this assessment ratio through the Fee-in-Lieu of Tax incentive).
Millage rates are adopted annually by the local governing bodies and are applied to the assessments. A mill is equal to $0.001. View York County millage rates online.
For more information about local and state taxes visit:
Every person engaged or intending to engage in any calling, business, occupation, or profession in whole or in part within the City limits of Rock Hill, is required to pay an annual license fee for the privilege of doing business, and obtain a business license. “Business” is defined as a calling, occupation, profession or activity engaged in with the object of gain, benefit or advantage, either directly or indirectly.
A business license is an excise tax levied on the privilege of doing business in a particular jurisdiction. It is a method of requiring a business or occupation to contribute its share in support of the government and to regulate business. It is not a sales or income tax, although it is measured by gross income.
In addition to a business license fee, the City of Rock Hill has a 2% Hospitality Tax that is required for businesses selling food and beverages prepared or modified for on-premises consumption. The tax is due on the 20th of each month. You can view more information about the Hospitality Tax in the municipal ordinance.
The City also has a 3% Accommodations Tax that is required for hotels, motels and other businesses providing accommodations to transients for consideration. This tax is also due on the 20th of each month. Visit Finance Business Tax Forms for tax reporting forms. You can also view more information about the Accommodations Tax in the municipal ordinance.
Our Planning and Development will provide personal assistance to businesses locating, building or expanding their business inside city limits through the OPEN FOR BUSINESS PROGRAM. They can provide additional information on business licenses, zoning, and building codes, as well as, help you set up your initial utility accounts.
The SC Dept. of Revenue also requires an Accommodations Tax. For more information visit www.sctax.org.
For more information on calculating your business license fee as well as other fees, please visit the City of Rock Hill's Planning and Development Department.