In South Carolina, only local government levies property taxes. There is no state tax on real or personal property. A company’s property tax liability is a function of: Property Value (less depreciation) x Assessment Ratio x Millage.
Example: Property tax due assuming $1,000 property value with the depreciation removed and millage of 300.
$1,000 x 10.5% x .300 = $31.50
Property Tax Exemptions
- All inventories (raw materials, work-in-progress, and finished goods)
- All intangible property
- All pollution control equipment
Five-Year Property Tax Abatement
Manufacturers investing at least $50,000 or more in land, building, or equipment are entitled to a five-year property tax abatement from county operating taxes. This abatement usually represents a savings of 15% to 25% depending on the location. The abatement does not include the school portion of the local millage.
Fee-In-Lieu of Property Tax (FILOT)
This discretionary local incentive allows qualifying companies to negotiate a fee instead of paying property taxes. Advantages include:
- Significantly lowering property tax payments by negotiating a lower assessment ratio (from 10.5% to as low as 6%)
- Ability to lower property tax payments 43% on average by negotiating a fee-in-lieu
- Negotiating the applicable millage rate to a 20-year locked rate or a five-year adjustable rate
- Term of the agreement can be 20 years and in some cases 30 years.
Special Source Revenue Credit (SSRC)
The county has the discretion to offer a Special Source Revenue Credit to help offset a project’s infrastructure and/or machinery and equipment costs. This is done in the form of a credit off the tax payment due to the county in designated years.