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- 2026-2027 Business License Renewals are PAST DUE!
License Required.
Every person engaged or intending to engage in any business, calling, occupation, profession, or activity engaged in with the object of gain, benefit, or advantage, in whole or in part, within the limits of the Town of Ninety Six, South Carolina, is required to pay an annual license tax for the privilege of doing business and obtain a business license as herein provided.
Links to Forms:
- Ordinance 2021-03
- Business License Application
- Local Business License Renewal Portal
- GovPossible Portal - License Renewal
- Business License Handbook
Purpose and Duration.
The business license required by this ordinance is for the purpose of providing such regulation as may be required for the business subject thereto and for the purpose of raising revenue for the general fund through a privilege tax. Except as set forth below for business licenses issued to contractors with respect to specific construction projects, each yearly license shall be issued for the twelve-month period of May 1 to April 30. A business license issued for a construction contract may, at the request of the licensee, be stated to expire at the completion of the construction project; provided, any such business license may require that the licensee file, by each April 30 during the continuation of the construction project, a statement of compliance, including but not limited to a revised estimate of the value of the contract. If any revised estimate of the final value of such a project exceeds the amount for which the business license was issued, the licensee shall be required to pay a license fee at the then-prevailing rate on the excess amount. The provisions of this ordinance and the rates herein shall remain in effect from year to year as amended by the Council.
Proof of Income
Act 176, the SC Business License Standardization Act (BLSA), created many specific requirements that municipalities with a business license tax must comply with by January 1, 2022.
Below shows how the BLSA defines “Gross Income” (aka “Gross Receipts”).
“Gross Income” means the gross receipts or gross revenue of a business, received or accrued, for one calendar or fiscal year, collected or to be collected from business done within the Municipality. If the licensee has a domicile within the Municipality, business done within the Municipality shall include all gross receipts or revenue received or accrued by such licensee. If the licensee does not have a domicile within the Municipality, business done within the Municipality shall include only gross receipts or revenue received or accrued within the Municipality. In all cases, if the licensee pays a business license tax to another county or municipality, then the licensee’s gross income for the purpose of computing the tax within the Municipality must be reduced by the amount of revenues or receipts taxed in the other county or municipality and fully reported to the Municipality. Gross income for business license tax purposes shall not include taxes collected for a governmental entity, escrow funds, or funds that are the property of a third party. The value of bartered goods or trade-in merchandise shall be included in gross income. The gross receipts or gross revenues for business license purposes may be verified by inspection of returns and reports filed with the Internal Revenue Service, the South Carolina Department of Revenue, the South Carolina Department of Insurance, or other government agencies. In calculating gross income for certain businesses, the following rules shall apply:
A. Gross income for agents shall be calculated on gross commissions received or retained, unless otherwise specified. If commissions are divided with other brokers or agents, then only the amount retained by the broker or agent is considered gross income. B. Except as specifically required by S.C. Code § 38-7-20, gross income for insurance companies shall be calculated on gross premiums written. C. Gross income for manufacturers of goods or materials with a location in the Municipality shall be calculated on the lesser of (i) gross revenues or receipts received or accrued from business done at the location, (ii) the amount of income allocated and apportioned to that location by the business for purposes of the business’s state income tax return, or (iii) the amount of expenses attributable to the location as a cost center of the business. Licensees reporting gross income under this provision shall have the burden to establish the amount and method of calculation by satisfactory records and proof. Manufacturers include those taxpayers reporting a manufacturing principal business activity code on their federal income tax returns.
Accepted documentation to verify this income includes:
Federal Income Tax Return: A copy of the front page of your business federal tax return (such as Schedule C Form 1040, Form 1065, Form 1120, or Form 1120S).
South Carolina Income Tax Return: A copy of your state income tax return.
CPA/Accounting Firm Certification: A notarized letter or a letter signed and stamped by an independent accounting firm verifying the total gross income or commissions.
For New Businesses: A reasonable estimate of projected gross income for the upcoming year.
For Specific Projects/Contractors: A copy of the contract, proposal, or scope of work indicating the total contract amount.
Key Considerations for "Gross Income" in SC:
Definition: It is the total received from business operations without deductions for expenses, cost of goods, or salaries.
Exemptions: Income from business conducted outside the municipality (on which a tax was paid elsewhere) can be subtracted.
Non-includable items: Taxes collected for a government entity, escrow funds, or third-party funds are generally not included in gross income.
Verification: Municipalities may verify this information with the SC Department of Revenue or the IRS.
Telephone: 864-543-2200 opt 1