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A determination that any portion of this chapter is invalid or unenforceable shall not affect the remaining portions. To the extent of any conflict between the provisions of this chapter and the provisions of the South Carolina Business License Tax Standardization Act, as codified at S.C. Code §§ 6-1-400 et seq., the Standardization Act shall control.
(Ord. 21-14, passed 12-6-2021)
(A) The business license tax for each class of businesses subject to this chapter shall be computed in accordance with the current business license rate schedule, designated as Appendix A of this chapter, which may be amended from time to time by the Council.
(B) The current business license class schedule is designated as Appendix B of this chapter. Hereafter, no later than December 31 of each odd year, the municipality shall adopt, by ordinance, the latest standardized business license class schedule as recommended by the Municipal Association of South Carolina and adopted by the Director of the South Carolina Revenue and Fiscal Affairs Office. Upon adoption by the municipality, the revised business license class schedule shall then be appended to this chapter as a replacement Appendix B.
(C) The classifications included in each rate class are listed with NAICS codes, by sector, subsector, group, or industry. The business license class schedule (Appendix B) is a tool for classification and not a limitation on businesses subject to a business license tax. The classification in the most recent version of the business license class schedule adopted by the Council that most specifically identifies the subject business shall be applied to the business. The License Official shall have the authority to make the determination of the classification most specifically applicable to a subject business.
(D) A copy of the class schedule and rate schedule shall be filed in the office of the Municipal Clerk.
(E) (1) All "in town" businesses must pay an annual solid waste tipping fee, due and payable when obtaining a business license. This fee is ESTABLISHED AND MANDATED BY ANDERSON COUNTY to help defray the cost of solid waste. The town collects this fee on behalf of and as a convenience to the county. This is a separate fee from any sanitation fees charged by the town for collection of garbage and is not a part of the business license tax established by this chapter.
(2) Apartment complexes and home occupations are exempt from this section.
(Ord. 21-14, passed 12-6-21)
Any person violating any provision of this chapter shall be deemed guilty of an offense and shall be subject to a fine of up to $500 or imprisonment for not more than 30 days or both, upon conviction. Each day of violation shall be considered a separate offense. Punishment for violation shall not relieve the offender of liability for delinquent taxes, penalties, and costs provided for in this chapter.
(Ord. 21-14, passed 12-6-21)
(A) Resident rates.
Income: $0 - $2,000 | Income over $2,000 | |
Rate Class | Base Rate | Rate per $1,000 or Fraction Thereof |
Income: $0 - $2,000 | Income over $2,000 | |
Rate Class | Base Rate | Rate per $1,000 or Fraction Thereof |
1 | $25 | $0.80 |
2 | $26 | $0.85 |
3 | $27 | $0.90 |
4 | $28 | $0.95 |
5 | $29 | $1 |
6 | $30 | $1.05 |
7 | $31 | $1.10 |
8.1 | $15 | $0.85 |
8.2 | Set by state statute | |
8.3 | MASC telecommunications | |
8.4 | MASC insurance | |
8.51 | $12.50 + $12.50 per machine | |
8.52 | $12.50 + $180 per machine | |
8.6 | $27 + $5 or $12.50 per table | $0.90 |
9.9 | $31 | $1.10 |
(B) Non-resident rates. Unless otherwise specifically provided, all taxes and rates shall be doubled for non-residents and itinerants having no fixed principal place of business within the municipality.
(C) Declining rates. Declining rates apply in all classes for gross income in excess of $1,000,000, unless otherwise specifically provided for in this chapter.
Gross Income in Millions of Dollars | Percent of Class Rate for Each Additional $1,000 |
Gross Income in Millions of Dollars | Percent of Class Rate for Each Additional $1,000 |
0 - 1 | 100% |
1 - 2 | 85% |
2 - 3 | 80% |
3 - 4 | 75% |
4 - 5 | 60% |
5 - 6 | 55% |
Over 6 | 50% |
(D) Class 8 rates.
(1) Each NAICS number designates a separate subclassification. 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, and other factors that are deemed sufficient to require individually determined rates. In accordance with state law, the municipality also may provide for reasonable subclassifications for rates, described by an NAICS sector, subsector, or industry, that are based on particularized considerations as needed for economic stimulus or for the enhanced or disproportionate demands on municipal services or infrastructure.
(2) Non-resident rates do not apply except where indicated.
(E) 8-1 NAICS 230000 - contractors, construction, all types (non-resident rates apply).
(1) Resident rates, for contractors having a permanent place of business within the municipality:
(a) Minimum on first $2,000: $15; plus
(b) Each additional $1,000: $0.85.
(2) Non-resident rates apply to contractors that do not have a permanent place of business within the municipality. A trailer at the construction site or structure in which the contractor temporarily resides is not a permanent place of business under this chapter.
(3) 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.
(4) 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.
(5) 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.
(6) Each prime contractor shall file with the License Official a list of sub-contractors furnishing labor or materials for each project.
(7) For licenses issued on a per-job basis, the total tax for the full amount of the contract shall be paid prior to commencement of work and shall entitle the 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 of the contract amount shall be paid prior to commencement of new work. Only one base tax shall be paid in a license year. Licensees holding a per-job license shall 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 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.
(F) 8.2 NAICS 482 - railroad companies. See S.C. Code § 12-23-210.
(G) 8.3 NAICS 517111, 517112, 517122 - telephone companies. With respect to "retail telecommunications services" as defined in S.C. Code § 58-9-2200, the municipality participates in a collections program administered by the Municipal Association of South Carolina. The municipality has approved participation in the collections program by separate ordinance (the "Telecommunications Collections Ordinance"). The rates, terms, conditions, dates, penalties, appeals process, and other details of the business license applicable to retail telecommunications services are set forth in the Telecommunications Collections Ordinance.
(H) 8.4 NAICS 5241 - insurance companies. Independent agents, brokers, their employees are subject to a business license tax based on their natural class. With respect to insurers subject to license fees and taxes under S.C. Code Title 38, Ch. 7 and to brokers under S.C. Code Title 38, Ch. 45, the municipality participates in a collections program administered by the Municipal Association of South Carolina. The municipality has approved participation in the collections program by separate ordinance (the "Insurers and Brokers Collections Ordinance"). The rates, terms, conditions, dates, penalties, appeals process, and other details of the business license applicable to insurers and brokers are set forth in the Insurers and Brokers Collections Ordinance.
(I) 8.51 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 the SC Department of Revenue pursuant to S.C. Code § 12-21-2720(A)(l) and (A)(2) [Type I and Type II]:
(1) For operation of all machines (not on gross income), pursuant to S.C. Code §12-21-2746:
(a) Per machine: $12.50; plus
(b) Business license: $12.50.
(2) Distributors that sell or lease machines and are not licensed by the state as an operator pursuant to S.C. Code § 12-21-2728 are not subject to Subclass 8.51.
(J) 8.52 NAICS 713290 - amusement machines, coin operated, non-payout. Amusement machines of the non-payout type or in-line pin game licensed by the SC Department of Revenue pursuant to S.C. Code § 12-21-2720(A)(3) [Type III].
(1) For operation of all machines (not on gross income), pursuant to S.C. Code § 12-21-2720(B):
(a) Per machine: $180; plus
(b) Business license: $12.50.
(2) Distributors that sell or lease machines and are not licensed by the state as an operator pursuant to § 12-21-2728 are not subject to Subclass 8.52.
(K) 8.6 NAICS Code Varies - billiard or pool tables. A business that offers the use of billiard or pool tables shall be subject to business license taxation under its natural class for all gross income of the business excluding the gross income attributable to the billiard or pool tables. In addition, the billiard or pool tables shall require their own separate business licenses pursuant to SC Code § 12-21-2746 and shall be subject to a license tax of $5 per table measuring less than 3- 1/2 feet wide and seven feet long, and $12.50 per table longer than that.
(L) 9.9 NAICS 531110 - lessors of residential buildings and dwellings. Any person owning or having any financial interest in two or more units of residential which units of property are for rent, lease, regardless of whether said units are at the same location within the town limits of Pendleton, shall be considered in the rental business and shall pay a business license tax based on the rate schedule:
(1) Minimum on first $2,000: $31; plus
(2) Per $1,000, or fraction, over $2,000: $1.10.
(Ord. 21-14, passed 12-6-21; Am. Ord. 23-15, passed 11-7-23)
This appendix will be updated every odd year based on the latest available IRS statistics.
NAICS Sector/Subsector | Industry Sector | Class |
NAICS Sector/Subsector | Industry Sector | Class |
11 | Agriculture, forestry, hunting and fishing | 1 |
21 | Mining | 2 |
31 - 33 | Manufacturing | 3 |
42 | Wholesale trade | 1 |
44 - 45 | Retail trade | 1 |
48 - 49 | Transportation and warehousing | 1 |
51 | Information | 4 |
52 | Finance and insurance | 7 |
53 | Real estate and rental and leasing | 7 |
54 | Professional, scientific, and technical services | 5 |
55 | Management of companies | 7 |
56 | Administrative and support and waste management and remediation services | 3 |
61 | Educational services | 3 |
62 | Health care and social assistance | 4 |
71 | Arts, entertainment, and recreation | 3 |
721 | Accommodation | 1 |
722 | Food services and drinking places | 2 |
81 | Other services | 4 |
Class 8 | Subclasses | |
23 | Construction | 8.1 |
482 | Rail transportation | 8.2 |
517111 | Wired telecommunications carriers | 8.3 |
517112 | Wireless telecommunications carriers (except satellite) | 8.3 |
517122 | Agents for wireless telecommunications service | 8.3 |
5241 | Insurance carriers | 8.4 |
5242 | Insurance brokers for non-admitted insurance carriers | 8.4 |
713120 | Amusement parks and arcades | 8.51 |
713290 | Nonpayout amusement machines | 8.62 |
713990 | All other amusement and recreational industries (pool tables) | 8.6 |
Class 9 | Optional subclasses | |
531110 | Lessors of residential buildings and dwellings | 9.9 |
Note: 2023 Class Schedule is based on a three-year average (2017 - 2019) of IRS statistical data. | ||
(Ord. 21-14, passed 12-6-21; Am. Ord. 23-15, passed 11–7-23)