HBASC INITIATIVES I. H. 3650 -Business License Reform
Chairman Bill Sandifer (R-Oconee).

Sponsor: Representative Bill Sandifer (R-Oconee) Co-Sponsors: Reps. Anderson, Atwater, Bedingfield, Erickson, Forrester, Hamilton, Jordan, McEachern, Ryhal, Simrill, Tallon, Taylor and White. PASSED, HOUSE LCI COMM.

Unfortunately, H. 3650 was recalled to LCI from the House floor.

The HBASC and our trade association partners have worked for years to improve the business license environment in South Carolina. Our members have expressed significant concerns with the current system, and have approved this issue as the HBASC’s number one priority this session. Chairman Bill Sandifer of the

House Labor, Commerce and Industry Committee introduced H. 3650 that includes many changes to the current business license tax system that provides more than $300 million annually to county and local municipalities. Our bill would help provide responsible administration to a fee that continues to grow an average of almost 5% yearly and silently cost every S. C household more than $500 a year.

The Bill Provides:

• The business license tax will be computed based on adjusted gross income;

• Directs the Secretary of State to operate an on-line portal and will be in charge of standardizing business license tax forms;

• Ensures certificate of occupancies cannot be withheld because

a subcontractor has not paid a business license tax;

• Removes the “stacking of fees” on all trades on a house;

• The Secretary of State determines the new Business License Class Schedule; and

• Counties and municipalities can adopt a sub-classification but must provide advance notice of 7 days before holding a public meeting regarding a new subclass.

The HBASC is appreciative of the Chairman’s efforts to reform, update, and standardize the current business license tax system. We will continue working with him and the members of the LCI Committee to bring this bill to the House floor for consideration in 2018.