Business License Tax Standardization Act

The General Assembly passed Act 176, SC Business License Standardization Act, in September 2020.

Act 176 streamlines the business license process, creating the same process for taxing jurisdictions across the state.

For many years, businesses raised concerns with legislators about the inconsistencies and complicated processes found around the state among local governments that collect business license taxes. Legislators came together with the business community and municipalities to remedy the issues and passed Act 176.

Act 176 requires every local government with a business license tax to administer the tax in the same way across the state starting January 1, 2022.

No, the Town will update your business license as required by law with the adoption of the standard business license ordinance.

Town of Hilton Head Island plans to adopt the standard business license ordinance in September 2021.

No, the Town uses the standard due date of April 30th each year.

No, the Town has always practiced the standard method for reporting business license revenue.

You will continue to use your gross income from the prior calendar year or business fiscal year to calculate your business license tax.

Your standard business license class schedule is determined by your North American Industry Classification System code, or NAICS code.

Your business license rate is determined by the standard business license class schedule adopted by the SC Revenue and Fiscal Affairs Office every odd-numbered year.

Town Council establishes the business license rates for the class schedules.

Yes, your business license rate will change due to the requirements of the law to standardize the business license process across the state.

Your new rate will be effective for your 2022 business license renewal year.

The new business license rates will be available on the Town's website after the adoption of the business license ordinance planned in September 2021.

Yes, all property owners that rent a property will require a business license. This includes all short- term rentals and long-term rentals.

The standard business license ordinance does not allow any exemptions for property owners that rent their property.

You will need to submit a business license application to Revenue Services to obtain a business license.

The application can be emailed to RS@hiltonheadislandsc.gov or mailed to the Town of Hilton Head Island, 1 Town Center Court, Hilton Head Island, SC 29928.

The Town encourages you to submit your application sooner rather than later.

Additional Revenue Services staff will be dedicated to process your application in 2021 and will mail your business license payment form to you in January 2022.

The Town encourages you to educate your property owners of the new business license requirements for 2022.

To help you coordinate communication efforts with your property owners please email the Revenue Services at RS@hiltonheadislandsc.gov or call 843-341-4677.

You can go online to SC Legislature at www.scstatehouse.gov and search "A176" for a copy of the law.