How are South Carolina counties ranked for the job tax credit for 2009, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #09-1)?

Plain-English summary

This Information Letter publishes South Carolina's 2009 county rankings for the job tax credit, plus the counties that qualify for a reduced fee-in-lieu investment threshold and for the tax moratorium. South Carolina's 46 counties are ranked and designated annually with equal weight given to unemployment rate and per capita income, then adjusted in accordance with the statute's special rules.

For 2009, the counties are designated using the traditional labels — "distressed," "least developed," "under developed," "moderately developed," and "developed" — with the most-distressed counties supporting the largest per-job credit. (South Carolina later amended the job tax credit statute in 2010, after which the Department began ranking counties under new "Tier IV" through "Tier I" designations; this letter predates that change.)

What this means for you

If you are creating new full-time jobs in South Carolina and claiming the job tax credit, find your county in the 2009 ranking to determine its designation and per-job credit amount. If you are negotiating a fee in lieu of property taxes or seeking the tax moratorium, use the same list to confirm your county qualifies.

Common questions

Q: How are the counties ranked?
A: By unemployment rate and per capita income given equal weight, then adjusted under the statute's special rules, producing "distressed" (largest credit) through "developed" designations for 2009.

Q: Do these rankings also affect the fee in lieu and the tax moratorium?
A: Yes. The same per capita income and unemployment measures determine which counties qualify for the tax moratorium and for a reduced minimum investment under the fee in lieu of property taxes.

Q: Why do later letters use "Tier" designations instead?
A: South Carolina amended the job tax credit statute in 2010; after that amendment the Department ranked counties as Tier IV through Tier I. This 2009 letter uses the earlier "distressed" through "developed" labels.

Subject

Job Tax Credit - County Rankings for 2009 Fee in Lieu of Property Taxes – Reduced Investment Counties Tax Moratorium – Qualifying Counties

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL09-1.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC INFORMATION LETTER #09-1

SUBJECT:

Job Tax Credit - County Rankings for 2009
Fee in Lieu of Property Taxes – Reduced Investment Counties
Tax Moratorium – Qualifying Counties

DATE:

February 6, 2009

REFERENCE:

S. C. Code Section 12-6-3360
S. C. Code Section 4-12-30
S. C. Code Section 12-44-30

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2008)
SC Revenue Procedure #05-2

SCOPE:

An Information Letter is a written statement issued to the public to announce
general information useful in complying with the laws administered by the
Department. An Information Letter has no precedential value.

INTRODUCTION
The job tax credit, the tax moratorium, and the reduction in the minimum required fee in lieu of
property tax investment are dependent, in part, on per capita income and unemployment rate data
received from the South Carolina Employment Security Commission and Budget and Control
Board.
The purpose of this advisory opinion is to provide the county rankings for purposes of the job tax
credit, counties qualifying for the tax moratorium, and counties qualifying for the reduced fee in
lieu of property tax.
JOB TAX CREDIT – County Rankings
South Carolina’s 46 counties are ranked and designated annually for job tax credit purposes with
equal weight given to unemployment rate and per capita income and then adjusted in accordance
with special rules in South Carolina Code subsections 12-6-3360(B) and 12-6-3360(L), as
applicable. The final ranking of counties for new, full time jobs created in tax years which begin
in 2009, and increases in such jobs, is listed below.

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DISTRESSED

LEAST
DEVELOPED

UNDER
DEVELOPED

MODERATELY
DEVELOPED

DEVELOPED

Anderson
Beaufort
Darlington
Florence
Horry
Newberry
Oconee
Spartanburg

Berkeley
Charleston
Dorchester
Greenville
Kershaw
Lexington
Richland
York

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Allendale
Bamberg
Barnwell
Clarendon
Dillon
Lancaster
Lee
Marion
Marlboro
McCormick
Union
Williamsburg

Abbeville
Cherokee
Chesterfield
Edgefield
Fairfield
Greenwood
Hampton
Laurens
Orangeburg

Aiken
Calhoun
Chester
Colleton
Georgetown
Jasper
Pickens
Saluda
Sumter

TAX MORATORIUM – Qualifying Counties
South Carolina Code Section 12-6-3367, in part, grants a 10 year moratorium (15 years in certain
cases) on corporate income taxes or insurance premium taxes for qualifying taxpayers in a
county with average annual unemployment rate of at least twice the State average during each of
the last two completed calendar years, based on the most recent unemployment rates available, or
in a county with one of the three lowest per capita incomes based on the average of the three
most recent years of available average per capita income data. The moratorium begins the first
full taxable year after the taxpayer qualifies in a county designated as a moratorium county.
For 2009, the following counties have been designated moratorium counties under South
Carolina Code Section 12-6-3367.
Allendale
Marlboro
Williamsburg

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For tax years beginning after 2007, a retail facility or service related industry located in a county that is under
developed and not traversed by an interstate highway may qualify for the job tax credit. For 2009, Georgetown,
Pickens, and Saluda counties meet this requirement. If the service related industry meets the requirements of a
qualifying service related facility, it may qualify in any county. See Code Section 12-6-3360.

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FEE IN LIEU OF PROPERTY TAXES - Reduced Investment Counties
The minimum required investment necessary to qualify for the fee in lieu of property tax under
the “Little Fee,” provided in South Carolina Code Section 4-12-30(B)(3), and the “Simplified
Fee,” provided in South Carolina Code Section 12-44-30(14), is $2.5 million. This investment
amount, however, is reduced to $1 million for a company investing in a county with an average
annual unemployment rate of at least twice the State average during each of the last 24 months,
based on data available on November 1.
For 2009, no county qualifies for the $1 million minimum investment under the “Little Fee” and
the “Simplified Fee.”

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