How are South Carolina counties ranked for the job tax credit for 2011, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #11-4)?

Plain-English summary

This Information Letter publishes South Carolina's 2011 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 annually based on unemployment rate and per capita income, given equal weight; the least-developed counties support the largest per-job credit.

Because the General Assembly amended the job tax credit statute (§ 12-6-3360) in 2010, the letter contains two ranking lists:

• Ranking List #1 — new designations and credit amounts: counties are ranked as Tier IV, Tier III, Tier II, and Tier I, used for new full-time jobs under the amended statute.
• Ranking List #2 — for transition purposes: counties keep the pre-amendment designations — "distressed," "least developed," "under developed," "moderately developed," and "developed" — for increases in new full-time jobs still computed under the special rules in § 12-6-3360(B) and (L) as they existed before the 2010 amendment.

The same per capita income and unemployment measures determine which counties qualify for the tax moratorium (§ 12-6-3367) and for the reduced minimum investment under the fee in lieu of property taxes (§§ 12-44-30, 4-12-30, 4-29-67).

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 appropriate ranking list — List #1 if you are under the amended rules, List #2 if you are still in transition under the old rules — to determine your tier/designation and per-job credit amount. If you are negotiating a fee in lieu of property taxes or seeking the tax moratorium, use these lists to confirm your county qualifies.

Common questions

Q: How are the counties ranked?
A: By unemployment rate and per capita income given equal weight, producing Tier IV (least developed, largest credit) through Tier I designations in List #1.

Q: Why are there two ranking lists?
A: The job tax credit statute was amended in 2010. List #1 uses the new Tier designations; List #2 keeps the older "distressed / least developed / under developed / moderately developed / developed" names for transition purposes.

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.

Subject

Job Tax Credit - County Rankings for 2011 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/IL11-4.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 #11-4
SUBJECT:

Job Tax Credit - County Rankings for 2011
Fee in Lieu of Property Taxes – Reduced Investment Counties
Tax Moratorium – Qualifying Counties

DATE:

February 22, 2011

REFERENCE:

S. C. Code Ann. Section 12-6-3360 (Supp. 2009 and 2010)
S. C. Code Ann. Section 12-6-3367 (Supp. 2010)
S. C. Code Ann. Section 12-44-30 (Supp. 2010)
S. C. Code Ann. Section 4-12-30 (Supp. 2010)
S. C. Code Ann. Section 4-29-67 (Supp. 2010)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2000)
SC Revenue Procedure #09-3

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 now ranked and designated annually for job tax credit purposes
with equal weight given to unemployment rate and per capita income. Because of amendments in
the job tax credit statute in 2010, it is necessary to have two rankings of South Carolina’s
counties for purposes of the job tax credit.

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Ranking List #1 – New County Designation Names and Credit Amounts: For new, full time
jobs created in tax years that begin in 2011, where the job tax credit was first earned on or
after January 1, 2011, and increases in such jobs. As required by statute, the Department has
ranked South Carolina’s counties as “Tier IV,” “Tier III,” “Tier II,” and “Tier I” for computation
of the new job tax credit with equal weight given to unemployment rate and per capita income.
TIER IV

TIER III

TIER II

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

Abbeville
Cherokee
Chester
Colleton
Darlington
Fairfield
Greenwood
Hampton
Laurens
Orangeburg
Sumter
Union

Anderson
Calhoun
Edgefield
Georgetown
Horry
Jasper
Newberry
Oconee
Pickens
Spartanburg
York

TIER I
Aiken
Beaufort
Berkeley
Charleston
Dorchester
Florence
Greenville
Kershaw
Lexington
Richland
Saluda

Ranking List #2 – For Transition Purposes: For increases in new, full time jobs created in
tax years that begin in 2011, where the job tax credit was first earned before January 1,
2011. As required by statute, the Department has ranked South Carolina’s counties as
“distressed,” “least developed,” “under developed,” “moderately developed,” and “developed”
for computation of the new job tax credit based on unemployment rate and per capita income and
then adjusted in accordance with applicable special rules in South Carolina Code Sections 12-63360(B) and 12-6-3360(L), as they existed prior to the amendment of Code Section 12-6-3360
effective January 1, 2011.

DISTRESSED
Allendale
Bamberg
Barnwell
Chesterfield
Clarendon
Dillon
Lancaster
Lee
Marion
Marlboro
McCormick
Williamsburg

LEAST
DEVELOPED

UNDER
DEVELOPED

MODERATELY
DEVELOPED

Abbeville
Cherokee
Fairfield
Greenwood
Hampton
Laurens
Orangeburg
Union

Calhoun
Chester
Colleton
Darlington
Edgefield
Georgetown
Horry
Jasper
Pickens
Sumter

Anderson
Beaufort
Newberry
Oconee
Saluda
Spartanburg
York

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DEVELOPED
Aiken
Berkeley
Charleston
Dorchester
Florence
Greenville
Kershaw
Lexington
Richland

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 an 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 2011, the following counties have been designated moratorium counties under South
Carolina Code Section 12-6-3367.
Allendale
Barnwell
Marlboro

FEE IN LIEU OF PROPERTY TAXES - Reduced Investment Counties
The minimum required investment necessary to qualify for the fee in lieu of property taxes is
$2.5 million for the “Little Fee” and “Simplified Fee,” and $45 million for the “Big Fee.” See
South Carolina Code Sections 4-12-30(B)(3), 12-44-30(14), and 4-29-67, respectively. 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 2011, no county qualifies for the $1 million minimum investment under the “Little Fee,”
“Simplified Fee,” and “Big Fee.”

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