How are South Carolina counties ranked for the job tax credit for 2012, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #12-19)?

Plain-English summary

This Information Letter is South Carolina's annual county-ranking list that sets how large a job tax credit a business can claim for creating jobs in 2012, and which counties qualify for two related incentives. It covers three things: the job tax credit county rankings, the counties eligible for a reduced minimum investment under the fee in lieu of property taxes, and the counties that qualify for the tax moratorium.

How the ranking works. The job tax credit, the tax moratorium, and the reduced fee-in-lieu investment threshold all depend in part on per capita income and unemployment rate data. For the job tax credit, the Department ranks each county as Tier IV, Tier III, Tier II, or Tier I, giving equal weight to unemployment rate and per capita income. The least-developed counties are ranked Tier IV and support the largest per-job credit, while the most-developed counties are Tier I. This edition was revised on March 21, 2013 to add a second ranking list for certain taxpayers still claiming the job tax credit under the rules that existed before the statute's 2011 amendment.

Because the exact tier controls the dollar amount of the credit per new job, the operative detail is your specific county's designation — which appears in the ranking lists in the letter itself.

What this means for you

If you are creating jobs in South Carolina

Find your county in the letter's ranking list for 2012 to determine its tier, which sets the per-job credit amount under S.C. Code § 12-6-3360. A county in a more-distressed tier yields a larger credit.

If you are negotiating a fee in lieu of property taxes or a tax moratorium

Check the letter's separate lists for whether your county qualifies for a reduced minimum investment (fee in lieu) or for the tax moratorium under § 12-6-3367 — both keyed to the same income and unemployment data.

Common questions

Q: What does this letter tell me?
A: Your county's 2012 job tax credit tier (I-IV), plus whether it qualifies for a reduced fee-in-lieu investment threshold and for the tax moratorium.

Q: How are counties ranked?
A: By unemployment rate and per capita income given equal weight; the least-developed counties are Tier IV (largest credit) and the most-developed are Tier I.

Q: Where do I find my county's exact tier?
A: In the ranking lists contained in the letter — the rankings are recomputed each year, so use the 2012 list.

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL12-19.pdf

Original ruling text

State of South Carolina

Department of Revenue
300A Outlet Pointe Blvd., P. O. Box 12265, Columbia, South Carolina 29211
Website Address: http://www.sctax.org

SC INFORMATION LETTER #12-19 (Revised)
SUBJECT:

Job Tax Credit - County Rankings for 2012
Fee in Lieu of Property Taxes – Reduced Investment Counties
Tax Moratorium – Qualifying Counties

DATE:

December 17, 2012; Revised March 21, 2013

REFERENCE:

S. C. Code Ann. Section 12-6-3360 (Supp. 2011)
S. C. Code Ann. Section 12-6-3367 (Supp. 2011)
S. C. Code Ann. Section 12-44-30 (Supp. 2011)
S. C. Code Ann. Section 4-12-30 (Supp. 2011)
S. C. Code Ann. Section 4-29-67 (Supp. 2011)

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.

NOTE: This Information Letter (IL #12-19) was revised on March 21, 2013 to add “Ranking List #2 For Transitional Purposes” that provides job tax credit county rankings of each county for use by certain
taxpayers claiming a job tax credit under the rules that existed prior to the statutes amendment effective
January 1, 2011.
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 the 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 - For new, full time jobs created in tax years that begin in 2012, where the job tax
credit was first earned on or after January 1, 2012, 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

TIER I

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

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

Anderson
Berkeley
Calhoun
Edgefield
Horry
Kershaw
Newberry
Oconee
Pickens
Spartanburg
York

Aiken
Beaufort
Charleston
Dorchester
Florence
Georgetown
Greenville
Lexington
Richland
Saluda

Ranking List #2 – For Transitional Purposes: For increases in new, full time jobs created in tax
years that begin in 2012, 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 12-6-3360(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
Jasper
Laurens
Orangeburg
Union

Calhoun
Chester
Colleton
Darlington
Edgefield
Horry
Pickens
Sumter

Anderson
Beaufort
Berkeley
Georgetown
Kershaw
Newberry
Oconee
Richland
Saluda
Spartanburg
York

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DEVELOPED
Aiken
Charleston
Dorchester
Florence
Greenville
Lexington

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 2012, the following counties have been designated moratorium counties under South Carolina Code
Section 12-6-3367.
Allendale
Lancaster
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 2012, no county qualifies for the $1 million minimum investment under the “Little Fee,” “Simplified
Fee,” and “Big Fee.”

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