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December 2016
Aaron Scheuer Joins HSB
 
Haynsworth Sinkler Boyd is pleased to announce that Aaron Scheuer has joined the firm and will be working with the Economic Development and Tax Groups. Aaron previously worked at the South Carolina Department of Revenue. While at DOR, Aaron worked in the Department's Policy section providing formal and informal guidance to taxpayers and Department personnel regarding state tax matters and Department administrative practices. Prior to joining the Department's Policy section, Aaron worked as an attorney in the Department's Litigation section, representing the Department before the Administrative Law Court in its tax and alcohol beverage licensing matters.

Aaron holds an LL.M. in Taxation from Georgetown University Law Center, and received his J.D. from the Charleston School of Law and B.A. from the University of Virginia.
County Tiers Set for 2017 for Job Tax Credits and Job Development Credits

South Carolina's 46 counties are annually designated as being within one of four "tiers" for job tax credit and job development credit purposes based on a county's unemployment rate and per capita income. The SC Department of Revenue has published the new "tier" designations for South Carolina counties. The following counties received a new tier designation:

County
2016 Tier
2017 Tier
Calhoun
2
3
Chester
3
4
Dorchester
1
2
Edgefield
2
3
Lancaster
3
2
Newberry
2
1
Saluda
1
2
Spartanburg
2
1
Sumter
3
2

If a project is considering a county which is moving up a tier, contact a member of the Haynsworth Sinkler Boyd economic development team to "lock in" the more advantageous 2016 tier designation before December 31, 2016.
  
The following is a complete list of counties and their respective Tier for 2017:
 
For more information on how job development credits and job tax credits work generally, please see the Haynsworth Sinkler Boyd economic development team's overviews, available here:

SC DOR Property Tax Guidance for Manufacturers

On December 16, 2016, the South Carolina Department of Revenue issued SC Revenue Ruling #16-12 , providing guidance on the return, assessment, and payment of property taxes for manufacturers' property. In South Carolina, manufacturers' property is valued and assessed by the Department of Revenue. Generally, returns for manufacturers' property must be filed with the Department on or before the last day of the fourth month after the close of the manufacturer's income tax year. The return must list the real and personal property owned by the manufacturer on the last day of the manufacturer's income tax year.
  
SC Revenue Ruling #16-12 is divided into several parts: a brief discussion of general property tax rules; general rules for the return and assessment of manufacturers' property; rules for when manufacturers' property is placed in service after the end of the manufacturer's income tax year; special rules for when manufacturers' property is sold during the calendar year; rules for when a manufacturer begins operations in South Carolina; rules for when a manufacturer ceases operations in South Carolina; and rules for when a manufacturer has more than one income tax year end during the calendar year.
  
Revenue Ruling #16-12 is a great resource for manufacturers to consult in addressing any South Carolina property tax issues.  Please contact a member of the HSB Economic Development Team if you have any questions.
Pre-filed Legislation of Interest

Solar Farm Property Tax Exemptions

Two bills have been prefiled in the South Carolina House ( H.3079) and Senate ( S.44) to allow for the exemption of 80% of the fair market value of a "distributed energy resource," which includes solar farms.  The bills provide an exemption for qualifying property that became operational after property tax year 2012.  For qualifying property that became operational in property tax year 2013 or 2014, the exemption applies so long as the property is not subject to a fee in lieu of taxes (FILOT) agreement as of December 31, 2014.  For qualifying property that became operational in property tax year 2015 or 2016, if the property is subject to a FILOT agreement, the taxpayer can elect the exemption as long as the taxpayer notifies the other parties of the election no later than 30 days after the effective date of the law.

South Carolina Commercial Property Assessed Clean Energy Act (C-PACE)

H.3304 provides for the establishment of an assessment district by a local government allowing the imposition of voluntary assessments against commercial property to finance clean energy improvements in the district.
Happy Holidays from the HSB Economic Development Team!

www.hsblawfirm.com | Charleston | Columbia | Florence | Greenville | Myrtle Beach

Edward G. Kluiters, Economic Development Group Leader | 1201 Main Street, 22nd Floor, Columbia, SC 29201