Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Business License Act 176 topic
No spam. Unsubscribe anytime.
Council adopts first reading to update business-license classes under Act 176
Summary
Anderson City Council voted unanimously on first reading to update the city's business-license class schedule to comply with South Carolina Act 176 and the state's NAICS-based classifications; staff estimates a potential $119,000 reduction in annual business-license revenue based on 2025 data.
The City Council of the City of Anderson on Sept. 22 approved on first reading an amendment to the city business-license ordinance to incorporate the state-mandated 2025 business-license class schedule under Act 176, Chief Financial Officer Margaret Martin told the council.
"Act 176 requires all taxing jurisdictions to use the same business license rate class schedule" and to classify businesses using NAICS categories, Martin said, adding that the city updates the schedule every two years as required by state law.
Martin told the council that most retail categories — including fast-food restaurants, retail and arts and entertainment — saw no class change in the 2025 update. Transportation and warehousing (towing, some delivery services) moved from class 1 to class 2. Several professional categories were reported to drop a class, including real estate and rental services and professional, scientific and technical services.
Based on the 2025 schedule, staff estimated a potential reduction in annual business-license revenue of about $119,000; Martin said staff accounted for that projection in the current fiscal-year budget and therefore did not recommend increasing license fees at this time.
Council members asked for clarifications about the class structure. Martin and staff explained that state law mandates classes 1–7 for the standard schedule and that class 8 (contractors) and certain city discretionary categories (sometimes referenced as class 9 for drinking places, car dealerships and nursing homes) are handled separately.
The council passed the amendment on first reading unanimously. Staff said funding implications were considered during budget preparation and that continued state-directed standardization is meant to reduce variance and administrative burden for businesses operating in multiple jurisdictions.
Authorities cited during the presentation included South Carolina Act 176 and the state's guidance linking NAICS data to rate classes. The council did not adopt fee increases as part of the amendment; future rate or millage decisions would be separate actions by the council.
