Council adopts first reading of state-mandated business-license schedule update

Anderson City — The Anderson City Council approved on first reading an update to the city's business-license class schedule required by South Carolina Act 176, which standardizes retail business-license classes using the North American Industry Classification System (NAICS).

Margaret Martin, the city’s chief financial officer, told the council the state released updated NAICS data for 2025 and municipalities must adopt the revised schedule every two years. The changes leave most retail categories unchanged, move transportation and warehousing (including towing services and delivery services) up one class, and move several professional and health-care categories down one class. “Based on the 2025 class schedule, the estimated potential financial impact would be a reduction of $119,000 in our annual business-license revenue,” Martin said.

Martin said staff considered the estimated loss during the current fiscal-year budget and recommended no increase to business-license fees. Council members asked clarifying questions about class counts, mandated class 8 (contractors) and discretionary class 9 (bars, car dealerships, nursing homes), exemptions (banking handled by the state) and the role of franchise fees for utilities. The municipal association’s new online portal and standardized classes were described as simplifications for businesses that operate in multiple jurisdictions.

Council moved and approved the ordinance amendment on first reading by voice vote. Staff said the change has been budgeted for the current fiscal year and will be reflected in the city's revenue planning.