Ways and Means committee advances small-business personal-property exemption

Representative Brandon Newton opened the committee’s agenda with House Bill 5006, described in his presentation as the “South Carolina small business tax cut of 2026.” The bill would exempt the first $10,000 of business personal property from taxation for businesses with fewer than 100 employees or under $10 million in annual sales, Newton said.

Newton told members the committee adopted an amendment to correct residency language in the original text so it would be constitutional. “The committee amendment is just correcting that language,” Newton said during his presentation. The chair put the subcommittee amendment to a voice vote, and the panel adopted it.

Representative Rutherford raised a question about a fiscal impact note that had a separate entry from Richland County; Newton said the Association of Counties had testified at the hearing and was not opposed, and that Richland’s separate statement likely reflected its large amount of untaxed government property. Newton offered to follow up with Rutherford on the details.

The clerk conducted a required roll-call vote on a favorable report. Members recorded their votes and the chair announced a vote of 21 to nothing; the committee gave House Bill 5006 a favorable report. A member was noted as having leave during the roll call. No further amendments or conditions were recorded in the committee meeting.

The favorable report moves the measure out of committee for the next steps in the legislative process. The committee completed consideration of the bill and proceeded to the next item on the agenda.