Taxes and Infrastructure

Taxes and Incentives

Corporate Income Tax
At 5%, South Carolina has the lowest corporate income tax rate in the Southeast, and one of the lowesr in the nation.  The starting point in determinating South Carolina taxable income is the corporation’s feral taxable income.  The license fee is .001 of the corporation’s capitalization, plus $15.00.  The corporation’s capital Stock and p[aid in surplus are subject to this tax.  The minimum license fee us $25.00 and is paid in advance. 
 
Corporate Income Tax Credits
  Tax credits for new jobs
  Tax credits for corporate headquarters facilities
  Tax credits for investment in infrastructure
  No unitary taxes on worldwide profits
 
Sale and Use Tax
Sales tax is imposed on the sale of goods and certain services in South Carolina.  The statewide sales tax is 5%.  An additional 1% optional sales tax, which is applied to public education, is imposed in Cherokee County. 
 
Exemptions on Sales Tax
  Exemptions on manufacturing equipment and electricity
  No wholesale sales taxes
  No value-added taxes
 
Property Tax
Property tax is administered and collected by local governments with assistance from the South Carolina Department of Revenue.  Real and personal property are subject to the tax.  Approximately two-thirds of the county levied property taxes are used in the support of public education.  Municipalities impose a tax on property within th elimits of the municipality for services provided by the municipality.  Each class of property is assessed at a ratio unique to that type of property to determine the assessed value of the property. Each county, municipality, school district, and other tax district then applies its millage rate to the assessed value to determine the tax due.  The millage rate is equivalent to the tax per $1,000 of assessed value.  For example, if the millage rate is 200 mills and the assessed value of the property is $1,000, the tax on that property is $200.  
 
Exemptions on Property Tax
  No inventory taxes
  No intangibles taxes
  No tax on pollution control equipment
  Five year moratorium on county ordinary property taxes for manufacturing, distribution, corportate headquarters, and office facilities. 
 
Individual Income Tax
South Carolina has tiered income with 2000 rates as follows:
  2.5% on net income up to $2,250
  3.0% from $2,251 – $4,500
  4.0% from $4,501 – $6,750
  5.0% from $6,751 – $9,000
  6.0% from $9,001 – $11,250
  7.0$ on all income above $11,250
 
The basis for state taxable income is the federal taxable income.  Most deductions, adjustments, and exemptions allowed on federal returns flow through to the state return. 
 
Contact the Cherokee County Development Board for more details on taxes, incentives, and infrastructure.

Transportation

Air Traffic
  Charlotte Douglas International Airport within 45 miles
  Greenville/Spartanburg International Airport within 45 miles
 
Motor Freight
  45 freight carriers serving the area
  One day delivery to Atlanta
  Three day delivery to Chicago and Houston
  Four day delivery to New York and St. Louis
  Five day delivery to San Francisco
 
Highways and Interstates
  I-85 and I-26
  US-29
  SC-5, SC-11, SC-18, SC-105, and SC-150
 
Port of Charleston
  Largest container port on Southeast and Gulf Coasts

Utilities

Electric Power Service
  Broad River Electric Cooperative, Inc.
  Duke Power, a Duke Energy Company
  Gaffney Board of Public Works
 
Average price per kilowatt hour range from approximately 4.5 cents to 4.9 cents– Economic Development rates are available to customers who qualify. 
 
Natural Gas Service
  Blacksburg Area — Town of Blacksburg
¬† Gaffney Area — Piedmont Natural Gas (www.piedmontng.com)
 
Water Service
  Blacksburg Area — Town of Blacksburg (Average prices are between $2.00 and $4.00 per 1000 gallons). 
  Gaffney Area — Gaffney Board of Public Works (Average prices are between $0.65 and $1.41 per 1000 gallons).
 
Sewer Service
  Blacksburg Area — Town of Blacksburg (Average price is $3.50 per 1000 gallons).
  Gaffney Area — Gaffney Board of Public Works (Average price between $1.75 and $2.32 per 1000 gallons).
 
Telephone Service
  Local area service– Bell South
  Long distance service — AT&T, MCI, US Sprint

Cherokee County Development Board
225 South Limestone Street
Gaffney, SC 29340
864-489-5721