NFIB small business members Elizabeth Trenbeath and Ken Breivik, along with State Director Ben Homeyer, appeared before the Ad Hoc Committee on Economic Development and Utility Modernization to discuss reforms to South Carolina’s business personal property tax system.
They argued that the current tax structure is a significant challenge for small and mid-sized businesses in the state. “South Carolina taxes business assets such as furniture, fixtures, and equipment at an assessment rate of 10.5%, the same rate used for manufacturing and other business personal property,” Homeyer said. “This poses a heavy burden on small and mid-sized firms, discourages equipment investment and economic growth, and puts South Carolina at a competitive disadvantage compared to neighboring states.”
Homeyer also stated: “Small businesses effectively face double taxation—sales tax when purchasing equipment, followed by annual property tax. Reforms narrowing the burden on small firms and incentivizing investment would reinforce the state’s economic momentum.”
Elizabeth Trenbeath of Snell Staffing Services of the Midlands explained that under current rules, future generations could be taxed on assets purchased by previous family members. Ken Breivik, president of Nehemiah Communications in Columbia, described the existing system as a “lifetime tax” for small businesses because they never fully own their business property.
NFIB supports legislation aimed at reducing this tax burden. Homeyer referenced House Bill 3358 as a positive development. The bill proposes exempting the first $10,000 of net depreciated value from taxation each year.
Homeyer concluded that these changes would make the system fairer for small businesses while promoting modernization, investment, and job creation throughout South Carolina. He added that reforming this area will be one of NFIB’s main priorities in the upcoming legislative session.
