How are South Carolina counties ranked for the job tax credit for 2007, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #07-3)?

Plain-English summary

This Information Letter publishes South Carolina's 2007 county rankings for the job tax credit, plus the counties that qualify for a reduced fee-in-lieu investment threshold and for the tax moratorium. South Carolina's 46 counties are ranked and designated annually with equal weight given to unemployment rate and per capita income, then adjusted in accordance with the statute's special rules.

For 2007, the counties are designated using the traditional labels — "distressed," "least developed," "under developed," "moderately developed," and "developed" — with the most-distressed counties supporting the largest per-job credit under § 12-6-3360. (South Carolina later amended the job tax credit statute in 2010, after which the Department began ranking counties under new "Tier IV" through "Tier I" designations; this letter predates that change.)

The same per capita income and unemployment measures also drive two related incentives: the tax moratorium under § 12-6-3367 (generally a 10-year moratorium, 15 years in certain counties) and the reduced minimum investment for a fee in lieu of property taxes under §§ 12-44-30 and 4-12-30.

What this means for you

If you are creating new full-time jobs in South Carolina and claiming the job tax credit, find your county in the 2007 ranking to determine its designation and per-job credit amount. If you are negotiating a fee in lieu of property taxes or seeking the tax moratorium, use the same list to confirm your county qualifies.

Common questions

Q: How are the counties ranked?
A: By unemployment rate and per capita income given equal weight, then adjusted under the statute's special rules, producing "distressed" (largest credit) through "developed" designations for 2007.

Q: Do these rankings also affect the fee in lieu and the tax moratorium?
A: Yes. The same per capita income and unemployment measures determine which counties qualify for the tax moratorium and for a reduced minimum investment under the fee in lieu of property taxes.

Q: Why do later letters use "Tier" designations instead?
A: South Carolina amended the job tax credit statute in 2010; after that amendment the Department ranked counties as Tier IV through Tier I. This 2007 letter uses the earlier "distressed" through "developed" labels.

Subject

Job Tax Credit - County Rankings for 2007 Fee in Lieu of Property Taxes – Reduced Investment Counties Tax Moratorium – Qualifying Counties

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/IL07-3.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC INFORMATION LETTER #07-3 (Revised)

SUBJECT:

Job Tax Credit - County Rankings for 2007
Fee in Lieu of Property Taxes – Reduced Investment Counties
Tax Moratorium – Qualifying Counties

DATE:

February 5, 2007

REFERENCE:

S. C. Code Section 12-6-3360 (Supp. 2006)
S. C. Code Section 4-12-30 (Supp. 2006)
S. C. Code Section 12-44-30 (Supp. 2006)
SC Revenue Ruling #07-1

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2000)
SC Revenue Procedure #05-2

SCOPE:

An Information Letter is a written statement issued to the public to
announce general information useful in complying with the laws
administered by the Department. An Information Letter has no
precedential value.

INTRODUCTION
The job tax credit, the tax moratorium, and the reduction in the minimum required fee in
lieu of property tax investment are dependent, in part, on per capita income and
unemployment rate data received from the South Carolina Employment Security
Commission and Budget and Control Board.
The purpose of this advisory opinion is to provide the county rankings for purposes of the
job tax credit, counties qualifying for the tax moratorium, and counties qualifying for the
reduced fee in lieu of property tax.

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JOB TAX CREDIT – County Rankings
South Carolina’s 46 counties are ranked and designated annually for job tax credit purposes with
equal weight given to unemployment rate and per capita income and then adjusted in accordance
with special rules in South Carolina Code subsections 12-6-3360(B) and 12-6-3360(L), as
applicable. Because of amendments in the job tax credit statute, it is necessary to have two rankings
of South Carolina’s counties for purposes of the job tax credit.
Ranking List #1: For new, full time jobs created in tax years which begin in 2007, where the
job tax credit was first earned after June 18, 2002, and increases in such jobs, except as
otherwise indicated in the footnotes.
The Department has ranked South Carolina’s counties as “distressed,” “least developed,” “under
developed,” “moderately developed,” and “developed” for computation of the new job tax credit.
Distressed

Least Developed

Allendale
Bamberg
Barnwell
Chesterfield
Clarendon
Dillon
Hampton
Lee
Marion
Marlboro
McCormick
Williamsburg

Abbeville
Cherokee
Edgefield
Fairfield
Greenwood
Lancaster
Orangeburg
Union

Under
Developed
Calhoun
Chester
Colleton
Darlington
Georgetown
Jasper
Laurens
Pickens
Saluda
Sumter

Moderately
Developed
Anderson
Beaufort
Charleston
Florence
Horry
Newberry
Oconee 2
Spartanburg

Developed
Aiken 1
Berkeley
Dorchester
Greenville
Kershaw
Lexington
Richland
York

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Code Section 12-6-3360(B)(5)(h), added in 2006, allows Aiken County a three tier higher credit amount for
taxable years beginning in 2007 and 2008. Accordingly, a taxpayer claiming the job tax credit for jobs created in
Aiken County is allowed an increased job tax credit amount based upon the designation of “least developed” county
for the tax years beginning in 2007 and 2008 only. See Code Section 12-6-3360(B)(5)(h) and SC Revenue Ruling

07-1.

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Effective for tax years beginning after December 31, 2004, Code Section 12-6-3360(B)(5)(f) allows Oconee
County a one tier higher credit amount for a three year period beginning immediately following the year during
which one employer lost 1,500 jobs in a calendar year (i.e., 2005.) Accordingly, a taxpayer claiming the job tax
credit for jobs created in Oconee County is allowed an increased job tax credit amount based upon the designation of
“under developed” county for the tax year beginning in 2007 only. For the tax year beginning in 2008, the
designation will be one tier higher than Oconee County would otherwise qualify, and it will be published in January
2008. See SC Revenue Ruling #07-1.

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Ranking List #2: For new, full time jobs created in tax years which begin in 2007, where
the job tax credit was first earned after 1995 and before June 19, 2002, and increases in
such jobs, except as otherwise indicated in the footnotes.
The Department has ranked South Carolina’s counties as “least developed,” “under developed,”
“moderately developed,” and “developed” for computation of the new job tax credit.
Least Developed
Abbeville
Allendale
Bamberg
Barnwell
Cherokee
Chesterfield
Clarendon
Dillon
Edgefield
Fairfield
Greenwood
Hampton
Lancaster
Lee
Marion
Marlboro
McCormick
Orangeburg
Union
Williamsburg

Under Developed
Calhoun
Chester
Colleton
Darlington
Georgetown
Jasper
Laurens
Pickens
Saluda
Sumter

Moderately Developed

Developed

Anderson
Beaufort
Charleston
Florence
Horry
Newberry
Oconee 4
Spartanburg

Aiken 3
Berkeley
Dorchester
Greenville
Kershaw
Lexington
Richland
York

3

Code Section 12-6-3360(B)(5)(h), added in 2006, allows Aiken County a three tier higher credit amount for
taxable years beginning in 2007 and 2008. Accordingly, a taxpayer claiming the job tax credit for jobs created in
Aiken County is allowed an increased job tax credit amount based upon the designation of “least developed” county
for the tax years beginning in 2007. See Code Section 12-6-3360(B)(5)(h) and SC Revenue Ruling #07-1.

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Effective for tax years beginning after December 31, 2004, Code Section 12-6-3360(B)(5)(f) allows Oconee
County a one tier higher credit amount for a three year period beginning immediately following the year during
which one employer lost 1,500 jobs in a calendar year (i.e., 2005.) Accordingly, a taxpayer claiming the job tax
credit for jobs created in Oconee County is allowed an increased job tax credit amount based upon the designation of
“under developed” county for the tax year beginning in 2007. See Revenue Ruling #07-1.

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TAX MORATORIUM – Qualifying Counties
South Carolina Code Section 12-6-3367, in part, grants a 10 year moratorium (15 years in certain
cases) on corporate income taxes or insurance premium taxes for qualifying taxpayers in a
county with average annual unemployment rate of at least twice the State average during each of
the last two completed calendar years, based on the most recent unemployment rates available, or
in a county with one of the three lowest per capita incomes based on the average of the three
most recent years of available average per capita income data. The moratorium begins the first
full taxable year after the taxpayer qualifies in a county designated as a moratorium county.
For 2007, the following counties have been designated moratorium counties under South
Carolina Code Section 12-6-3367.
Allendale
Marion
McCormick
Williamsburg

FEE IN LIEU OF PROPERTY TAXES - Reduced Investment Counties
The minimum required investment necessary to qualify for the fee in lieu of property tax under
the “Little Fee,” provided in South Carolina Code Section 4-12-30(B)(3) is $2.5 million, and the
“Simplified Fee,” provided in South Carolina Code Section 12-44-30(14), is $5 million. This
investment amount, however, is reduced to $1 million for a company investing in a county with
an average annual unemployment rate of at least twice the State average during each of the last
24 months, based on data available on November 1.
For 2007, no county qualifies for the $1 million minimum investment under the “Little Fee” and
the “Simplified Fee.”

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