Hello REALTORS®,
Last week I reported on the several new government officials and leaders as the federal and state levels, as well as some of the new local leaders. This week, I will report on those I didn’t cover last week: school boards, certain countywide offices, a few special purpose districts we monitor, and 2 city councils. And read to the end about an updated report on business license rules and taxes.
Solicitor for Anderson and Oconee counties
The Solicitor is the name that South Carolina uses for the district attorney or prosecutor. Anderson and Oconee counties, which makes up the 10th District in South Carolina’s court system, share a Solicitor, and a new one took office in January: Micah Black, a Republican. He replaced David Wagner, who retired.
Anderson County
Clerk of Court: Reena Thomason, Republican
Sheriff: Chad McBride, Republican
Coroner: Greg Shore, Republican
Treasurer: Jason Phillips, Republican
Auditor: John Benca, Republican, Realtor
Piedmont Fire District (nonpartisan)
- Rudy F. Rhodes
- Beth Owen Dickson (new)
Homeland Park Water and Sewer District (nonpartisan)
- Jackie Harrell (new)
- Dakota Wicker (new)
Anderson County Board of Education (nonpartisan)
- Mike Upton, Dist. 2 (reelected)
- Mark Williamson, Dist. 7 (new)
- Vaughn Parfitt, Dist. 8
- David Blanding, Dist. 9
Anderson 1 School Board (nonpartisan) (Powdersville/Williamston)
- Michael Wilson, Area 2
- John JC Neel, Area 3 (new)
- Brenda Ellison, Area 6
Anderson 2 School Board (nonpartisan) (Belton/Honea Path)
- Mason Gary, Area 2
- Phil Ashley, Area 5
- DePre Keys, Area 6 (new)
Anderson 3 School Board (nonpartisan) (Starr/Iva)
- Tripp Bouknight, Area 2
- Justin Burdette, Area 3 (new)
Anderson 4 School Board (nonpartisan) (Pendleton/Central)
- Waylon Priester, Area 1 (new)
- Charles V. Privette III, Area 3
Anderson 5 School Board (nonpartisan) (Anderson)
- Troy Haguewood, Area 1 (new)
- Tommy Price, Area 3
- Paul Zugg, Area 4
- William “Tripp” Dukes, Area 7 (new)
- Bill Thompson, At Large (new)
Williamston City Council (nonpartisan)
- Rockey Burgess, Mayor
- David Rogers, Ward 3 (new)
- Chris Alexander, Ward 4
Oconee County
Clerk of Court: Melissa C. “Lisa” Burton, Republican
Sheriff: Mike Crenshaw, Republican
Coroner: Karl E. Addis, Republican
Treasurer: Gena Acree, Republican (new)
Auditor: Christy W. Hubbard, Republican
Keowee Fire District (nonpartisan)
- William L. “Bill” Robertson
Oconee County School Board (nonpartisan) (countywide)
- Meghan Ketterman, Dist. 2
- Denise McCormick, Dist. 4
- Terry Swain, Dist. 5 (new)
Pickens County
Clerk of Court: Harold Pat Welborn, Republican
Sheriff: Tommy Blankenship, Republican (new)
Coroner: Andrew Wilson, Republican (new)
Treasurer: Dale Looper, Republican
Auditor: Brent Suddeth, Republican
Pickens County School Board (nonpartisan) (countywide)
- Betty Bagley, Dist. 1
- Shannon Haskett, Dist. 3
- Betty Garrison, Dist. 5
Clemson City Council (nonpartisan) (all council seats are at large)
- Robert Halfacre, Mayor
- Alma Evans (new)
- Adam Jones (new)
- Windsor Sherrill (new)
Business Licenses
Most cities in South Carolina (and some counties) require a business license to conduct business in their city. Nearly all of them impose a business license tax as well, and the tax is not insignificant. In fact, most cities receive a substantial portion of their revenue, sometimes as high as 30%, from business license taxes.
What the law says (and how it helps Realtors)
Business licenses and taxes are allowed under state law, but local ordinances also must comply with state law. That law was updated in 2022. The legislation, which your REALTORS® Association supported, simplified business licenses for Realtors and potentially reduced the amount due.
Beginning January 1, 2022, the business license tax for a real estate brokerage is paid only by the broker, not the broker’s agents. In addition, the broker pays the tax only on the revenue they keep, not what they distribute to their agents or other brokers. Therefore, if a broker collects and passes through revenue to another business, that revenue belongs to the other business and is not subject to tax.
The result of that legislation was even better for real estate agents. Agents, you are exempt from the business license—only your broker is required to have a business license. That statute says this:
- Section 4-9-30 (12) and 5-7-30 (B)(1) Notwithstanding any other provision of law, the governing body of a county or municipality may not impose a license, occupation, or professional tax or fee upon real estate licensees, except upon the broker-in-charge at the place where the real estate licensee shall maintain a principal or branch office. The license, occupation, or professional tax or fee shall permit the broker-in-charge and the broker’s affiliated associate brokers, salespersons, and property managers to engage in all of the brokerage activities described in Chapter 57 of Title 40 without further licensing or taxing, other than the state licenses issued pursuant to Chapter 57 of Title 40 or pursuant to other provisions of law. No license, occupation, or professional tax or fee shall be required of the affiliated associate brokers, salespersons, or property managers of a broker-in-charge for such gross receipts upon which a license, occupation, or professional tax or fee has already been paid.
There are two more important points to know about business license taxes:
- If your business is located where business license taxes are not collected, you may still be required to pay business license taxes in a city or county that collects the tax if you do business there. However, you will only be taxed on the revenue you receive from doing business in that city.
- If your business is located where business license taxes are collected, brokers may be required by that city to pay the business license tax on the full revenue of your business. But remember that your revenue is what you keep, not what you collect for your agents or other brokers and pass on to them. And if a portion of your business’ revenue was taxed by another city, you can exempt that revenue from the tax you pay where your business is located. In other words, two cities can’t tax the same revenue.
Both points demonstrate the importance of keeping detailed records of your business’ revenue if you are doing business in multiple cities.
It’s also important to note that if you are doing business in a city that requires a business license, you should get a business license and pay any relevant taxes. If you don’t, you should expect to receive a demand letter from the city. Posting a real estate sign is visible evidence that you are doing business in a city.
Your Association is Advocating for You
The business license law that took effect in 2022 is not without its detractors. The City of Mauldin has filed a legal challenge to the law. The SC Association of REALTORS® has successfully petitioned the court to intervene as a defendant in that lawsuit, which means they will be defending the 2022 business license law on behalf of Realtors statewide.
Support RPAC
Our success in government affairs relies on elected officials who are friendly and supportive of real estate. Through RPAC, we support pro-real estate candidates who understand the importance of a vibrant economy for real estate. Supporting RPAC is easy. Your association includes a voluntary contribution to RPAC on your annual dues invoice. Pay it, and you are an RPAC supporter. If you haven’t supported RPAC this year, I encourage you to do so by clicking here.
Michael Dey, Director of Government Affairs