During 2025, cities and towns with local business licensing need to pass their new business license class schedule for 2026. For the remainder of this year, they will continue using their current class schedule.
Regularly adopting a new business license class schedule is part of the ongoing steps that municipalities must undertake to stay compliant with the Business License Tax Standardization Act of 2020, or Act 176. Legislators intended for Act 176 to streamline business licensing, making it uniform and consistent for businesses operating in multiple jurisdictions across South Carolina. The legal requirements aim to ensure that the licensing process works the same for the business, no matter the jurisdiction involved.
Every odd-numbered year, cities must update their class schedules to comply with the most recent statistical profitability data from the Internal Revenue Service.
Updating the class schedule
A standard class schedule for accurately categorizing businesses helps ensure that businesses are placed in the appropriate class. A standardized class schedule promotes clarity by providing businesses with their licensing requirements based on their specific business activity.
To make updating the class schedule as simple a task as possible, the Municipal Association of SC developed an amendment to the model business license ordinance that includes the updated standard class schedule.
Municipalities must adopt this class schedule by ordinance by December 31, 2025. This class schedule will be used for the business licensing year running from May 1, 2026, to April 30, 2027, as well as the license year running from May 1, 2027, to April 30, 2028.
Before January 1, 2026, cities should not use this updated class schedule, and should instead continue using their current class schedule.
The Municipal Association of SC provides a sample ordinance for every update. Municipalities must adopt this class schedule by ordinance every two years, with the next update required by December 31, 2027.
The Association also has a webpage that gathers together all of its business licensing resources, including these:
- An explanation of state law – This includes the full text of Act 176 and a one-page summary of it.
- The Association’s primary training and guidance resources – Municipal staff throughout the state take advantage of the meetings and networking of the SC Business Licensing Officials Association. The Business License Handbook is a reference for every aspect of the process.
- Updated schedules for the model business license ordinance and North American Industry Classification codes – Act 176 requires regular updates of both of these.
- Sample documents – This includes an appeals and assessment process, notices of assessment and appeal, and the standard business license application.
- Training videos for the Local Business License Renewal Center – Act 176 requires local jurisdictions to use the online renewal portal.
- Resources for businesses – This includes frequently asked questions as well as a list of those cities and counties that require a business license.