NFIB small business members Elizabeth Trenbeath and Ken Breivik joined State Director Ben Homeyer this morning in testifying before the Ad Hoc Committee on Economic Development and Utility Modernization, urging lawmakers to reform South Carolina’s business personal property tax system.

They told lawmakers that the state’s current structure places an unfair burden on small and mid-sized businesses.

“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.”

“Small businesses effectively face double taxation—sales tax when purchasing equipment, followed by annual property tax,” he said. “Reforms narrowing the burden on small firms and incentivizing investment would reinforce the state’s economic momentum.”

Trenbeath, of Snell Staffing Services of the Midlands, told the committee that under the current system, when her son takes over the business, he could end up paying taxes on purchases his grandmother made. Breivik, president of Nehemiah Communications in Columbia, said the existing tax is essentially a lifetime tax on small businesses because they never truly own the property in their business.

NFIB, the state’s leading small business advocacy organization, supports legislation that would reduce the tax burden, simplify compliance, and make South Carolina more competitive. Homeyer pointed to House Bill 3358, which would exempt the first $10,000 of net depreciated value from taxation each year, as a step in the right direction.

Homeyer emphasized that such changes would not only create a fairer system for small businesses but also encourage modernization, investment, and job creation across the state. He said reform would be one of NFIB’s top priorities when the Legislature convenes in January.