The business license fee is an important revenue source for the City of Liberty and is designed to provide revenue for the general operations of the City such as public safety, recreation, public space maintenance, street lights, City street maintenance, brush & leaf removal, and administration.
Every person engaged or intending to engage in any calling, business, occupation, or profession, in whole or in part, within the limits of the City of Liberty, SC is required to pay an annual license tax for the privilege of doing business and must obtain a business license (unless an exempt category by federal or state law; for example, federal or state credit unions, certain Public Service Commissions). The requirement to obtain a business license pertains to businesses located both inside and outside the City limits when the business is provided inside the City limits.
Kaitlyn McBriar: Business License and Hospitality Tax
City of LibertyNo online payment is currently available; however, card payments may be made at City Hall or by phone (for phone payments, there is a $5.00 fee).
2 Important Changes to the Business License Process (December 2019)
On December 10, 2019, City Council approved 2 important changes to the business license process. First, the business license year has changed from a calendar year to a May 1st through April 30th license year. Anyone holding a 2019 business license will automatically be licensed through April 30, 2020, at no additional charge. Secondly, a reduced rate was created for contractors who do smaller jobs within the City. For contractor jobs less than $2,000, the base rate will be $25.00 regardless of whether the contractor is within the city or outside the city. Once the contractor does more than $2,000 of business in a license year, the normal base rate will apply.
New Business
A Business License form and associated fee must be completed and submitted before you open your business in the City of Liberty, SC. The fee for a new business shall be computed on the estimated probable gross income stated in the license application for the balance of the license year.
Renewal Instructions
A Business License form must be completed and submitted on or before April 30th of each year.
For the City of Liberty, business licenses are issued for a twelve-month period from May 1st through April 30th and the business license fee is based on the gross receipts of the business from the previous calendar year and must reflect the gross receipts reported on your federal and state income tax returns and your state sales tax returns (if applicable).
If the business was not in operation for the full twelve months of the previous calendar year, estimate your twelve-month projected income based on the monthly average for the business. Business owners are responsible for updating their business license application/fee if their actual gross receipts are more than 5% of the initial estimate.
if your business files your tax returns to the Internal Revenue Service/SC Department of Revenue on a fiscal year basis that is different than a calendar year, you may use your fiscal year as the basis for your business license fee. If so, please make a note of this on the application.
Renewal forms are due April 30th of each year (late penalty is 5% per month and includes partial months).
Definition of Gross Receipts
Means the gross receipts or gross revenue of a business, received or accrued, for one calendar or fiscal year collected or to be collected from business done within the Municipality, excepting therefrom income earned outside of the Municipality on which a license tax is paid by the business to some other municipality or a county and fully reported to the Municipality. Gross income for agents means gross commissions received or retained unless otherwise specified. Gross income for insurance companies means gross premiums written. Gross income for business license tax purposes shall not include taxes collected for a governmental entity, escrow funds, or funds that are the property of a third party. The value of bartered goods or trade-in merchandise shall be included in gross income. The gross receipts or gross revenues for business license purposes may be verified by inspection of returns and reports filed with the Internal Revenue Service, the South Carolina Department of Revenue, the South Carolina Department of Insurance, or other government agencies.
Contractors Outside the City
Contractors whose business is located outside the City but may do business inside the City sometime during the license year may file for a business license before the construction job occurs rather than during the renewal period.
Verification of Gross Receipts
In an effort to ensure fairness to all businesses and the City, the City may verify gross receipts for business license purposes with the South Carolina Department of Revenue (sales & income tax) and/or the Internal Revenue Service and may require businesses to submit their federal and/or state tax forms for verification.
We thank you for being a part of the City of Liberty, SC.