In South Carolina, only local governments levy property taxes. There is no state tax on real or personal property.
The Fee-in-Lieu of Property Tax is the most valuable incentive that can be offered by Sumter County. It allows the county and the manufacturer to negotiate a decrease in its assessment ratio, which is 10.5% before incentives. The assessment ratio can be reduced down to as low as 6%, and generally depends on the level of investment. The FILOT not only offers substantial tax savings for new investment, but also offers eligible companies built-in tax predictability.
The FILOT is offered to both new companies and existing industries investing capital in Sumter County. The minimal investment threshold is $2.5 million and the incentive can be awarded for up to 20 years. All aspects of the FILOT remain at the discretion of Sumter County Council.
The FILOT generally allows a company to reduce its local property tax burden by 30-45%.
Sumter County is committed to fostering economic growth through an aggressive economic development program of work. All incentives are discretionary and will be reviewed on individual merit and determined by the needs of the project.
Local Property Tax Formula
Value x Assessment Ratio x Millage = Property Tax
- Valued determined --
- For personal property = Cost less Depreciation (as allowed by statute or regulation)
- For real property = Appraised Value
- Depreciation -- (set by law) generally 11% annually to 10% of original value
- Assessment --
- Manufacturers: 10.5% for both real and tangible personal property
- Other businesses: 6% for real property and 10.5% for tangible personal property
- Millage Rate -- ($.001) set by local government