A new bill introduced to the General Assembly last week proposes major changes to South Carolina’s Business License Tax.

The Business License Tax Reform Act affects cities across the state. Currently, each municipality is in charge of its own licensing rates. In Myrtle Beach, the amount varies based on a business’ gross income rate. The new bill proposes that a uniform tax rate of no more than $100 be placed on all businesses.

According to Spokesperson Mark Kruea, Myrtle Beach receives $19.1 million in business license fees. If the bill goes through, that amount will drop to $500,000 annually.

 “How do you cut 19 million dollars worth of service that’s the real question,” said Kruea.

He said the changes will lead to massive cuts or a massive deficit in the city’s budget. An existing law prohibits the city from increasing the property tax by more than 3.8 mills, so Kruea said the funds would have to come out of city services.

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http://www.wbtw.com/story/28076720/new-bill-proposes-uniform-tax-rate-on-business-licenses