Lexington County business leaders are concerned about the impact of taxes.

They pay more because of a state law exempting homeowners from some property taxes.

They pay business taxes in most municipalities but not in the county.

The Town of Lexington recently lost a technology company, Diesel Laptops in Gilbert, to the Town of Irmo.

Company CEO Tyler Robertson said they decided not to buy the former Lexington State Bank data center on Reid Avenue.

They moved to Irmo.

“One of the main reasons was the crazy Town of Lexington business tax,” he said. “When they did the math on what it would cost for us to do business inside city limits, it was around $40,000 and that was using last year’s revenue numbers.

“This year it would have been $60,000 or more.

“We asked what we received for that extra tax, and they told us 3 things – police protection, fire protection and local restaurants.”

The town provides police protection, but the county provides fire protection.

Lexington Mayor Steve MacDougall said, “We never had the opportunity to actually determine the amount of the business license because they never came in for meetings with our business license specialist to determine the true amount.”

Town Adminisrator Britt Poole questioned the $60,000 figure but said license fees on manufacturing are complicated, based on more than sales revenue.

“Avtech moved here from Gilbert after looking at Richland County’s license taxes.

“Business license revenue pays half our costs,” he said.

“Without it, we would have to raise property taxes or cut half of what the town offers, including police.”

Robertson said, “I don’t mind paying our fair share of taxes, but with no cap and nothing special we are getting, it was a major factor.

“We ended up finding a building in Irmo, which also has a business tax (Richland County). However, they only collect on revenue sold in South Carolina. Since we ship the world, the business tax we are good with.

“Our real estate agent, George Meetz, has the same problem with a lot of property in the town limits for the same reason.”

“It is just frustrating when government gets in the way of companies trying to do business in the town limits.”

SC Chamber of Commerce CEO Ted Pitts of Lexington is familiar with the problem.

“The business license tax is the most business unfriendly tax we have. That is why states like North Carolina have repealed theirs.

“We see local governments and local politicians use this tax as a money grab from a business that can’t vote them out of office. The license was intended to be a tool to control the types of business that operates inside a jurisdiction not a major revenue stream.”

“Diesel Laptops is a great company and an amazing American entrepreneurial story. Places like the Town of Lexington that have a business license tax are not good places for business and job creators that have a choice. Legislators need to fix the system.”