Lexington mayor defends business license taxes

Jerry Bellune
Posted 7/18/19

Lexington Mayor Steve MacDougall does not believe the town’s license tax discourages business.

He said 226 new businesses opened here this year.

The mayor “took issue with some of the …

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Lexington mayor defends business license taxes

Posted

Lexington Mayor Steve MacDougall does not believe the town’s license tax discourages business.

He said 226 new businesses opened here this year.

The mayor “took issue with some of the facts” presented by Lexington Chamber CEO Otis Rawl about the business license tax.

He said the Richland County’ business license law is essentially the same as the Town of Lexington’s.

Richland County bases their tax on gross revenue minus any other business license fees that may be paid under state law. he said.

The mayor was referring to a decision by a Gilbert business, Diesel Laptops, to relocate to Irmo instead of Lexington because it felt Richland County’s business taxes were lower.

The mayor said Richland County license law taxes gross income as total business revenue in the county, except sales outside the county on which a license fee was paid elsewhere.

“The town is on our 29th year [of] NOT increasing property taxes,” he said, “and during this time, Town Council has lowered the millage rate for property taxes 3 times.

“Most businesses pay less than 1% of gross revenue in business license fee, which makes nearly 50% total general fund budget equating to the operation of our award-winning Police Department.”

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