South Carolina’s House Ways and Means Committee has given a favorable report to H.5006, the State of South Carolina Small Business Tax Cut of 2026, moving it closer to a full House vote.
The bill would exempt the first $10,000 of net depreciated value of business personal property owned by small businesses — everyday items like desks, chairs, computers, and equipment that are currently taxed annually even after sales tax was paid at purchase.
For the estimated 4,200+ small businesses in Spartanburg County that employ fewer than 100 people, this translates to immediate savings on annual property tax bills. The exemption targets businesses with gross annual sales under $10 million that are independently owned and operated.
NFIB State Director Ben Homeyer said: “Small business owners already pay sales tax when they buy these items. Paying property taxes on the same equipment year after year makes it harder to invest and grow.”
The bill now moves to the full House for a vote. If passed, it would take effect for the business licensing year beginning May 1, 2026.
