Business License
Businesses operating within the city limits of Walhalla are required to purchase a City of Walhalla business license. A business license is an excise tax levied on the privilege of doing business in the City of Walhalla. The license must be computed on gross income pursuant to state law without deductions. Even though it is measured by gross income, a business license is not a sales, property or income tax. South Carolina Code, Section 5.7.30 authorizes municipalities to levy a business license tax based on a business’s gross income. Business License Ordinance
Fees are based on the rate class associated with the North American Industrial Classification System (NAICS) 2017 edition. Please contact our office at 864-638-4343, ext 3 for correct classification of your business or use this link for the US Census website: https://www.census.gov/naics/.
Any business physically located within the City of Walhalla (resident business) is required to have a business license. Additionally, any business that is located outside of the City of Walhalla (nonresident business) but comes into the City to do business is also required to have a business license. If you are opening a new business, buying an existing business or transferring a business to your ownership, you will need a new business license under your name. All new businesses located within the city limits must obtain a City of Walhalla business license before opening for business.
Resident (Inside City Limits) and Non-Resident (Outside City Limits) Businesses
Resident businesses are businesses that are physically located inside the City of Walhalla and their business license fee is based on 100% of the gross income generated at their location.
Nonresident businesses are businesses that are located outside the City of Walhalla but come into the City to do business. Their business license taxes are based on gross income generated within the City.
Resident and nonresident businesses are required to obtain a business license before doing business within the City limits. The annual business license tax is based on gross income that was collected inside the City of Walhalla during the previous year. Contractors without a physical business location in the City of Walhalla have the option to obtain a “Per Job License” for projects they will be working on in the City and paying upgrades to that license for subsequent jobs in the same license year. For those who work frequently in the City of Walhalla and would like to keep an active license year to year, an annual license is also available.
All City of Walhalla business licenses expire April 30th. A 5% penalty per month will be added if not paid by May 1st on all businesses located within the City limits of Walhalla. Business owners are not exempt from a license tax simply because no notice or application was mailed to them. Every business operator is presumed to have knowledge of the law applicable to the business. Renew Business License: Walhalla now offers on-line renewal through the statewide portal.
You need to make sure you have all proper state licenses (contractor, specialty, ABC, retail licenses, etc.) prior to applying for a City of Walhalla business license. Commercial business locations need have an approved zoning permit, certificate of occupancy (CO) and pass a Fire Inspection with the City Fire Marshal prior to applying for the City of Walhalla Business License.
Confidentiality: The City of Walhalla realizes that a business’s financial information is confidential; and it is the City’s policy to keep all financial information on all business licenses confidential.
Any vendor that intends to do business directly with the City of Walhalla must submit a W-9 form.
The W-9 form provides the City with necessary information to properly report payments to the IRS.
Businesses operating within the city limits of Walhalla are required to purchase a City of Walhalla business license. This also pertains to General Contractors, Residential Contractors and Subcontractors.
Contractors and Subcontractors
Contractors and subcontractors have no basis under state law to claim an exemption from the business license tax. A contractor who claims the license fee charged for being certified by the state exempts him from municipal license fees may be charged without regard to other forms of taxation. Each municipality in which he takes a contract may collect a license fee (1950-51 Op. Attorney General pg. 198).
Subcontractors are not exempt from a business license tax even though the general contractor may pay a tax on the full contract price of a project. A general contractor cannot deduct the amount paid to a subcontractor from the gross income upon which he computes his license tax.
The contractor and subcontractor are two different people or entities engaged in two different business activities. Each is subject to a license tax based upon the gross income received.
If an owner pays a general contractor to supervise the work but pays the tradesmen or subcontractors directly, the amounts paid subcontractors would not be included in the contractor’s gross income.
If a subcontractor claims to be an employee of the contractor, he should be required to produce payroll records or W-2 withholding records to substantiate employee status. Otherwise, he is subject to a license tax as an independent contractor.
When a contractor pulls a building permit a final inspection is required before a Certificate of Occupancy is issued. The City of Walhalla requires a completed subcontractor list be submitted prior to scheduling a final inspection.
- All 1099 contractors (any person or company that is hired with a contract amount or paid hourly without deducting taxes) and any suppliers making deliveries to the address/job site must obtain a City of Walhalla business license for this address/job.
- All W-2 employees of the general contractor are covered under the general contractor’s business license.
- The subcontractor list is completed by the general contractor and turned into the City of Walhalla and the City’s Building Official.
- Subcontractor lists may be mailed, faxed, or emailed to rhelms@rciscinc.com.
