Manufacturing Property Tax Frequently Asked Questions:
Who is required to complete a PT-300?
The owners of all real and/or personal property of which a Fee In Lieu of Tax agreement has been negotiated with the county. The owners of all real and/or personal property owned, used, or leased* by the following businesses:
(3) Industrial Development Projects assessed under "Fee in lieu of tax" agreements under SC Code Sections 4-29-67,
4-29-69 and 12-44
(4) The following facilities that qualify for an exemption under SC Code Sections 12-37-220B(32) of 12-37-220B(34):
(a) Corporate Headquarters
(b) Corporate Office Facilities
(c) Distribution Facilities
(d) Research and Development Facilities
The owners of all real and/or personal property used by or
leased* to the following utility and transportation for hire
(1) Water, Heat, Light and Power
(3) Cable Television
(6) Private Carline
*All leased property should be reported by the owner. When leased property is capitalized by the lessee for income tax purposes, the lessee is considered the owner, in accordance with SC Revenue Ruling #93-11.
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What if I don't file a PT-300?
Failure to file in a timely manner may result in an estimated assessment, the loss of exemptions and late filing penalties, in accordance with SC Code Section 12-37-800.
When can I appeal the value of my manufacturing property?
Any taxpayer aggrieved by a new or amended value, assessment or fee may appeal by filing a "written protest" within ninety (90) days of the date of the "PROPERTY ASSESSMENT NOTICE". The valuation for the property under appeal shall be adjusted to eighty percent (80%) upon acceptance of the appeal by the Department of Revenue, pending resolution. Any valuation greater than eighty percent (80%) agreed to in writing by the taxpayer may be accepted pending resolution of the appeal. Interest at a rate established under SC Code Section 12-54-25 shall be added for the unpaid portion. Penalties may be appealed in accordance with SC Revenue Procedure #98-3.
Who can represent a taxpayer in an appeal?
Form SC2848, Power of Attorney and Declaration of Representative, must be signed by the taxpayer and the representative in order to authorize an individual to represent a taxpayer. Authorization has been restricted to attorneys, CPAs and enrolled agents. The taxpayer should consider indicating on the Power of Attorney that the representative has the authority to represent the taxpayer in property tax matters as well as income tax matters as they relate to property tax. Authorization may be extended to registered, licensed or certified real estate appraisers in questions of real property value only.
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When are Taxpayers required to file?
Returns are required to be filed not less than once each calendar year, in accordance with SC Code Section 12-37-970. Returns are normally due on or before the last day of the fourth month following the taxpayers accounting closing date used for income tax purposes. The following exceptions apply:
Initial return: The initial return is required to be filed for the first calendar year in business based on the taxpayers accounting closing date or December 31, whichever comes first. Example: A taxpayer that starts operation in July, after his June accounting closing date, should file based on assets as of Dec 31.
Change in account closing date: When a taxpayer changes his accounting closing date, within a calendar year, he must file a return for each accounting closing date. The Department of Revenue will determine the assessment from each return and use the highest assessment.
Property sold after the seller's account closing date: A return is required by the seller, based on the seller's accounting closing date. The purchaser is not required to file a return as of the purchaser's accounting closing date during the calendar year of the sale.
Property sold before the seller's account closing date: An initial return is required by the purchaser, based on the purchaser's accounting closing date or Dec 31, whichever comes first, after the purchase of the property.The PT-100 in most cases will be filed with the Department of Revenue. Service oriented business should file locally with the county.
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Can I get an extension on filing a PT-300?
Extensions are not granted for filing of property tax returns.Extensions granted for income tax purposes do not apply to property tax returns. SC Code Section 12-37-980 providing for property tax extensions was repealed.
Can I file an amended PT-300?
Amended returns may be accepted up to the due date of the return. Amended returns, filed after the due date, may be accepted or rejected by the Department of Revenue, in accordance with SC Code Section 12-37-975.
I am no longer in business, what do I do?
A final return is required after all operations have ceased or the property is sold. The filing of a final return will initiate a review of the property prior to closure. (Note: If still in operation on your accounting closing date, the "annual" return filing status should be used.) If the final return is the result of a change in ownership, complete the change in ownership section on the form PT-300. Also, complete the appropriate plant/operation schedule reporting the reason and the date of occurrence
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I file assets with Net Book depreciation, how much depreciation can I deduct?
The Gross Capitalized Cost of machinery and equipment and furniture and office equipment less income tax depreciation as used for income tax purposes. No item should be depreciated more than 90%. See SC Revenue Ruling #05-2 for State and Federal Tax Conformity and Exceptions (expenses and depreciation). Net Book values only apply to schedule B, C, D and T.
How is computer Hardware and software treated?
Manufacturing process related computer hardware and software is treated as machinery and equipment. Office related computer hardware and software is treated as furniture and office equipment. Computer hardware and software does not receive any additional depreciation.
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How do I apply for the 6% warehouse Assessment?
Application for Finished Goods Distribution 12-43-220 (a) (4) Real property owned by or leased to a manufacturer and used primarily for warehousing and wholesale distribution is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property pursuant to this item (a).For purposes of this item, the real property owned by or leased to a manufacturer and used primarily for warehousing and wholesale distribution must not be physically attached to the manufacturing plant unless the warehousing and wholesale distribution area is separated by a permanent wall.
Taxpayers are required to file form PT-465 by July 1st of the tax year requesting the special classification. See SC Code Sections 12-43-220 (a)(4) & 2 and form PT-465 for qualifications and application procedures. Requests for warehouse reclassification should be put in writing and mailed to SCDOR Manufacturing Section, PO Box 125, Columbia, SC. Please include Account Name, SID number and Property Location with the request.
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How do I apply for Idle Property assessment?
12-37-900 (Second Paragraph) A manufacturer not under a fee agreement is not required to return personal property for ad valorem tax purposes if the property remains in this State at a manufacturing facility that has not been operational for one fiscal year and the personal property has not been used in operations for one fiscal year. The personal property is not required to be returned until the personal property becomes operational in a manufacturing process or until the property has not been returned for ad valorem tax purposes for four years, whichever is earlier. A manufacturer must continue to list the personal property annually and designate on the listing that the personal property is not subject to tax pursuant to this section.
Applications should be mailed to SCDOR Manufacturing Section, PO Box 125, Columbia, SC. Please include Account Name, SID number, Property Location , local contact information and date the facility was Idle with the request.
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Which tax year return to file?
Property taxes are based on the status of the property as of the taxpayer's accounting closing date of the previous year. The taxpayer's 2003 tax year return should be based on the 2002 accounting closing date. For example, a taxpayer filing a return based on his March 2002 accounting closing date, should file his TAX YEAR 2003 return, due on or before July 31, 2002. You may also obtain a paper return and other necessary forms via our web site: http://www.sctax.org.
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