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| South Carolina has the highest boat taxes in the nation. Boat owners look to the state legislature for tax relief before the legislative session ends May 8. (Photo Credit: Stephen Andrews, Pexels) |
Written by: Tony J. Spain, Palmetto Examiner
April 30, 2025
COLUMBIA, S.C. (PE)--South Carolina ranks second in the nation in boat ownership
per capita, that’s not surprising from a state that likes to brag about its
beautiful waterways, from the beaches to the streams and lakes, they’re hard to
beat. What is not hard to beat is the property taxes on boats to enjoy those
waterways.
Boat owners in South Carolina are charged some of the highest property taxes in
America, more than 320% higher than bordering neighbors. A $50,000 boat is
taxed at $2,800 a year in some parts of South Carolina, while the same boat
across the lake in North Carolina is taxed at $378.
This has garnered bipartisan support within the South Carolina legislature,
aiming to address the tax burden affecting boat owners in the Palmetto State.
The House and the Senate introduced similar bills earlier this session, H.3858
and S.
317, which seek to cut property taxes on boats in the state in half.
Additionally, the House bill seeks to eliminate the requirement for outboard
engine titles.
The House bill gained momentum last week advancing unanimously through the
House Ways & Means committee with 50 legislators adding their names to
co-sponsor the bill introduced by Rep.
Gary Brewer, R-Charleston.
“This is a tax cut for working South Carolinians. The current system punishes
families who want to enjoy our lakes, rivers and coastlines. H. 3858 corrects
that injustice by lowering taxes and ending outdated taxation on boat motors,”
said Brewer. “For too long, high property taxes and burdensome titling
requirements have discouraged South Carolinians from enjoying the open waters. This
bill ensures boaters and anglers can afford the equipment made in our state
that they need to make the most of our beautiful waterways”
Boat owners in South Carolina faces some of the highest property taxes in
America, more than 320% higher than our bordering neighbors in some places.
It’s forcing families to get rid of their boats and spend less time enjoying
South Carolina’s great outdoors. A sentiment that even the governor has chimed
in on in support of the bill.
“S.C. boat owners pay the highest property taxes in America. We have a chance
to change that,” Governor Henry
McMaster wrote on social media. “I support cutting boat and motor property
taxes so working families can keep enjoying our state’s beautiful waters.”
In one comparison a $50,000 boat brings a personal property
tax bill of $2,800 a year in some parts of South Carolina. The same boat, across
Lake Wylie, in North Carolina has a tax bill of $378 a year.
If a family uses their pontoon boat for just five outings a summer, they’re
effectively paying $560 per trip to the government in taxes.
House Minority Leader Todd
Rutherford, D-Richland, a vocal supporter of the bill, is past ready to get
this bill through and bring relief to middle class boating families.
“This bill is about fairness and freedom. Boating should be about family time,
not financial penalties,” Rutherford said. “For too long, the middle class has
carried the burden while high-end boats just get registered out of state. That
ends now.”
The South Carolina Boating and Fishing
Alliance, a consumer advocacy group aimed at uniting the voices of boating
and fishing enthusiasts in the state are big supporters of the bills, conducted
a survey that suggests nearly 80 percent of boats sold to South Carolina
residents with a sale price of more than $120,000 are being registered out of
state. They say this bill would not only cut tax rates on boats, it brings
revenue back from these out-of-state registered boats and would also streamline
the boat buying process for new boat purchases in the state.
“When we make it more affordable to own and register boats in South Carolina,
we’re opening the door for more boaters to call our state home. This isn’t just
good for taxpaying citizens of South Carolina, it’s good for our marine
industry, creating jobs and boosting local businesses that serve boaters and
anglers,” said Gettys Brannon, SCBFA
President and CEO. “Basic economics suggest, anytime the cost of a product
decreases, there should be an increase in demand. During this debate, many have
forgotten that principle.”
Rutherford, who co-sponsored H.3858, also agrees.
“South Carolina is pricing itself out of boat ownership. Citizens buy their
boats here and register them elsewhere,” Rutherford said. “This bill will open
the door for more boaters to call our state home and create a ripple effect
that benefits not just individuals, but our entire boating and fishing economy
and small businesses across the state.”
Opponents to the bill, like the South
Carolina Association of Counties, argue that boating is a luxury and
shouldn't get a tax cut. They believe this will shift the tax burden to small
businesses or renters, affecting funds for essential services like schools, law
enforcement, and fire protection.
“As more people are coming to South Carolina, this bill is asking counties,
cities, and school districts to lose a significant amount of revenue and have
small business and renters subsidize those who have the luxury of having a
boat,” said Owen McBride, SSAC. “In all
reality, this increase is going to go on the backs of small businesses and
renters.”
Other counties claim the if lawmakers pass these tax cuts they’ll lose millions
of dollars in revenue yearly. Charleston County taking one of the biggest
losses.
“The amount of revenue that watercraft brings in in Charleston is around $19
million,” said Peter Tecklenburg, Charleston County Auditor. “This
would be a tax shift. We would have to find a way to make up this revenue.”
Brewer, who represents the Charleston County area, argues these are not luxury
boats
and the counties need to learn to budget, live within in their means.
“The majority of people that own boats in my area, that own boats in general,
are not using these boats as a luxury items like the counties like to try and
tell you they are. They’re using these boats to be able to spend time with
their families. These are their vacation time. These are the weekends with
their kids. This is the time they get to spend with their family and yet we
decide to tax them at 10 and a half percent,” Brewer said. “you’re [The
counties are] living outside of your means and at the end of the day this is
the tax payers money. It’s not their money.”
Brewer also says it’s basic economics.
“The counties will say this takes away money form schools, but what they don’t
understand is if we’re selling more boats, we’re producing more boats,” Brewer
said. “That means the manufacturers have to add on to what they got which means
the money they invest back into manufacturing, that goes to schools.”
According to numbers from the National
Marine Manufacturing Association, South Carolina ranks 13th in
the nation for recreational boating economic impact. Recreational boating has
more than a 6.5 billion annual impact and supports 27,000 jobs in the state. Brannon
also believes that economic impact can work in the counties favor with tax
revenues.
“This proposal affects less than one percent of most county budgets—budgets
that continue to grow organically year after year. At the same time, high taxes
are driving boats and their associated revenue out of state,” Brannon said. “By
making boat ownership more affordable we can grow the base, recapture lost
registration and support long-term funding stability-not threaten it.”
One resident, who testified at the state house said, he’s been “paying and
paying” and just looking for some “tax relief” for “a little guy in the pond” that
just likes to take his grandkids out on the lake and fish.
“I have two boats. I have a jon boat. I don’t have big boats. I don’t have a
100,000 dollar boat or anything—I got a nice little twenty-one-foot bass boat.
I like to crappy fish out of. I got a John boat like to take to Sante in the
rivers. Nothing terribly expenses,” Eddie Taylor, retired
resident, Gilbert, S.C., testified to lawmakers at the state house. “All of
them are ten to 15 years old, but I am still paying two to three thousand dollars
in personal property taxes for these boats. I pay more personal property taxes
on these boats than I do on my nice brick home and my 56 acres of land.”
Brannon tells us this is what this tax cut is really about, a way of life, not
luxury yachts.
“This isn’t about yachts and millionaires. It’s about the family with a John
boat, weekend fishermen, pontoon boat owners, grandfathers taking their
grandkids out fishing,” Brannon said. “Boating is a way of life in South Carolina—but the current tax structure is
holding people back. No one should feel punished for wanting to spend time on
our lakes, rivers, and coastlines. This is our chance to make boating more
affordable, keep more boats registered in state, and invite more families into
the outdoors.”
House Bill 3858 cleared another hurdle this morning. The Full Ways & Means
committee advanced the bill with a vote of 17-5.
“We are cautiously optimistic. With over 50 legislators supporting meaningful
relief for the highest boat property taxes in the nation, there’s grassroots
momentum behind the effort,” Brannon said. “As a group fighting for boat owners
and anglers across South Carolina, we certainly hope to see it passed this
session, but ultimately, that decision rests with our elected lawmakers.”
The legislative session ends May 8.
About the Author:
He lives in
Columbia, S.C.
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