South Carolina lawmakers advance bill to cut boat property taxes nearly in half

COLUMBIA, S.C. (WIS) - A proposal moving through the South Carolina State House would significantly reduce property taxes on boats, a move supporters say will keep boat owners — and boating businesses — in the state.

South Carolina currently taxes boats at 10.5%, one of the highest rates in the country. Under a bill that has already passed the House and cleared a Senate committee unanimously, that rate would drop to 6%, phased in over several years.

For boat owners, the impact would be substantial. A $50,000 pontoon, for example, currently carries an annual property tax bill of about $2,800 in Richland Co. That same boat in Charlotte Mecklenburg would be $378 a year, and $422 in Hartwell, GA.

“This tax rate works for no one,” said Gettys Brannon, president and CEO of the South Carolina Boating and Fishing Alliance. “The so‑called wealthy boat owners — you’re taxing them out of the state. And the folks with Jon boats, pontoon boats, bass boats, smaller center-console boats — you’re taxing them off the water.”

Lawmakers say South Carolina’s high rate also pushes residents to register their boats in other states with lower taxes. Sen. Stephen Goldfinch, a Georgetown Republican, said everyday boat buyers are the ones most affected.

“The people who are getting squeezed are the people buying a Jon boat or skiff,” Goldfinch said. “Those guys don’t have the ability to go register their boat in Delaware or Montana, hire a lawyer, go to Montana and register it.”

At Marine 360 in Chapin, owner Brandon Crutchfield said high taxes are one of the first things customers ask about.

“It’s pretty obvious — it comes up every day,” Crutchfield said. “People are constantly asking what the impact of property taxes are going to be. That’s the number one question.”

Local manufacturers say the change would benefit their industry as well. Sea Hunt Boats, based in Columbia, builds thousands of boats each year and employs hundreds of workers. National Sales Director Robbie Coates said lowering taxes could help fuel sales.

“It’s a big barrier for us,” Coates said. “We want to keep producing boats. We want to keep people employed in South Carolina. Sometimes property tax will really interfere with the sale.”

In addition to lowering the property tax rate, the bill would eliminate a separate registration fee for outboard motors, reducing costs for boat owners even more.

The full Senate is expected to vote on the measure next week. Gov. Henry McMaster has previously signaled support for lowering boat taxes.

Feel more informed, prepared, and connected with WIS. For more free content like this, subscribe to our email newsletter, and download our apps. Have feedback that can help us improve? Click here.