SC Boat Taxes: Bill to Lower Rates Heads to Senate Vote | WCSC Live 5 News
COLUMBIA, S.C. — The South Carolina Senate has advanced a bill that would significantly lower property taxes on boats, potentially offering substantial savings to boat owners and bolstering the state’s marine industry. The measure, which passed a Senate committee unanimously, aims to reduce the current property tax rate from 10.5% to 6%, phased in over a period of years.
Currently, South Carolina’s boat property tax rate is among the highest in the nation. Proponents of the bill argue the high taxes incentivize boat owners to register their vessels in other states, costing South Carolina revenue and impacting local businesses. A $50,000 pontoon boat, for example, is subject to approximately $2,800 in annual property taxes in Richland County, according to data presented by supporters of the legislation. By comparison, the same boat would incur $378 in property taxes in Charlotte-Mecklenburg, North Carolina, and $422 in Hartwell, Georgia.
“This tax rate works for no one,” stated Gettys Brandon, 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.”
Senator Stephen Goldfinch, a Republican representing Georgetown County, emphasized the disproportionate impact on smaller boat owners. “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 travel register their boat in Delaware or Montana, hire a lawyer, go to Montana and register it.”
The proposed tax cut has garnered support from businesses within the marine industry. Brandon Crutchfield, owner of Marine 360 in Chapin, noted that potential customers frequently inquire about the financial implications of boat property taxes. “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.”
Sea Hunt Boats, a Columbia-based manufacturer employing hundreds of workers, also voiced support for the bill. Robbie Coates, the company’s national sales director, explained that high taxes can hinder 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 reducing the property tax rate, the bill seeks to eliminate a separate registration fee for outboard motors, further reducing costs for boat owners. The full Senate is scheduled to vote on the measure next week. Governor Henry McMaster has previously indicated his support for lowering boat taxes, according to reports.