Governor Henry McMaster has indicated his support for proposed legislation that proponents believe could significantly reduce property taxes for boat owners in South Carolina.
The Governor stated his agreement with the need to lower boat and motor property taxes to allow families to continue enjoying the state’s waterways.
Currently, most boats in South Carolina are taxed at a rate of 10.5%, although counties have the option to lower this rate to 6% through local ordinances, according to the South Carolina Department of Revenue.
Representative Gary Brewer of Charleston reintroduced a bill in January that would cut the maximum property tax rate on boats by half. A similar bill has also been filed in the Senate.
During a House Ways and Means subcommittee hearing, Representative Brewer asserted that the current 10.5% state tax rate on boats is excessively high. He emphasized the importance of addressing the concerns of residents who are burdened by what they describe as the highest boat taxes in the nation, especially given the state’s growing population.
According to the South Carolina Boating and Fishing Alliance, there are half a million registered boats in the state, contributing an estimated $6.5 billion annually to the state’s economy. The alliance argues that South Carolina’s tax rate, which is more than three times higher than that of neighboring states, has incentivized boat owners to register their larger vessels out of state.
