SC legislation looks to slash boat taxes

Bill would cut boat taxes in half

More than 30 members of the South Carolina House of Representatives, led by Representative Gary Brewer (R-Dorchester), have introduced bipartisan legislation to significantly lower costs for boat owners and modernize state regulations.

H.3858, which was filed Thursday in the South Carolina House of Representatives, proposes a 50% reduction in property taxes on boats, positioning South Carolina as a more affordable destination for boat ownership. It also seeks to eliminate the outdated requirement for outboard engine titles, a move that aligns the state with 44 others and simplifies the ownership process.

“For too long, high property taxes and burdensome titling requirements have discouraged South Carolinians from enjoying the open water,” said bill sponsor Rep. Gary Brewer. “This bill ensures that boaters and anglers can afford the boats and equipment made in our state that they need to make the most of our beautiful waterways.”

What the legislation says

Key Benefits of the Legislation: Current property taxes on boats are a staggering 10.5%, making South Carolina one of the most expensive states for boat ownership.

• Cuts Property Taxes by 50%: Relieves financial strain on boat owners, encouraging more boat registrations in South Carolina.
• Addresses Tax Disparities: Tackles South Carolina’s status as having one of the highest property taxes on boats in the nation, reducing the trend of owners registering boats in other states with cheaper taxes.
• Eliminates Instances of Double Taxation: Reduces confusion and errors, ensuring a smoother taxation process.
• Streamlines Boat Buying: Simplifies the ownership process by eliminating outboard engine titles, decreasing paperwork for consumers and state agencies.
• Reduces Workload for Agencies: Eases administrative burdens for the South Carolina Department of Natural Resources (SCDNR) and county auditors.

“South Carolina’s boating and fishing industries are integral to our way of life and our economy,” said Gettys Brannon, President & CEO of the South Carolina Boating & Fishing Alliance. “This legislation represents a giant leap forward in making boat ownership more affordable while reducing unnecessary bureaucracy. We thank the bipartisan coalition of lawmakers for championing this cause.”

Simplifies boat ownership

South Carolina’s $6.5 billion boating and fishing industry has long been hindered by high taxes and cumbersome regulations, leading many boat owners to register their vessels in other states or avoid ownership altogether. By addressing these issues, the legislation is poised to:

• Increase boat registrations in-state, businesses and conservation programs
• Align South Carolina’s practices with national standards, making the state more competitive.
• Enhance clarity for consumers by eliminating confusion surrounding outboard engine model years and titling.

“South Carolina is pricing itself out of boat ownership. Citizens buy their boats here and register them elsewhere,” said co-sponsor and House Minority Leader Representative Todd Rutherford. “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.”

H.3858 is currently sponsored by Reps. Brewer, Pedalino, Lowe, Mitchell, M.M. Smith, B.J. Cox, Chapman, Davis, Caskey, Sessions, Erickson, Guffey, B.L. Cox, Hewitt, Teeple, Hartnett, Pope, Rutherford, Brittain, Wooten, Guest, Hager, J.L. Johnson, B. Newton, Bailey, Bustos, Gagnon, Gilliam, Herbkersman, Holman, Jordan, Lawson, Martin, Murphy, and Robbins.

The SCBFA urges boaters, anglers, and marine industry stakeholders to join in advocating for this transformative legislation.