Legislator proposes boat tax reduction to boost revenue for South Carolina counties

During a recent meeting of the Senate Finance Committee's Property Tax Subcommittee, a significant discussion emerged regarding South Carolina's boat tax rates, which are currently the highest in the nation—300% higher than neighboring states. Lawmakers are advocating for a reduction in these rates to enhance the state's competitiveness and attract more boat registrations.

One committee member emphasized that lowering the tax rates could send a strong message to voters and manufacturers, potentially reversing the trend of out-of-state registrations. Currently, nearly 80% of boats sold in South Carolina for over $100,000 are registered outside the state, resulting in substantial lost tax revenue. A local boat manufacturer highlighted that 90 out of 100 high-value boats sold were registered elsewhere, underscoring the financial impact of the current tax structure.

The proposal aims not to undermine county revenues or services but to stimulate economic growth by making South Carolina a more attractive place for boat owners. Proponents believe that a more competitive tax rate will ultimately lead to increased revenue for counties as more boats are registered within the state.

As discussions continue, the committee is focused on finding a balance that supports local governments while fostering a thriving boating industry in South Carolina. The next steps will involve further deliberation on the proposed tax adjustments and their potential implications for both the economy and local services.