Union County officials oppose proposed 50% cut to boat taxes in South Carolina

During a recent meeting of the House Ways and Means Committee's Property Tax Legislative Subcommittee, significant concerns were raised regarding proposed changes to boat tax legislation in South Carolina. The discussions highlighted the potential financial impact on local communities, particularly in terms of revenue loss for counties and school districts.

Brad Valentine from Union County emphasized that while the proposed bill aims to reduce boat taxes by 50%, it also eliminates the titling and registration of boat motors. This change could lead to a substantial decrease in tax revenue, not only from boats but also from motors, which could result in a tax increase for other property owners in the county. Valentine warned that Union County could face a two-mill tax increase to compensate for the lost revenue, affecting all taxpayers.

Owen McBride, representing the Association of Counties, echoed these concerns, stating that the bill could have a fiscal impact of $60 million on counties, cities, and school districts across the state. He pointed out that the proposed tax breaks would disproportionately benefit boat owners—216,000 registered boats in South Carolina—at the expense of over five million residents who do not own boats. McBride noted that the current low sales tax on boats already attracts buyers from neighboring states, and further tax reductions could exacerbate this trend.

The committee members were urged to consider the broader implications of the proposed legislation, particularly how it would affect funding for essential services in local communities. As discussions continue, the potential for increased taxes on other property owners looms large, raising questions about the balance between tax relief for boat owners and the financial stability of local governments. The subcommittee's next steps will be crucial in determining how to address these concerns while still pursuing tax reform.