South Carolina lawmakers push to reduce soaring boat property taxes

The House Ways and Means Committee's Property Tax Legislative Subcommittee convened on April 23, 2025, to discuss significant concerns regarding property taxes on boats in South Carolina. The meeting highlighted the pressing issue of high personal property taxes that boat owners face, which has drawn attention from both lawmakers and constituents.

The session began with a representative voicing the concerns of hundreds of thousands of boaters and anglers in the state. He noted that South Carolina is one of only 13 states that impose personal property taxes on boats, and it has the highest rates in the nation. The representative provided a stark comparison of tax rates across state borders, illustrating that boat owners in neighboring areas pay significantly less. For instance, he cited that a $50,000 boat incurs a tax of $2,400 in Cherokee County, while the same boat would only be taxed $378 in Charlotte, North Carolina.

The discussion included references to bipartisan support for a bill aimed at reducing these taxes, with nearly 50 sponsors advocating for change. The representative emphasized that many county council members have expressed similar concerns, indicating a widespread desire for reform among local leaders.

Further, the representative pointed out that a survey of boat dealers revealed that 80% of boats priced over $120,000 are registered out of state, suggesting that the high tax burden is driving potential buyers away. He argued that the current tax structure is detrimental to local taxpayers and is creating an unfair advantage for neighboring states.

As the meeting progressed, Representative Rutherford, also a boat owner, shared his personal experience with exorbitant boat taxes, stating that his annual tax bill was equivalent to half of his boat payment. He underscored the financial strain these taxes impose on residents, making boat ownership increasingly unaffordable.

The committee ultimately moved towards a roll call vote on the proposed bill, with several members expressing their support for the initiative. The meeting concluded with a commitment to continue discussions on related bills, although time constraints limited further debate on those topics.

In summary, the meeting underscored a growing consensus among lawmakers and constituents regarding the need for reform in boat taxation in South Carolina, with hopes that legislative action will alleviate the financial burden on boat owners in the state.