South Carolina Advances Boat Tax Reform Legislation

This week, South Carolina lawmakers approved legislation that would significantly reduce property tax applied to boats and simplify the way boats This week, South Carolina lawmakers approved legislation that would significantly reduce property tax applied to boats and simplify the way boats are taxed and titled, marking a major policy win for the state's recreational boating industry.

The measure passed the House earlier this week after clearing the Senate by a 39-1 vote earlier this month. The bill now heads to Gov. Henry McMaster for consideration. If signed into law, H 3858 would reduce the state's boat property tax rate from 10.5 percent to 6 percent over three years, with full implementation by 2030. The bill also removes the requirement for separate outboard motor titles and allows boat owners to receive a single, consolidated tax notice for their vessel and motor.

The legislation was led by the South Carolina Boating & Fishing Alliance, which worked over multiple years with industry stakeholders and lawmakers to advance the proposal. "This has been a multi-year grassroots effort led by boaters and anglers across our state to address the most burdensome tax structure on boats in the country," said Gettys Brannon, president and CEO of the South Carolina Boating & Fishing Alliance. "We worked alongside boaters, businesses and policymakers to deliver a solution that cuts costs, simplifies the system and better reflects how our industry should operate."

NMMA supported the South Carolina Boating & Fishing Alliance's effort through engagement with lawmakers, advocacy alerts, and letters of support. The legislation aligns with NMMA's work to keep U.S. marine manufacturing globally competitive by reducing regulatory burdens and improving the business environment for manufacturers, dealers and suppliers.

"As more Americans seek affordable opportunities to get outdoors and spend time on the water with family and friends, policies like this are increasingly important," said NMMA President and CEO Frank Hugelmeyer. "We appreciate the leadership of the South Carolina Boating & Fishing Alliance and lawmakers who worked to advance a practical solution that lowers costs and supports continued growth in the state's recreational boating economy."

The legislation is expected to benefit boaters and marine businesses statewide while reinforcing South Carolina's position as a strong and growing boating market.

For more information, please reach out to NMMA's Director of State Government Relations, Ben Murray, at [email protected].