South Carolina Legislation Would Reduce Boat Tax

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% to 6% 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. The National Marine Manufacturers Association provided support through letters, lawmaker engagement, and advocacy alerts.

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