SC Senate weighs major boat tax cut
February 17, 2026
South Carolina boat owners are moving closer to significant tax relief as a bill to slash property taxes on watercraft advances through the state Senate.
House Bill 3858, which passed the House last year, is scheduled for a vote before the full Senate Finance Committee on Tuesday. The legislation aims to address what advocates call the highest boat property taxes in the country by providing a 50% exemption on the fair market value of watercraft and lowering the effective assessment ratio from 10.5% to approximately 6%.
Impact on Coastal Communities
The current 10.5% tax rate has been a particular point of contention in coastal hubs like Georgetown and Horry counties. Gettys Brannon, president and CEO of the South Carolina Boating and Fishing Alliance, argued that these high costs drive residents to register their vessels in other states.
“We saw that 80% of boats over $120,000 are registered out of state,” Brannon said. “What we’re pushing for is a lower tax rate to keep those bigger boats… here, but also decrease the tax burden on the pontoon boat owner, the John boat owner, the bass boat owner that already has their boats here.”
Streamlining and Support
Beyond the rate cut, the bill would streamline the bureaucracy of boat ownership by eliminating the requirement to title outboard motors separately. State Rep. Gary Brewer, who initially introduced the bill, said this would move owners toward a “one bill, one sticker” system.
Brewer noted that the bill’s progress has been bolstered by support from Sen. Stephen Goldfinch, who has been instrumental in educating other senators on the economic necessity of the reform.
The bill cleared a Senate Finance property tax subcommittee unanimously last week. Supporters are optimistic about its prospects in the full committee, noting that Sen. Harvey Peeler, the committee chairman, is also in favor of the measure. If the committee provides a favorable report Tuesday, the bill is expected to head to the Senate floor within the next two weeks.
