WASHINGTON, D.C. – The Marine Retailers Association of the Americas (MRAA) applauds the signing of H.3858 into law by South Carolina Governor Henry McMaster, marking a historic milestone in the effort to modernize and reduce the nation’s highest boat property tax. The new law delivers long-awaited relief for boaters and the broader South Carolina recreational boating industry by lowering the effective tax burden on watercraft and eliminating outdated policies that have long hindered growth. This multi-year victory would not have been possible without the leadership and collaboration the South Carolina Boating & Fishing Alliance (SCBFA), which spearheaded efforts on the ground in Columbia and across the Palmetto State.

“This is a major victory for recreational boating in South Carolina,” said Chad Tokowicz, Government Relations Manager for MRAA. “For years, boaters and marine businesses have faced one of the most burdensome tax structures in the country. With the signing of H.3858, South Carolina has taken a meaningful step toward fairness, affordability and long-term industry growth.”

This is what happens when industry and grassroots voices come together…

“…We appreciate the bipartisan group of more than 60 legislators, led by Rep. Gary Brewer and State Senator Stephen Goldfinch, for not only listening, but leading on this issue. This bill cuts the nation’s highest boat property taxes nearly in half, ends double taxation, and supports a $6.5 billion industry that drives jobs and economic impact across South Carolina,” said Gettys Brannon, President and CEO of SCBFA.

A Modernized, Fairer System

H.3858 introduces several key reforms designed to simplify and reduce the cost of boat ownership across the state. Most notably, the law exempts 42.8571% of a boat’s fair market value from property taxation, effectively lowering the assessment ratio from 10.5% to approximately 6% once fully implemented, aligning it with the rate applied to motor vehicles in the state.

In addition, the legislation eliminates the requirement to title outboard motors separately and instead allows boats and motors to be taxed as a single unit, addressing a longstanding issue of double taxation that has inflated costs for South Carolina boat owners. The reforms will be phased in beginning in 2027, providing a clear path toward a more competitive and accessible boating environment.

Strengthening South Carolina’s Marine Economy

South Carolina’s recreational boating industry is a powerful economic engine, generating more than $6.5 billion in annual economic impact and supporting over 27,100 jobs across the state. From manufacturing and retail to service, tourism and hospitality, recreational boating supports hundreds of businesses in both coastal and inland communities statewide.

In addition, annual sales of boats, engines, trailers and accessories approach $900 million, underscoring the strength and continued growth of the market. Furthermore, according to the Charleston City Paper, the industry has expanded rapidly in recent years, with economic impact increasing by more than 60% since 2018, demonstrating both strong consumer demand and the sector’s importance to South Carolina’s broader economy.
Despite this growth, South Carolina’s historically high boat property taxes have limited the industry’s full potential by pushing boat ownership and registration to neighboring states. By reducing this burden, H.3858 is expected to unlock additional economic activity, encouraging more in-state boat ownership, increasing sales and service demand, and strengthening the network of marine businesses that depend on a healthy and accessible boating market.

“This legislation reflects what can be achieved when industry stakeholders, policymakers and grassroots advocates work together,” said Mike Sayre, MRAA Director of Government Relations. “By creating a more reasonable and predictable tax structure, South Carolina is positioning itself to retain more boat owners, support local marine businesses and grow its boating economy for years to come.”

MRAA’s Role in Advancing Reform

MRAA played an active role throughout the legislative process, working in close partnership with the South Carolina Boating & Fishing Alliance to advocate for meaningful reform. Together, the organizations aligned industry stakeholders, coordinated grassroots engagement and delivered a unified message to lawmakers about the urgent need to address the state’s outdated and burdensome boat tax structure.

MRAA further supported the effort by providing economic data, and policy analysis, helping to clearly demonstrate how high property taxes were negatively impacting boat ownership, and marine businesses. In collaboration with the Alliance, MRAA also helped amplify the voices of dealers, anglers and boaters across South Carolina, ensuring policymakers heard directly from constituents affected by the issue.

This coordinated approach, combining local leadership from the Alliance with national perspective and resources from MRAA, proved instrumental in building legislative support and maintaining momentum throughout the process. The partnership ultimately helped drive H.3858 across the finish line and into law.

 “The passage of H.3858 marks a pivotal moment for South Carolina’s recreational boating industry,” said Chris Butler, Owner and President of Butler Marine. “For too long, outdated and burdensome tax policies have held back boat ownership and business growth. This legislation not only delivers meaningful financial relief to boaters but also creates a more competitive environment for marine businesses, as more South Carolinians will be encouraged to purchase, register, and keep their boat in the state…”

It’s a clear win for consumers, for our industry, and for the long-term strength of South Carolina’s recreational boating economy.

Looking Ahead

With H.3858 now signed into law, MRAA will continue working with stakeholders to support effective implementation and to ensure that South Carolina’s marine industry fully realizes the benefits of this reform.

The association also sees this as a potential option for other states evaluating outdated or burdensome tax policies impacting recreational boating. Should you have any questions about MRAA government relations or advocacy efforts at a state or federal level please do not hesitate to reach out.

About the Marine Retailers Association of the Americas

At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice.