There is big news coming from South Carolina, as the state is one step closer to cutting the nation’s highest boat property tax. With an overwhelming 89-7 vote in the South Carolina House of Representatives, this reform effort has picked up serious momentum — and it’s a major victory for boaters, dealers and the entire marine industry. The proposed change brings more than just tax relief; it represents a push for clarity, fairness and economic growth that could ripple well beyond state lines.
A recently passed bill in the South Carolina House, H. 3858, proposes removing titling requirement for outboards while simultaneously lowering the personal property tax on recreational boats, effectively bundling boats and their motors as a single unit. This legislation addresses longstanding concerns about double taxation that has inflated the cost of boat ownership for South Carolina residents. This initiative, led by the South Carolina Boating and Fishing Alliance and supported by the MRAA and other national recreational boating trade associations, has garnered strong support from both lawmakers and Palmetto State Governor Henry McMaster, who has publicly endorsed efforts to reduce boat property taxes.
“Boating shouldn’t be out of reach for working families because of outdated and unfair tax structures,” said Gettys Brannon, President and CEO of the South Carolina Boating & Fishing Alliance. “H. 3858 takes direct aim at the nation’s highest boat tax, finally ending a system that punished everyday South Carolinians with double taxation. High taxes don’t just hurt wallets — they limit access to the water for working families. We look forward to working with the South Carolina Senate in January to deliver long-overdue tax relief and protect our state’s boating way of life.”
For years, South Carolina boat owners have faced the burden of being taxed separately for their boats and motors, leading to confusion and financial strain. The proposed legislation simplifies this process by consolidating the tax assessment, eliminating the issue of double taxation and ultimately lowering the tax rate. While the change won’t be retroactive, it lays the foundation for a fairer tax system moving forward and stands to benefit the entirety of South Carolina’s recreational boating industry.
“The MRAA is glad to see the positive reception of H.3858 among South Carolina Legislators and Governor McMaster,” said Chad Tokowicz, MRAA Government Relations Manager. “This support underscores the state’s commitment to their recreational boaters and anglers as well as the recreational marine businesses who call South Carolina home. This progress could not have been made without the leadership and partnership of the South Carolina Boating and Fishing Alliance (SCBFA), who shepherded this effort and led grassroots efforts to highlight the broad support for this provision among South Carolina recreational boating businesses.”
Governor McMaster’s endorsement of the bill, which has 60 co-sponsors, underscores the importance of this reform. By supporting the reduction of property taxes on recreational vessels, the state acknowledges the vital role that the recreational boating industry plays throughout the Palmetto State, fueling the outdoor recreation economy and boating and fishing culture. The recreational boating industry in South Carolina generates $6.5 billion in annual economic impact and supports more than 27,000 jobs at more than 600 businesses. This move is expected to boost boat sales, encourage tourism and support local businesses connected to the marine sector.
The Case for Change
High personal property tax rates in South Carolina have long made boat ownership more expensive for everyday Americans. These costs add up — fuel, service, safety equipment, registration, and on top of it all, some of the highest personal property taxes in the region.
In testimony submitted to the South Carolina House Committee on Ways and Means, MRAA illustrated the scale of this burden using the example of a $70,000 South Carolina-built Sportsman Tournament 21 with a Yamaha F200XB outboard and trailer. In Bamberg County, S.C., the personal property tax would total $6,690.61 — $5,443 for the vessel and $1,247.61 for the outboard motor. By contrast, the same vessel would be taxed at:
- $693 in Scotland County, North Carolina
- $1,890 in Pittsylvania County, Virginia
- $602.04 in Randolph County, Georgia
- And not taxed at all in Florida, Alabama or Tennessee
This disparity puts South Carolina’s marine dealers at a competitive disadvantage and discourages boat purchases and ownership in the state, especially during uncertain economic conditions and softening consumer sentiment.
Our Role in Advocating for Change
The Marine Retailers Association of the Americas (MRAA) has been proud to stand at the forefront of this legislative effort, advocating on behalf of boaters, marine retailers and small businesses across the state. In collaboration with the South Carolina Boating and Fishing Alliance and other stakeholders, we have:
- Provided written testimony in support of H. 3856 at all stages of the legislative process;
- Executed outreach directly to more than 90 members in the South Carolina House and Senate to highlight our support for the legislation;
- Assisted the SCBFA with research and analysis on personal property tax rates for recreational vessels across the United States, ultimately finding that South Carolina has the highest personal property tax rate for recreational vessels in the nation.
Our efforts ultimately culminated in the bill being favorably passed out of the South Carolina House and laid the groundwork to be favorable moved out of the Senate upon the reconvening of the legislative session January of 2026.
Looking Ahead — The Palmetto State & Beyond
As H. 3858 moves to the Senate for further consideration, the MRAA remains committed to seeing this critical reform enacted. This legislation represents a significant opportunity to improve tax fairness, grow the state’s marine economy and create better access to boating for Americans who call the Palmetto State home.
We thank the South Carolina House for recognizing the need for change and urge the Senate to move quickly in support of H. 3858. The MRAA stands ready to continue advocating for fair, effective policies that strengthen recreational boating in the Palmetto State and beyond. Should you have any questions about our efforts to bolster the recreational marine industry South Carolina, or across the nation, please do not hesitate to reach out to Chad Tokowicz, MRAA Government Relations Manager, at Chad@mraa.com.
