Boating is not only a staple of leisure in South Carolina, but also a multibillion-dollar industry that supports tens of thousands of jobs across the state. 

Industry leaders say boating generates an annual economic impact of $6.5 billion in South Carolina and supports roughly 27,000 jobs. From manufacturing to marina operations, the industry serves as a backbone for many workers and coastal communities. 

“It’s a $6.5 billion industry representing 27,000 jobs — a lot of boats just like this Bentley pontoon made here in South Carolina,” said Gettys Brannon, speaking about the scope of the state’s boating sector. 

However, high property taxes on boats have long been a concern for South Carolina owners and dealers. House Bill 3858, which recently passed the Senate Finance Committee, aims to reduce that burden. The measure is now step’s away from a vote on the Senate floor. 

Supporters of the bill argue that South Carolina currently has the highest boat property tax in the country, prompting some owners to register their vessels elsewhere. 

“It is the highest boat tax in the country, and so basically what you have is people moving their boats out of state,” Brannon said. 

South Carolina is also one of the few states that titles and taxes boat engines separately from the vessels themselves, further increasing costs for owners, according to industry advocates. 

If passed, the legislation would cut property taxes on boats by roughly half, supporters say. 

Standing among rows of boats in Columbia, proponents pointed to the potential financial impact.  

A new Sea Pro boat priced at $129,000 currently carries an estimated annual property tax bill of about $8,000 under existing law. Under the proposed changes, that tax would drop to roughly $4,000 per year. 

Alan Pundt, who works in the boating industry, said the reduction could have an immediate effect on sales. 

“I think it’s going to greatly accelerate sales in South Carolina for people to get out on the water and enjoy it,” Pundt said. “They’ve got 50% less sales tax, which means they’re going to be able to get out and enjoy the water more.” 

Supporters say the measure would encourage boat owners to keep and register their vessels in South Carolina, potentially strengthening the state’s marine economy. 

The bill now heads to the full Senate for consideration in the coming weeks.