OPINION: Fix it now—S.C. House members must vote to end double taxation on boats

There’s a simple principle most South Carolinians agree on: government shouldn’t balance its books on the backs of taxpayers—especially not by taxing the same asset twice.

Yet that’s exactly what’s happening under our current system of taxing boats and outboard motors.

As a town councilmember in Lexington, a community that touches the shores of Lake Murray, I see firsthand how important our waterways are to our local economy and quality of life. Lake Murray isn’t just a scenic backdrop—it supports small businesses, drives tourism and provides thousands of families with opportunities to enjoy the outdoors.

But our current tax structure is working against that.

South Carolina’s system is widely recognized as one of the most burdensome in the country. Boat owners are taxed at an assessment rate of 10.5% of a vessel’s value—before local millage is even applied. In some cases, both the boat and its motor are taxed separately, leading to what is effectively double taxation.

That’s not just inefficient policy—it’s fundamentally unfair.

More than 368,000 boats are registered in South Carolina, along with nearly 164,000 separately titled outboard motors. That’s hundreds of thousands of taxpayers impacted by a system that is overly complex, outdated and, frankly, hard to justify.

Because when you step back and look at it, it raises a basic question: what exactly are these taxes being used for?

Boat owners aren’t using many of the services their tax dollars are funding. These dollars often go toward general county expenses—things like roads, trash collection and even schools. But that doesn’t align with how these assets are actually used.

Boats should be paying for the resources they rely on—our waterways, boat ramps, safety enforcement and conservation efforts managed by the Department of Natural Resources—not serving as a catch-all funding source for unrelated government services.

And South Carolina is out of step with much of the country. Only a small number of states even impose property taxes on boats at all, because most recognize that it simply doesn’t make sense.

There’s a better approach.

If the goal is to properly fund our waterways and ensure responsible use, then registration fees—dedicated directly to those resources—are a far more logical and transparent solution than high, layered property taxes.

Instead, what we have today is a system that discourages compliance altogether.

According to industry data, roughly 80% of high-value boats purchased in South Carolina—those worth $120,000 or more—are registered out of state to avoid our tax structure. That means we’re not just dealing with a fairness issue—we’re actively pushing economic activity, revenue and investment across state lines.

Groups like the South Carolina Boating and Fishing Alliance (SCBFA) have been leading the charge on this issue, advocating for a fairer, more transparent system that better reflects how boat owners actually use and support our waterways.

Now, opponents of reform argue that fixing this system could cost counties revenue—an estimated $39.7 million statewide, including about $6.1 million in Lexington County.

Those are real numbers, and as someone who serves in local government, I understand the importance of stable funding for essential services.

But here’s the problem: the argument for keeping a broken system cannot be, “we know it’s unfair, but it costs too much to fix.”

That’s not how this works.

Every day, families and small businesses across Lexington County and South Carolina are forced to make tough financial decisions. They balance their budgets. They cut unnecessary expenses. They prioritize what matters most. They don’t have the luxury of charging the same cost twice or relying on an unfair system to make up the difference.

Government should be held to that same standard.

If a system is clearly flawed—if it is placing an undue and inequitable burden on citizens—then it is our responsibility to fix it, not defend it.

And importantly, this conversation shouldn’t stop at incremental reform. While reducing rates is a step in the right direction, we should be asking bigger questions about whether this type of taxation makes sense at all—and whether a more transparent, user-based system would better serve both taxpayers and our natural resources.

The legislation currently before the General Assembly is a meaningful step forward. It simplifies the system, reduces the burden and moves South Carolina toward a more competitive and fair approach.

But ultimately, this is about more than boats.

It’s about fairness. It’s about accountability. And it’s about whether we expect government to operate with the same level of discipline and common sense that we expect from our citizens.

South Carolina taxpayers deserve better.

I urge the South Carolina House of Representatives—particularly members of the Lexington County House Delegation—to concur with the Senate’s amendments to H.3858 and send this long-overdue reform to the Governor’s desk for signature.

It’s time to end double taxation—and get this right.

Gavin J. Smith is a town councilmember in the Town of Lexington. He was first elected during the May 2023 Special Election, and was most recently re-elected to his first full, four-year term on Lexington Town Council during the November 2025 General Election.