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H 3858

Taxation on boats

2025-2026 Regular Session Introduced by Lucas Atkinson and 59 co-sponsors

The bill reduces local property taxes on watercraft by 50% of fair market value and ends title requirements for outboard motors, with consolidated tax notices.

Act No. 109
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Bill Summary · H 3858

Bill summary — H 3858 (Taxation on boats)

Note: The file for H 3858 contains two different items merged together (an unrelated Massachusetts draft about free hunting/fishing licenses for 100% disabled veterans and a South Carolina bill amending watercraft titling and taxation). This summary focuses on the primary substantive text and legislative actions tied to the title “Taxation on boats,” which amend South Carolina law.

Purpose / intent

The bill revises state law governing titling and local taxation of watercraft and outboard motors. Its goals are to (1) remove the statutory requirement to title outboard motors, (2) make conforming changes to related titling and certificate provisions, (3) allow the state auditor to consolidate tax notices for boats/boat motors/watercraft, and (4) provide a property tax exemption equal to 50% of the fair market value of watercraft.

Key provisions

  • Delete the requirement that outboard motors be titled (amendments to Article 1, Chapter 23, Title 50 — multiple sections such as 50-23-345 and 50-23-375).
  • Amend titling and certificate provisions (e.g., sections like 50-23-20, 50-23-30, 50-23-35 and 50-23-370) to reflect that outboard motors are no longer required to be titled and to update related definitions and procedural language.
  • Amend tax-notice law (Section 12-37-3210) to make conforming changes and expressly allow the State Auditor to consolidate tax notices for boats, boat motors, and watercraft (so owners receive a single consolidated tax notice where applicable).
  • Create a property tax exemption (Section 12-37-220) that excludes 50% of the fair market value of watercraft from property taxation.
  • Conforming edits to other statutes to align terminology and cross-references with the change that outboard motors will not be titled.

Who is affected

  • Boat/watercraft owners: lower property tax burden on watercraft because 50% of fair market value would be exempt; may receive consolidated tax notices.
  • Owners of outboard motors: would no longer be required to obtain a separate title for outboard motors in many situations (reducing titling paperwork/fees).
  • County auditors and tax collectors: will implement the 50% exemption, adjust assessments/collections, and may consolidate notices as allowed.
  • Marine dealers: several dealer-related titling, demonstration-number, and trade-in provisions are retained or clarified; administrative practices may change where titling of motors previously required.
  • Local governments: potential reduction in property tax revenue tied to watercraft assessments.

Fiscal and administrative implications

  • Revenue reduction for counties/municipalities: a 50% exemption on watercraft fair market value will lower local property tax collections unless offset by other changes. Exact fiscal impact depends on the statewide assessed base of watercraft.
  • State administrative impacts: elimination of motor titling reduces title-processing workload and associated fees; consolidating notices may simplify taxpayer communications.
  • Potential need for implementing guidance/IT changes by county auditor offices to apply exemptions and consolidated notices.

Procedural status and timeline (as provided)

  • Introduced (South Carolina House) — 01/30/2025; referred to Ways and Means.
  • Committee report (Ways and Means): Favorable with amendment — 04/30/2025.
  • Read second time and amended — 05/07/2025 (House roll call: Yeas 89, Nays 7).
  • Read third time and sent to Senate — 05/08/2025.
  • Referred to Senate Committee on Finance; hearing scheduled 07/22/2025 (1:00–5:00 PM, room A‑2).
  • Multiple lawmakers added as sponsors during floor/committee stages; scrivener’s error corrected 05/06/2025.

Notes / caveats

  • The document includes an unrelated Massachusetts bill (free hunting/fishing licenses for 100% disabled veterans). That is a different measure and not part of the South Carolina titling/taxation changes summarized here.
  • Exact statutory section numbers updated in the final amendment text may vary; implementers should consult the enacted text for precise conforming language and effective dates.

Compiled from official sources — confirm details with the bill’s official record.

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