It’s been a long time coming, but the South Carolina Legislature has finally passed tax legislation favorable to boat owners:
“A … boat or watercraft … used for … recreational travel that is pulled by a motor vehicle on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or secondary residence also is a primary or secondary residence for purposes of ad valorem property taxation in this State. The fair market value of … a boat or watercraft … used for … recreational travel that is pulled by a motor vehicle classified for property tax purposes as a primary or secondary residence pursuant to this section must be determined in the manner that motor vehicles are valued for property tax purposes.” —SC Code of Laws, §12-37-244, as amended by Act 66 of 2007.
This means that qualifying watercraft (those with appropriate living facilities - cooking, sleeping, and toilet facilities) should now be taxed at 6%, rather than 10.5% as in the past. However, it isn’t automatic — you have to apply for the reduced tax rate — and apparently none of the counties are advertising it. Each county is handling this a different way. Below is the process for some local counties:
If your qualifying boat is registered
in any other South Carolina county, contact that county auditor’s office to
find out how to get the reduced tax rate.