A proposed bill to significantly reduce property taxes on boats has sparked intense debate among South Carolina lawmakers, particularly concerning its potential impact on smaller counties. During a recent Senate Finance Committee meeting, officials voiced strong concerns that the tax cuts could lead to substantial financial strain on local governments.

The bill aims to lower property taxes on boats to as low as 3%, a move that proponents argue would stimulate tourism and benefit coastal counties. However, critics, including Saluda County Chair Jim Moore, highlighted the disproportionate burden this would place on less affluent areas. Moore emphasized that a $400,000 tax cut would equate to a loss of five mills for his county, forcing them to either raise taxes on residents who do not own boats or cut essential services.

Moore's testimony underscored a broader concern that the tax relief would favor wealthier boat owners while neglecting the needs of working-class citizens. He argued, “It’s not fair that people who don’t own boats are paying for those who do.” This sentiment was echoed by other county officials, including Oconee County Auditor Christy Hubbard, who warned that the proposed tax reduction could lead to a $2 million shortfall for schools, shifting the tax burden from luxury items to necessities.

As the committee continues to deliberate, the future of the bill remains uncertain. Lawmakers are urged to consider the implications for local economies and the fairness of tax policy, particularly for South Carolina's smaller, rural counties. The discussions reflect a critical balancing act between promoting tourism and ensuring equitable taxation across the state.