The South Carolina Senate Finance Committee's Property Tax Subcommittee convened on April 15, 2025, to discuss proposed amendments to property tax legislation affecting boat owners. The meeting focused on the implications of adjusting tax rates for watercraft, with members expressing a range of opinions on the potential impact on local governments and taxpayers.

One of the primary discussions centered around an amendment proposed to change the assessment ratio for watercraft from 50% to approximately 42.86%, aligning it with the rates for cars and other vehicles. This adjustment aims to phase in a lower tax burden over three years, starting in 2026. Proponents argue that this change would benefit boat owners and stimulate local economies by allowing individuals to retain more disposable income.

However, several committee members raised concerns about the broader implications of such a tax shift. Senator Murray highlighted that while the amendment might provide immediate relief to boat owners, it could also lead to significant revenue losses for local governments, particularly in rural areas where budgets are already tight. He emphasized that the proposed changes could force counties to either cut services or raise taxes elsewhere to compensate for the lost revenue.

Senator from Marion echoed these sentiments, noting that the financial impact on poorer counties could be severe. He pointed out that while affluent counties might absorb the changes more easily, rural areas would struggle to make up for the shortfall, potentially affecting essential services and employment.

The discussion underscored a fundamental tension between providing tax relief to boat owners and ensuring that local governments can maintain their financial stability. As the committee prepares to finalize its recommendations, the debate continues over the balance between tax equity and the economic realities faced by different communities across South Carolina. The subcommittee is expected to report its findings and recommendations in the coming weeks, with further discussions anticipated as the legislative process unfolds.