Property Taxes on Boats

[mgswake]

Anyone here live in South Carolina? I just received my tax bill in the mail. $9830 for the year. Its going to cost me $50,000 to own this boat for 5 years. That seems insane to me. Anyone else live in a state that charges property tax on boats? It is 10% of fair market value.

I dont mind paying taxes, but this seems a bit unreasonable to me.

[larry_arizona]

If I had to pay property tax on a boat I can’t live on, there is no way I would own a boat.

Never heard of that on a wakeboat.


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[HFarr]

That does sound a bit outlandish!

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[MJHSupra]

Have a buddy from SC, he told me about that crazy tax. Only state I ever heard about for boats.

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[mgswake]

The fair market value for tax purposes was 180,000. I told them "write me the check here are the keys". They did drop the tax down to $8200 after I showed them the bill of sale that was a bit less than the 180,000 number. But still, going to be hard to justify giving away that much money a year.

Going to have a long discussion with the wife tonight to figure out our plan.

[eder10986]

We pay property taxes up here in NC as well. I wouldn’t even think of owning a boat at that rate bro!
I’ll have to look at my tax bill for the rate but I paid about $650 this year. Not $6,500…. $650


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[eder10986]

The fair market value for tax purposes was 180,000. I told them "write me the check here are the keys". They did drop the tax down to $8200 after I showed them the bill of sale that was a bit less than the 180,000 number. But still, going to be hard to justify giving away that much money a year.

Going to have a long discussion with the wife tonight to figure out our plan.

I mean…..register is in NC and use it in SC and hope you don’t get stopped. If you do just say you’re there for the weekend or something…hope to not get caught again [emoji2369]

But that’s wild.


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[zabooda]

Washington has an excise tax but I don't think it is very much. Go to another state especially if you have an address you can work from. You have to figure the ins and outs of doing that like the insurance and trailer plating.

[mjb929rr]

That’s crazy!
Colorado is a $70 fee for the boat and trailer registration is $125 per year.
Maybe need to register it at a buddy’s house in a different state if possible

[996scott]

That is insane! I don't know that i would pay that kind of tax each year. That really sucks.

[sandm]

man oh man. I'll echo the others in that it's nuts...

I wouldn't have ever owned a boat if I was spending over a few hundred in registration costs each year.
my "long discussion" with the CFO would be how to sell the boat.

[larry_arizona]

https://dor.sc.gov/tax/casual-excise

In the first part of this description, I see it says not to exceed $500.


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[mgswake]

@larry that's the tax I the DNR payed when I purchased the boat. There is also an annual tax at 10.5% of fair market value which goes to the county as a property tax.

https://www.dorchestercountysc.gov/government/property-tax-services/auditor/watercraft-campers#:~:text=All%20boats%20are%20taxed%20at,all %20of%20the%20below%20criteria.

[sandm]

https://dor.sc.gov/tax/casual-excise

In the first part of this description, I see it says not to exceed $500.


I saw that when I looked as I couldn't believe it was that much. as near as I could figure out, what you posted is just on the actual purchase. there's a yearly tax on the boat similar to car registration only they call it a use tax and then charge a fee for the numbers on the side.
go here and plug in a 180k boat in the "other" and see what you get: http://www.lex-co.com/scripts/cgiip.exe/WService=wsTaxBill/branding/vTaxEst.htm

nevada is similar in that our cars get charged a "registration" and then a tax on the vehicle based on nada value but it's nowhere near what SC is charging. our 2020 camaro ss runs us $600/yr on a 45k ride. boats don't pay it as it's vehicle not watercraft. taxes go to roads afaik. looks like SC is using it to fund schools.

** edit mgs replied prior to me :)

[Mxmark4]

Send me your title and a check for TN registration. I will mail you back reg numbers and a bill of sale for boat. Dont let the man get you! Thats rediculous ! One time tax on purchase and then a 3 year reg sticker is about 100 bucks here. Hate that SC is tryin to bend you over on that. I just picked up my boat last night and gonna have to shell out about 7k on taxes for it when I go register it.

[mgswake]

@Mxmark4, I've looked into other states where family live, but I do not have the title, the bank does. If I had the title I would look at possibly selling to a friend or family out of state.

[Holdmybeer]

Check with a tax pro.
It reads on other sites that SC uses 10.5% of the value and then taxes that value at some rate based on county.

Total tax bill should be 2% or less of total boat value.

However, I'm in Ohio. $65 for 3 yrs on watercraft reg

[eder10986]

Check with a tax pro.
It reads on other sites that SC uses 10.5% of the value and then taxes that value at some rate based on county.

Total tax bill should be 2% or less of total boat value.

However, I'm in Ohio. $65 for 3 yrs on watercraft reg

That’s what NC does.

We pay max of like $1,200 sales tax or 7% or something like that.

Then our trailer and boat registration for 4 years isn’t terrible. A few hundred dollars.

Then we pay annual property taxes based on the county where the vessel is registered at.

For example, we live in orange county, which a the budgets taxed county in NC. My brother lives in Charlotte and that’s Mecklenberg and taxed much lower.

We use the boat in Orange but it’s registered in Mecklenberg saving ~$150 a year. Our yearly tax rate is ~$650 on the boat.

Been here for 10 years and NC is also the only state I’ve lived in where we pay property taxes on vehicles. So that sucks too.

For your sakes, I’m hoping they’re incorrect. Because 10k a year in taxes is more than I pay for our home in the highest taxed NC county. That’s wild


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[Mxmark4]

In TN we dont have titles either. Bank just has a lein on it. A bill of sale to family in another state could get you by possibly as long as your bank didnt find out. Maybe a Montana LLc the way giys do to avoid tax on exotic cars?

[sandm]

Maybe a Montana LLc the way giys do to avoid tax on exotic cars?

I have seen several lambos and Ferraris here in sin city with Montana plates. Now I know why :)

[RUGER761]

WOW! Some states are crazy if you own anything on taxes. I couldn't imagine getting that kind of bill for a boat each year. No way I could own one. Time to set up an outa state registration, I think.

[blay127]

is it actually considered a property tax? as in if you dont pay it they can seize the boat? if not then what is the penalty for not paying it if you get pulled over? i'd be inclined to pay a ~$500 penalty a couple times a year over a 10k bill on a BS tax

[eder10986]

is it actually considered a property tax? as in if you dont pay it they can seize the boat? if not then what is the penalty for not paying it if you get pulled over? i'd be inclined to pay a ~$500 penalty a couple times a year over a 10k bill on a BS tax

Yup. Actually considered property tax. I am honestly unsure of the consequences if not paid but we get a property tax bill for the house, each individual vehicle, and the boat.


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[larry_arizona]

Not moving to the Carolina’s, CHECKhttps://media4.giphy.com/media/kclW4QLTnLmfvshm0l/giphy.gif


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[russellsmojo]

Is there more to the overall tax story? Like Texas is no state income, no boat tax like Carolina’s, but big property taxes.


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[mgswake]

We definitely have a state income tax. Gas seems to be cheaper than surrounding states, usually 15-20 cents a gallon.

I owned a ~20k boat from 2011-2015 in South Carolina and I did pay the annual property tax, but it was around $500. I wouldn’t be so upset if it was 2000-3000 I would just bite the bullet and pay, but 8200 seems excessive.

I also paid sales tax on the boat and a registration fee to the DNR.

I actually talked to the auditor today and asked about the consequences, he said the county doesn’t have the resources to seize property. However, you won’t be able to renew registration which is done annually as well in South Carolina. He also said there would be late fees that accrue on the tax bill. I don’t really want an unpaid tax bill just hanging around out there.

[DOCDRS]

Wow, and I thought we had it bad in Canada. Finally, I can smile. Yes we pay 13% on the sales price when buy , but after that it is 0 , zip, zilch, nada, to own the boat every year. Do you have to pay a yearly tax on lawnmowers or snowblowers as well?

[zabooda]

There's got to be a work around that some SC boat owners work know. You could store the boat in the winter in another state and claim that is where it is garaged and use a legitimate address in that state.

[DOCDRS]

Looks like you need the boat registered in another’s name out of state and then the boat can’t be in the state for more than 180 days or less in some counties. Iirc. Also only looks like the tax is on 10.5% of the boats assessed value and down to 6% in some counties. And then the actual tax is that assessed value times the mil rate which may be about 1.2 -1.6 x the value. That’s must be an awfully expensive moomba. IIRC and I could be in err. Or is the one figuring out the tax envious of boat owners

[larry_arizona]

Looks like you need the boat registered in another’s name out of state and then the boat can’t be in the state for more than 180 days or less in some counties. Iirc. Also only looks like the tax is on 10.5% of the boats assessed value and down to 6% in some counties. And then the actual tax is that assessed value times the mil rate which may be about 1.2 -1.6 x the value. That’s must be an awfully expensive moomba. IIRC and I could be in err. Or is the one figuring out the tax envious of boat owners

Boat is a 2023 SL for clarity lol.


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[Holdmybeer]

Look up Lexington County in SC. I couldn't believe the OP tax bill either.

2023 SL is not a cheap boat but 10.5% then 6% of that isn't a horrible number. The millage in that county is crazy. I think school tax adds $6k to the bill....ouch!

LLC in Delaware and have the business own the boat. 180 days would be April-September.

[DOCDRS]

Tax on a 200,000 boat works out to about 3200 depending on location in sc as per the sc tax calculator. Still abhorrent as you also pay vehicular tax and state tax. I figure with all these I may actually be paying less tax in Canada. Still trying to figure out if my lawnmower would be taxed ?????? Or if I would get a green rebate as it is electric????

[mgswake]

DOCDRS, actually it is county dependent as the millage rate varies. Some counties are higher than others. My county valued my boat at 180,000 and the tax was 9800.

[DOCDRS]

DOCDRS, actually it is county dependent as the millage rate varies. Some counties are higher than others. My county valued my boat at 180,000 and the tax was 9800.

I was using this county, your county mil rate seems more than 3x this ones.
https://forum.moomba.com/blob:https://forum.moomba.com/3782cb0e-bc1c-42a3-87cb-7c245efba4d330723

[MJHSupra]

I was just re-reading the first post, dang, 10k is a big ticket for that once a year payment.

Folks in TN would flip their lids.

[Mxmark4]

Agreed. I am already bitter paying sales tax on a used item as it is. 10k a year would mean I am finding a new hobby. That would decimate my fuel budget for the year.

[zabooda]

You really need to find another state to register it in. Out west, many used Idaho as they will mail the registration to you. Obviously, finding a state near you would make more sense. Just have to keep a low profile.

[mgswake]

I tend to not have the best luck at times. My understanding is you could register and title in another state, but the boat should be used primarily (>50%) in the state it is titled/registered. Chances of someone doing something are low, but you may face fines, penalties, and/or interest if not using in the primary state and somehow you get reported or possibly stopped by dnr. That’s my understanding.

[mgswake]

I was just re-reading the first post, dang, 10k is a big ticket for that once a year payment.

Folks in TN would flip their lids.

Lucky for me, I took them the bill of sale and they reduced the tax bill to $8200

[smitty75]

Lived in SC for 16 years, now in NC. Sales tax is capped at $500 regardless of the boat price which is nice, but then you definitely pay it back in annual property taxes.

See if your dealer will give you an appraisal on it, they will usually accept it and base your taxes on the appraisal. Saved a lot of money that way on camper and boat taxes.


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[jordankmc]

In Virginia it varies by county. Where I keep my boat, personal property taxes are 2%.