Notice of lower boat taxes in SC!

[islandhopper00]

I found out thru the grape vine that S.C. is offering a tax break to all cruising style boats that have living quarters, bath, kitchen. You can claim it as your second home. The current tax rate is 10.5%, but if you call the county auditors office and get the necessary forms, your tax rate will be lowered to 6%. Unbelievable, I know. The counties are not advertising this for obvious reasons. My own taxes were $1700.00, and after the refund, it went down to about $1000.00. I had already paid my taxes and will recieve a refund. Give your county auditors a call, you have nothing to lose and a bunch of money to gain.
I don't know if N.C. is participating. I think I would call and check though.

 

[Four Suns]

You have a 10% annual tax rate on boats in South Carolina? That's absurd! So if I have bought a 52 DB, I would have to pay like $100,000 per year in taxes on the boat? Am I missing something? Is there some moron out there that think that is good for the economy? Hello? HELLO? Some cities/counties completely wave the property tax on boats here in Virginia... and guess what... they generate more revenue via "jobs" and "consumables" like fuel and such. Imagine that.

Ohhh... they dropped it to 6%... what a freekin' deal... move the boat to another state. If they are going to call it a "second home", why not tax it at typical property tax rates they charge home owners... That would be like 1%.

 

[Four Suns]

Wait... wait...

Your figures don't make sense. How can you be paying $1700 when the tax is 10.5%? Your boat is worth $16,200? It sounds like the tax rate is similar to how property taxes on houses are done where tax is "$1.05 per $100 of value" or something (1.05% and not 10.5%).

 

[islandhopper00]

Gary for President!

The 10.5% tax applies to the appraised value, Then of course there is a formula to assess the real tax charged. So it is not 10.5% of the assessed value. But this is charged every year as a personal property tax. The amount is lower each consecutive year as your boat devalues. So if they lower it to 6% and I save $6 or $700.00, I'm all for it. Don't get me started, I'm from Florida, and when I moved to SC they even started assessing taxes on my vehicles that were already paid for in full and sales tax paid in full up front to the state of Florida. How's that for double taxation.
Get this. If you come to visit in SC by boat and you stay for more than 60 consecutive days or 90 aggregate days in a tax year, and the state finds out about it you could be levied a tax of a 6% on your vessel. Even though you don't live here. Check out Salty southeast cruisers net.

 

[islandhopper00]

By the way Gary, Your rant on another thread about taxes, and the whole IRS situation, and a consumer tax being better for everyone is right on. A drug dealer or criminal isn't paying taxes on their income, but if taxes were changed to consumer tax then they would be paying taxes. Am I saying it right, "consumer".

 

[islandhopper00]

Gary....Gary....Where did you go? Ah heck, I was hoping for some spine tickling responses you so often invoke in me. Shucks.

 

[Dave S]

Wait... wait...

Your figures don't make sense. How can you be paying $1700 when the tax is 10.5%? Your boat is worth $16,200? It sounds like the tax rate is similar to how property taxes on houses are done where tax is "$1.05 per $100 of value" or something (1.05% and not 10.5%).

As Mike said ,the 10.5 percent is used to determine the basis for the calculation and then all the existing tax rates are applied to that number. It's a rip off to be taxed year after year on your cars and boats but it just comes with the territory if you live in South Carolina. If you had a boat valued at $500,000, using the rates assessed in our county and school district, the tax would be $14,742 a year at the 10.5 percent valuation basis. At 6 percent it would be $8,424. Both numbers are pretty bad but I would gladly accept the savings and take the lower number. At least real estate taxes are very low in South Carolina so maybe that's somewhat of an offset as long as you own a home.

As with all government programs, some have beaten the sytem. The tax assessor only knows to tax you if you register your boat with the DNR. So if you Document your vessel with the Coast Guard instead, the tax folks never get notified unless someone turns you in. I know someone at our Marina who owned a 38DA for five years and never paid a red cent.

A big thanks to Mike for posting this. :thumbsup: I didn't know anything about it until he notified me. It's going to save me over $800 this year.:smt038

 

[Four Suns]

I turn into a pumpkin if I am not in bed by midnight.

South Carolina should spend some time and look at how many additional bigger boats would call South Carolina "home port" and what it would do for waterfront development, tourists, service industries, etc... nahh... more politically correct to "stick it to 'em" and watch them just leave the area and be left with nothing. Dollars flowing into an area from outside the area typically have about a 3X multiplier on them. Instead of charging someone $3 in tax, try and get an outsider to spend $1... it's a better choice.

What's that saying? "Pigs get fat and Hogs get slaughtered"

 

[Dave S]

I turn into a pumpkin if I am not in bed by midnight.

South Carolina should spend some time and look at how many additional bigger boats would call South Carolina "home port" and what it would do for waterfront development, tourists, service industries, etc... nahh... more politically correct to "stick it to 'em" and watch them just leave the area and be left with nothing. Dollars flowing into an area from outside the area typically have about a 3X multiplier on them. Instead of charging someone $3 in tax, try and get an outsider to spend $1... it's a better choice.

What's that saying? "Pigs get fat and Hogs get slaughtered"

Logic in government.............you have got to be kidding.:smt043

Seriously, the PP tax is despised by just about everyone here in SC. There was a time when people would find a way to register their cars out of state to avoid the tax. So the state decided that unless you register your cars in SC, you won't get a sizable "discount" on your homeowner taxes. The basis for computing your homeowners tax is 6 percent of the market value of your home unless you paid PP on your cars and then it is 4 percent and all local millage rates are then applied to that basis number. In my case it represents a reduction of over $1700 a year in property taxes.

This policy greatly discourages many folks from buying new cars (to keep their taxes down) or boats or planes or motorhomes, or whatever else falls under the PP tax umbrella. And I assume if you don't have a car the rate stays at 6 percent as well which is really unfair.:smt101

It makes no logical sense whatsoever but I don't assume the laws will change anytime soon.

 

[islandhopper00]

Taxes were one of the deciding points of buying the 240 verses a 260 or 280. I could probably afford a 280 but the taxes and incendentals were out of my reach. That's buying new. I've been struggling with the trade offs of the smaller boat but am learning to live with the compromises. If the taxes stay at the 6% rate I might be able to start looking for more boat. Hope this helps others cause when I found this out it made me happy.

I think I'm a hog, been a hog, pay like a hog, smell like a hog,will get slaughtered like a hog, yes I'm a hog.
Wish I was a pig, try to be a pig, but can't seem to break into the pen with them.

 

[unklbuck]

asked my attorney on this and here is a little blurb from him to me about this:

As set forth in my letter of January 10 (copy attached), the
> attorneys in this firm are licensed to practice law only in Florida.
> Nevertheless, I attach for your review the applicable South Carolina
> revenue rulings regarding their sales/use tax (Ruling # 92-12) and
> property taxes (Ruling 98-12).
> The first ruling confirms that South Carolina sets the maximum sales/
> use tax on boats at three hundred dollars.
> The second ruling states that:
> For the boat of a nonresident used primarily for pleasure to be
> subject to ad valorem property taxes in South Carolina, the boat:
> (1) must be located in South Carolina on December 31 of the year
> prior to the tax year and not removed from the State simply to avoid
> South Carolina property taxes;
> and
> (2) must be located in South Carolina on a more or less
> permanent basis.
> I am not aware of South Carolina defining the term "permanent basis."