Thinking about moving to South Carolina

[Traderjoe]

Anybody in SC? How is boating environment for live aboards?

Any good marinas?

Thanks so much!
Joe

 

[PierreR]

South Carolina use to charge a yearly personal property tax on yachts that was pretty high. I don't know if this is still true. Might make a difference.

 

[oguidry]

First, the yearly property tax question:

All boats are taxed at 10.5%. However, under Section 12-37-224, residents may be eligible for a 6% tax assessment if they meet all of the below criteria.

It is used as a second home
It has sleeping, bathroom and cooking facilities installed by the manufacturer
The interest portion of the indebtedness is deductible, or would be deductible if financed, pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence

Next question was are there any good marina. I guess that depends on your definition of a "good marina". There are probably 15 in Charleston, several in Georgetown, 3 in Beaufort and a number in Hilton Head. You can go to their websites to get a sense of them or look at the reviews on Active Captain. As an example, Safe Harbor Charleston City Marina has 203 reviews and Charleston Harbor Marina has 174 reviews.

 

[psneeld]

I liked Myrtle Beach Yacht Club. I spent a whole summer there when insurance forced me out of Florida. Pretty good Hurricane hole, I was there when Dorian went by.

The slips are owned but they usually have some rented out both short and long term I believe.

 

[DBG8492]

My fiance and I spent over a year there at a marina in Beaufort working on my old sailboat. We left about six months ago after selling the boat.

We are liveaboards, and at first, they were barely tolerant, but that progressed towards friendly and finally to downright congenial as they realized that we were actually going to pay our slip fees on time, keep our boat clean while we worked on it, keep common areas clean, and we would help out if necessary when needed including during hurricane Ian.

Between our old facility in Savannah, and north to Myrtle Beach, that was the only marina we found that allowed liveaboards AND had slip availability. That doesn't mean others didn't have liveaboards who showed up as "month-long transients" and never left - but I never liked being dishonest about my intentions, so I told marinas up front we lived aboard when I called to check.

Having said all that, I was informed by others who lived there until recently that they now have a strict policy against liveaboards except as VERY short-term transients and that all previous tenants have departed for other places.

It's getting much harder to live the lives we've chosen...

 

[Simi 60]

.

It's getting much harder to live the lives we've chosen...

Where you are.

Just as well boats were made to be moved.
Presses button, pushes lever forward.

 

[DBG8492]

Where you are.

Just as well boats were made to be moved.
Presses button, pushes lever forward.

100% - that's the primary reason I live on one :lol:

Once we're done refitting the new (to us) one here in FL, we plan to live on the hook as much as possible.

And I will add that from what I could tell when traveling and looking at boats up the east coast, North Carolina seemed quite hospitable for liveaboards, as did Virginia to a lesser extent.

 

[DavidM]

First, the yearly property tax question:

All boats are taxed at 10.5%. However, under Section 12-37-224, residents may be eligible for a 6% tax assessment if they meet all of the below criteria

10.5% or even 6% annually??? You have to be kidding!

David

 

[DBG8492]

10.5% or even 6% annually??? You have to be kidding!

David

That's accurate.

And they send people to every marina and record the info on every boat there. We saw the tax guy at least once every two weeks.

Once you're there past 6 months, you owe the tax.

Not sure if moving marinas helps but given the digital age, I doubt it.

 

[FWT]

Holy cow. Was half thinking about a move to SC. Forget it.

If I did the math the boat tax might exceed state income tax.

 

[SIBERNUT]

And speaking of tax, I am told SC taxes pension & NC does not.

 

[kthoennes]

Yikes. God bless South Dakota (no tax on boats, or income, or pensions). But then there's no such thing as a year-round boat liveaboard either.

 

[Comodave]

Yikes. God bless South Dakota (no tax on boats, or income, or pensions). But then there's no such thing as a year-round boat liveaboard either.

You mean you won’t live aboard there? Why not…

 

[Comodave]

That's accurate.

And they send people to every marina and record the info on every boat there. We saw the tax guy at least once every two weeks.

Once you're there past 6 months, you owe the tax.

Not sure if moving marinas helps but given the digital age, I doubt it.

I wasn’t too happy paying California 1.5% per year property tax. That is really high.

 

[bowball]

I wasn’t too happy paying California 1.5% per year property tax. That is really high.

Where’s 1.5%? The median rate Is 0.77%. San Diego about that. SF and LA around 1.1%

Importantly this is based on what you paid not the current value, which makes a huge difference if you bought your house more than few years ago.

 

[MYTraveler]

Where’s 1.5%? The median rate Is 0.77%. San Diego about that. SF and LA around 1.1%

Importantly this is based on what you paid not the current value, which makes a huge difference if you bought your house more than few years ago.

Could you cite authority for that? In Los Angeles I pay over 1.2%.

 

[twistedtree]

10.5% or even 6% annually??? You have to be kidding!

David

This can't be right, or there must be more to it. 10% of what? The boat's value? If so, that sounds like a one time use tax. This is pretty common.


For an annual tax, 1/2% or 1% of the boat's value would be typical where there are property or excise taxes on boats.

 

[Larry M]

First, the yearly property tax question:

All boats are taxed at 10.5%. However, under Section 12-37-224, residents may be eligible for a 6% tax assessment if they meet all of the below criteria...

The 10.5 or 6% tax number is only used to calculate the assessed value not what you pay in taxes.

South Carolina Property Tax Rates

Tax rates are determined by local tax authorities by dividing the amount of revenue they need to meet their budget by the total assessed value in the tax jurisdiction. Tax rates are expressed in mills, which is equal to $1 of tax per $1,000 in assessed value. In recent years, the state's average total mill rate has been between 300 and 350 mills.

 

[twistedtree]

The 10.5 or 6% tax number is only used to calculate the assessed value not what you pay in taxes.

South Carolina Property Tax Rates

Tax rates are determined by local tax authorities by dividing the amount of revenue they need to meet their budget by the total assessed value in the tax jurisdiction. Tax rates are expressed in mills, which is equal to $1 of tax per $1,000 in assessed value. In recent years, the state's average total mill rate has been between 300 and 350 mills.

This matches what I've read. 6% to 10% of the fair market value is taxable as personal property. It's not clear what tax rate is applied to that adjusted value, but SC claims to have among the lowest property taxes in the country.


And to be clear, you are NOT paying 6%-10% of the boat's value annually. That would be crazy, and equivalent to paying sales tax every year, over and over again.

 

[MYTraveler]

The 10.5 or 6% tax number is only used to calculate the assessed value not what you pay in taxes.

South Carolina Property Tax Rates

Tax rates are determined by local tax authorities by dividing the amount of revenue they need to meet their budget by the total assessed value in the tax jurisdiction. Tax rates are expressed in mills, which is equal to $1 of tax per $1,000 in assessed value. In recent years, the state's average total mill rate has been between 300 and 350 mills.

A slight clarification since that doesn't address the difference between assessed and appraised values. If a boat has an assessed value equal to its appraised value of $1,000,000 (for easy numbers), under that formula using the midpoint of the mill rate range above, the tax would be 325 X $1M / 1000 = $325,000 (per year!). I am not specifically familiar with South Carolina, but ordinarily, under that approach there is another factor called "assessment ratio" or something similar, and it is a statutorily defined percentage applicable to the property type that is multiplied by the assessed value to get the assessed value. Typically, commercial properties have a higher assessment ratio than residential properties, and in some jurisdictions finer distinctions are made, for example between primary and secondary residences (a cynic would say that the voters get a break, everyone else picks up the slack, particularly "rich" non-residents who only come to town to enjoy their vacation homes). Anyway, if the assessment ratio is 5%, in this example, the tax would be $16,250 per year = 1.6%.

I suspect that the 6% to 10% that people above reported reading about is actaully the range of assessment ratios.

 

[fgarriso]

Delaware LLC ownership?

 

[catalinajack]

First, the yearly property tax question:

All boats are taxed at 10.5%. However, under Section 12-37-224, residents may be eligible for a 6% tax assessment if they meet all of the below criteria.

It is used as a second home
It has sleeping, bathroom and cooking facilities installed by the manufacturer
The interest portion of the indebtedness is deductible, or would be deductible if financed, pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence

Next question was are there any good marina. I guess that depends on your definition of a "good marina". There are probably 15 in Charleston, several in Georgetown, 3 in Beaufort and a number in Hilton Head. You can go to their websites to get a sense of them or look at the reviews on Active Captain. As an example, Safe Harbor Charleston City Marina has 203 reviews and Charleston Harbor Marina has 174 reviews.

Yes, the interest on a second home loan is tax deductible but few folks can utilize the deduction because the standard deduction exceeds their total itemized deductions.

 

[catalinajack]

Delaware LLC ownership?

The tax man does not care who or what owns the boat. The tax is assessed against the property.

 

[DBG8492]

I am not familiar with the finer points of South Carolina property tax law, but I can tell you that I saw $20K sailboats taxed at amounts exceeding $1500.

They go after it like everyone owns a half-million-dollar-plus yacht, but there were only two boats out of thirty or so at this marina that might approach that level. Most were in the $30K range.

The only way to get out of it was to prove that the boat left South Carolina sometime during the 6 month period and then returned. That would reset the clock. However - telling them you were on the hook in another state was not sufficient. They required receipts for a marina or fuel.

 

[Cargile]

Yikes. God bless South Dakota (no tax on boats, or income, or pensions). But then there's no such thing as a year-round boat liveaboard either.

How do you differentiate between income and pensions? Please define pensions. SS? Navy retirement pay? or just pensions from good paying union jobs?

 

[psneeld]

How do you differentiate between income and pensions? Please define pensions. SS? Navy retirement pay? or just pensions from good paying union jobs?

The form you get reporting it.

I Believe pension is on a 1099-R and income is W-2.

 

[MYTraveler]

How do you differentiate between income and pensions? Please define pensions. SS? Navy retirement pay? or just pensions from good paying union jobs?

If there is no tax on either, why is there a need to differentiate? But, one difference is earned versus passive. Also, the entitlement to continued compensation is not dependent upon the provision of further services. It really depends on the context in which a distinction is made.

 

[kthoennes]

In answer to Cargile for South Dakota, the state doesn't tax any personal income regardless of source. Regular job, pensions, dividends, doesn't matter. There is no differentiation here, but you'll still hear that distinction made quite a bit in state-to-state comparisons because some states do differentiate. New Hampshire for example doesn't tax personal income, but they do tax dividend income.

 

[Hippocampus]

We spent most of last winter in Hilton head and loved it. To the point we engaged a realtor to get a deep look around the region ( Beaufort to Savannah). So far decided to not buy but rather continue to snowbird. Used Skull Creek last time. Using Shelter Cove this time.
If you’re moving there would think about going small. Something to fish and overnight with if you’re buying a house or condo. Other plan is go larger and rent the house on 6 month leases which is commonly done. Live on the boat in season.

 

[psneeld]

The difference between pensions and income is they are reported on separate lines...combine them and I am pretty sure your return if electronically sent will be rejected because they are reported to the IRS differently.

Every state gets their taxes differently....some similar some way differently.... depending on your assets, money flow and lifestyle may be less taxed in some more than other states.... but no state is a clear winner for everyone based on research I have seen/heard.