NORTH MYRTLE BEACH, SC (WMBF) - South Carolina's gas tax, which goes into effect July 1, will raise the sales tax cap on boats from $300 to $500, according to the South Carolina Department of Revenue.
This means anyone who buys a boat in South Carolina after July 1 will more than likely have to pay a little extra.
In the long run, since most boats cost thousands of dollars anyway, an extra $200 probably won't make that big a difference to anyone buying boats.
However, one North Myrtle Beach yacht salesman said the change still isn't good for business.
"Having the tax is not going to help boat sales," Jeff Boger, owner of Berry-Boger Yacht Sales, said. "Most of our sales are larger-ticket items that the cap on the sales tax does play into. So, essentially, it's going to cost most of our buyers $200 more per boat that they buy."
Boger said the extra taxes won't affect his day-to-day life a whole lot, but he wishes he would have gotten more notice.
"I was unaware it was passed in the gas tax bill," he said. "I haven't seen any notification and apparently in two weeks, we're changing the rate that we're collecting taxes on. It's just a dollar amount that's collected, so it won't really be a big administration issue for us. It would've been nice to know ahead of time since we've already advised some people what the taxes will be and if they close next month, then it's going to be different than what we told them."
Boger also thinks it's not the best idea to raise sales taxes, even though it's not by much.
"That probably isn't going to, in itself, have a drastic impact on our business, but it's like everything else in government; adding on fees and fees and fees, eventually it gets to the point where it deters business," Boger said.