All Roll Calls
Yes: 267 • No: 20
South CarolinaH 3858126th General Assembly (2025-2026)HouseWALLET
AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING ARTICLE 1 OF CHAPTER 23, TITLE 50, SECTION 50-23-345, AND SECTION 50-23-375, ALL RELATING TO THE TITLING OF WATERCRAFT AND OUTBOARD MOTORS, SO AS TO PROVIDE FOR REGULATIONS ON WATERCRAFT AND OUTBOARD MOTORS; BY AMENDING SECTION 12-37-3210, RELATING TO TAX NOTICES FOR BOATS AND BOAT MOTORS, SO AS TO MAKE A CONFORMING CHANGE; BY AMENDING SECTION 50-23-370, RELATING TO WATERCRAFT CERTIFICATES, SO AS TO MAKE A CONFORMING CHANGE; BY AMENDING SECTION 12-37-220, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO PROVIDE A PROPERTY TAX EXEMPTION FOR 42.
Sponsored By: Gary S. Brewer, Jr. (Republican)
Signed by Governor
Summary
Taxation on boats
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Bill Overview
Analyzed Economic Effects
15 provisions identified: 3 benefits, 1 costs, 11 mixed.
Lower boat property taxes statewide
Beginning with property tax years after 2026, the law exempts 42.8571% of a boat’s fair market value from property tax. The break phases in over three years: about 14.2857% in year one, 28.5714% in year two, and the full 42.8571% in year three and after. This exemption does not apply if the boat is classified as a primary or secondary residence. If a county also offers a 42.75% break, you only get the higher one, not both. Counties may adopt the 42.75% break through 2029, but that county option is repealed for tax years beginning after 2029. Boats already exempt by other law or treated as a residence keep those existing rules.
Boats and motors taxed as one
Starting January 1, 2027, counties assess a boat and any attached outboard motor as one unit for property tax. If the boat is powered only by a motor under 5 horsepower, the county taxes only the hull value.
New outboard registration and decal rules
Starting January 1, 2027, you must register any outboard motor of 5 horsepower or more (including electric) used on South Carolina waters. Register within 30 days of getting the motor and pay a $10 fee; a one-year term applies. Late fees are $15 after 30 days and $30 after 60 days. Put the decal on the right side of the motor casing, and do not display a number or decal on any craft or motor it was not issued for. Some motors are exempt, like those with another state’s approved numbers used here fewer than 60 straight days, U.S. government vessels, lifeboats, tenders, racing boats, federally exempt, Coast Guard–documented vessels, and valid temporary registrations. Volunteer rescue squad–owned motors used only for squad work do not pay registration fees. You may add a Transfer on Death beneficiary for $10; at death, heirs show proof of death and do not need a bill of sale.
Pay boat taxes before title or tags
You must show a county tax receipt to get a boat title or certificate of number. Dealers can title a sold boat without the receipt, but the county is notified to collect the tax. Starting January 1, 2027, county auditors send tax notices and the department will not issue a certificate unless you show proof the tax is paid. If your boat is first taxable in a county, you must file a sworn property tax return before applying for the number and certificate. Boat taxes are due within 120 days of purchase, and no certificate is issued until that year’s tax is paid. A title or motor registration cannot be transferred if taxes are owed. Sellers must certify taxes are current; violating this is a misdemeanor (up to a $1,000 fine or 30 days in jail) and the seller owes the buyer triple direct damages plus costs. County auditors must mail renewal notices at least 45 days before expiration and process renewals.
When boats in SC owe tax
Starting January 1, 2027, a boat not already taxed here and not used only in interstate commerce becomes taxable if it is in South Carolina 60 straight days or 90 days total in a year. A county may set the rule at 90 days total, or raise the total-day trigger up to 180 days. Time in a repair shop under a written repair contract does not count. Boats used in interstate commerce and present in South Carolina at least 30 days in a year are taxed on a share of value: fair market value times (days in state ÷ 365).
New permits and rules for boat dealers
Marine dealers must get a yearly permit ($10), keep a business site (not a home), and generally sell at least 10 boats or motors a year to renew. Dealers can buy demo numbers for $30 each (up to nine if selling, one if service‑only); each demo use is limited to 72 hours, and misuse brings fines and a one‑year suspension on a second offense. Dealers must collect a trade‑in change‑in‑status form and file it within 30 days, and must have a manufacturer/importer statement of origin for new inventory. Starting January 1, 2027, dealers must complete the buyer’s outboard motor registration at delivery and file it within 30 days; inventory motors do not need registration until sold if the dealer holds the statement of origin. Boat liveries cannot let a vessel leave unless it is registered, numbered, and titled. General violations are misdemeanors with fines from $25 to $500 and up to 30 days in jail; repeated or fraudulent dealer conduct also triggers minimum fines and 90‑day permit suspensions.
Counties handle outboard renewals, no fees
Starting January 1, 2028, your county auditor mails your outboard renewal notice at least 45 days before it expires and processes your renewal within 7 days. The Department must file registrations it receives with the fee and keep public records of owners and motors starting January 1, 2027. The Department may not charge counties online access fees for watercraft records starting January 1, 2027, or for outboard registration data starting January 1, 2028. The Department can write, file, and publish rules to run the system. Older code sections are repealed January 1, 2027.
Stronger anti-theft checks for boats
Owners, police, and insurers must report stolen boats and motors to the department right away and report when they are recovered. The department keeps and shares stolen and recovered records. Police can inspect marinas, salvage yards, repair shops, and similar sites with an owner or employee present. It is illegal to use fake or forged titles or bills of sale, or to buy or sell a boat you know is stolen.
Stronger enforcement against boat theft
The department may hire enforcement officers with peace‑officer powers statewide. They can investigate title applications and inspect boats and motors to find stolen property and stop fraud. Fee revenue is split to fund this work: for example, 70% of title fees and 67% of registration and renewal fees support law enforcement. Money goes to a special fund that carries forward year to year.
Clearer boat titles and lien rules
The law sets clear lien priority based on the order the department records liens on the title. Lenders perfect a lien by filing the title application; if done within 30 days, it relates back to the agreement date. When a lien is paid off, the lienholder must clear it and provide the title within 30 days. If a lien on the title cannot be verified, you can send certified mail to the recorded lienholder; no reply in 30 days makes the lien unenforceable and the title is cleared. A duplicate title number does not change county property tax already noticed. You can get a clear title without prior proof by mailing the last owner and lienholder, publishing notice three times, and waiting 30 days with no claim and no theft report. It is illegal to possess, operate, or sell a boat or motor without the proper title papers.
ID number rules for boats and motors
Boats must use the maker’s hull ID; if missing or homemade, the department assigns one and the builder must meet U.S. Coast Guard safety rules before selling. Outboard motors must have a maker’s serial number in at least two places, or use a department-assigned number. Makers must put IDs in required spots and tell the department if they use a different spot. New boats and motors cannot be sold without permanent and hidden IDs. It is illegal to remove or alter an ID without written permission from the department and the U.S. Coast Guard.
Penalties and suspensions for title fraud
Getting a title, number, or decal by fraud is a misdemeanor with up to a $500 fine and/or up to 30 days in jail, and the document is void. Making a false statement to the department is a misdemeanor with a $50–$500 fine and/or up to 30 days in jail. The department can suspend or revoke a title or registration obtained by fraud or error, or when the item is scrapped or registered in another state, and can seize the certificate. Recorded liens remain valid, and owners must mail in the certificate when told.
Temporary use for boats and motors
You may run a newly bought boat with a temporary number for up to 60 days while the full number is processed. The year’s property tax must be paid first, and you must carry the bill of sale. Starting January 1, 2027, you may operate a boat for 30 days under a paid tax receipt if the certificate is not approved right away. You may run a newly bought outboard for 60 days while your application is pending if you carry the bill of sale. Starting January 1, 2028, you may operate an outboard for 30 days under a paid tax receipt when approval is delayed.
New boat titling rules and fees
Boats kept or mainly used in South Carolina must be titled, and you must report a sale or disposal within 30 days. Some items do not need a title, including U.S. Coast Guard–documented vessels, human‑powered craft, common water‑sport devices, and outboard motors. For titling and county tax, a boat includes any affixed outboard motor. Apply for title within 30 days or pay a $15 late fee after 30 days and $30 after 60 days. Fees are $10 for a title, $5 for a duplicate document or decal, and $10 to set up or change a Transfer on Death. Volunteer rescue squad boats used only for squad work do not pay these fees. If you get a boat by inheritance, repossession, or other legal process, you must promptly apply and provide the required papers.
Electronic boat titles and small fees
The department runs an electronic system for titles and liens. Businesses and lenders who regularly sell or finance boats must use it. The department may charge up to $5 per electronic transaction, and lenders or other commercial entities may also charge owners up to $5 per transaction. If a lienholder ends an owner’s interest, the lienholder must submit the last title, a new title application with fee, and an affidavit with court or similar proof. A lienholder holding a boat for resale does not need a new title until sale, but must provide documents at transfer.
Sponsors & Cosponsors
Sponsor
Gary S. Brewer, Jr.
Republican • House
Cosponsors
Lucas Atkinson
Republican • House
Brandon Newton
Republican • House
B.J. Cox
Affiliation unavailable
Brandon L. Cox
Republican • House
William H. Bailey
Republican • House
Nathan Ballentine
Republican • House
Thomas Beach
Republican • House
T. Case Brittain, Jr.
Republican • House
Joseph M. "Joe" Bustos
Republican • House
Cody T. Mitchell
Republican • House
Micajah P. "Micah" Caskey IV
Republican • House
Donald G. "Don" Chapman
Republican • House
April Cromer
Republican • House
Sylleste H. Davis
Republican • House
Shannon S. Erickson
Republican • House
Cally R. "Cal" Forrest, Jr.
Republican • House
Stephen D. Frank
Republican • House
Craig A. Gagnon
Republican • House
Daniel Gibson
Republican • House
Leon D. "Doug" Gilliam
Republican • House
Thomas Lee Gilreath
Republican • House
Thomas Duval "Val" Guest, Jr.
Republican • House
Brandon Guffey
Republican • House
William "Bill" Hager
Republican • House
Kevin Hardee
Republican • House
Thomas F. "Tom" Hartnett, Jr.
Republican • House
William G. "Bill" Herbkersman
Republican • House
Lee Hewitt
Republican • House
William M. "Bill" Hixon
Republican • House
Harriet A. Holman
Republican • House
William C. "Chris" Huff
Republican • House
JA Moore
Democrat • House
Jeffrey E. "Jeff" Johnson
Republican • House
Jermaine L. Johnson, Sr.
Democrat • House
Wallace H. "Jay" Jordan, Jr.
Republican • House
John Gregory "Jay" Kilmartin
Republican • House
Roger K. Kirby
Democrat • House
Kathy Landing
Republican • House
M. Brian Lawson
Republican • House
Thomas R. "Randy" Ligon
Republican • House
Phillip D. Lowe
Republican • House
Marvin "Mark" Smith
Republican • House
David Martin
Republican • House
W. Scott Montgomery IV
Republican • House
Dennis C. Moss
Republican • House
Murphy
Affiliation unavailable
Melissa Lackey Oremus
Republican • House
Fawn M. Pedalino
Republican • House
Thomas E. "Tommy" Pope
Republican • House
Robby Robbins
Republican • House
J. Todd Rutherford
Democrat • House
Richard Blake Sanders
Republican • House
Heath Sessions
Republican • House
Travis A. Moore
Republican • House
Bill Taylor
Republican • House
James E. Teeple
Republican • House
Jackie R. Terribile
Republican • House
Chris Wooten
Republican • House
Richard L. "Richie" Yow
Republican • House
Roll Call Votes
House vote • 3/24/2026
(Taxation on boats)Concur in Senate Amendments
Yes: 111 • No: 0
Senate vote • 3/4/2026
(Taxation on boats)2nd Reading
Yes: 39 • No: 1
Senate vote • 3/4/2026
(Taxation on boats)to lay on the table
Yes: 28 • No: 12
House vote • 5/7/2025
(Taxation on boats)Passage of Bill
Yes: 89 • No: 7
Actions Timeline
Act No. 109
4/2/2026legislatureEffective date See Act for Effective Date
4/2/2026legislatureSigned By Governor
3/30/2026GovernorRatified R 116
3/25/2026legislatureRoll call Yeas-111 Nays-0
3/24/2026HouseConcurred in Senate amendment and enrolled
3/24/2026HouseScrivener's error corrected
3/24/2026legislatureRoll call Ayes-39 Nays-1
3/5/2026SenateRead third time and returned to House with amendments
3/5/2026SenateAmended
3/5/2026SenateRoll call Ayes-39 Nays-1
3/4/2026SenateRead second time
3/4/2026SenateAmended
3/4/2026SenateCommittee Amendment Adopted
3/4/2026SenateSpecial order, set for March 3, 2026
3/3/2026SenateCommittee report: Favorable with amendment Finance
2/18/2026SenateReferred to Committee on Finance
5/8/2025SenateIntroduced and read first time
5/8/2025SenateRead third time and sent to Senate
5/8/2025HouseRoll call Yeas-89 Nays-7
5/7/2025HouseRead second time
5/7/2025HouseAmended
5/7/2025HouseMember(s) request name added as sponsor: Kirby, Hixon, Cromer, Gilreath
5/7/2025HouseDebate adjourned until Wed., 5-7-25
5/6/2025HouseMember(s) request name added as sponsor: Forrest, Oremus
5/6/2025House
Bill Text
Introduced
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