South Carolina H 3858: Taxation on boats

Bill Text

2025-2026 Bill 3858 Text of Previous Version (Mar. 24, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3858

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

As Passed By The Senate

March 5, 2026

H. 3858

Introduced by Reps. Brewer, Pedalino, Lowe, C. 
Mitchell, M. M. Smith, B. J. Cox, Chapman, Davis, Sessions, Erickson, Guffey, 
Cox, Hewitt, Teeple, Hartnett, Pope, Rutherford, Brittain, Wooten, Guest, 
Hager, J. L. Johnson, B. Newton, Bailey, Bustos, Gagnon, Gilliam, Herbkersman, 
Holman, Jordan, Lawson, Martin, Murphy, Robbins, Ballentine, T. Moore, 
Montgomery, Sanders, Atkinson, Ligon, Gibson, J. Moore, Caskey, Moss, Huff, 
Beach, Terribile, Kilmartin, Hardee, Taylor, Yow, J. E. Johnson, Landing, 
Frank, Forrest, Oremus, Kirby, Hixon, Cromer and Gilreath 

S. Printed 3/5/26--S. [SEC 
3/24/2026 10:33 AM]

Read the first time May 8, 2025

________

A bill

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 DELETE 
THE REQUIREMENT THAT OUTBOARD MOTORS BE TITLED; 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 12-37-3210, RELATING TO TAX NOTICES FOR BOATS, BOAT 
MOTORS, AND WATERCRAFT, SO AS TO ALLOW THE AUDITOR TO CONSOLIDATE THE TAX 
NOTICE; 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 FIFTY 
PERCENT OF THE FAIR MARKET VALUE OF WATERCRAFT.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Article 1, Chapter 23, Title 50 of the S.C. Code is 
amended to read:

Article 1

Titling of Watercraft and Outboard 
Motors

 Section 50-23-5. For purposes of this article, 
as it relates to the taxing authority of county officials, "watercraft" means 
anything used or capable of being used as a means of transportation on the 
water, including any affixed outboard motor, but does not include: a seaplane 
regulated by the federal government, water skis, aquaplanes, surfboards, 
windsurfers, tubes, rafts, and similar devices or anything that does not meet 
construction or operational requirements of the state or federal government for 
watercraft.

 Section 
50-23-10. Each entity desiring to be a marine 
dealer shall apply for a permit each year. A permit is valid from January first 
to December thirty-first. The permit cost is ten dollars. Applications for 
renewals must be received by December fifteenth each year. A marine dealer 
shall have an established place of business with a street address separate from 
a residence. A marine dealer shall have a valid business license and permit for 
each separate facility. A facility is separate if it is not within the same 
compound or has a separate street address. Marine dealers who sell new or used 
watercraft shall sell a minimum of ten watercraft or outboard motors a year in 
order to renew the permit. A dealer who fails to meet minimum requirements each 
year may request in writing a review of the permit and sales. After review of 
the dealer's records and after good cause has been shown by the dealer for not 
meeting the minimum requirements, the department may renew the permit for the 
calendar year. Permitted marine dealers may apply for demonstration numbers. 
Marine dealers permitted under this article consent to inspections of the 
business and its records during regular business hours by department personnel 
and other law enforcement officers. A dealer who fails to cooperate with department 
inspections forfeits his permit. A marine dealer permit is invalid when a 
change is made to one or more of the following:

 (1) 
location address;

 (2) 
federal employer identification number;

 (3) 
South Carolina tax number;

 (4) 
ownership; or

 (5) 
business name.

 Section 
50-23-11. (A) Dealer demonstration 
numbers are limited to watercraft that are:

 (1) 
held for sale by the dealership or assigned to the dealership, including 
customer watercraft in for service and watercraft being ferried by the 
dealership;

 (2) 
being operated for limited demonstration rides by prospective buyers;

 (3) 
being operated for purposes of buyer demonstration by owners, employees, or 
corporate officers of the dealership;

 (4) 
being tested for service by the dealership;

 (5) 
being temporarily operated by an established customer whose boat is being 
repaired; and

 (6) 
valid from the date of issue until December thirty-first inclusive of each 
year.

 (B) 
The demonstration numbers must not be permanently attached to the vessel b