Relocating to South Carolina-Tax

[scarlet]

I have done a search, but wasn't able to find an answer to my question.

I bought my boat in Delaware, which is a no sales tax state and have kept it there for 3 years. I'm thinking of relocating it to South Caroline for a while (I will NOT be a resident there). The boat is registered in Delaware and I plan on keeping it registered there.

As I waded through the tax info on line, I see that S. Carolina has both sales and use tax, but is very vague as to how that is to be applied. For example, it states that if you purchase items out of state, but take delivery in SC, you need to pay sales tax. So, buying a blender on line, but having it delivered to SC, you would pay sales tax. Totally reasonable. However, if you move to SC, would they reasonably expect you to pay sales tax on all your household items?

Regarding Boats, I do understand states like Maryland and Florida, will require you to pay sales tax if you move the boat there. It states so clearly in the tax code. But SC isn't so clear.

Does anyone have first hand info on bringing a boat to SC, and paying sales tax years after purchasing?

[Montanan]

Hi there.

Your Delaware registration only remains valid if the State of Delaware is the vessel's principal place of use. Delaware is a non-titling state, [registration only] hence you will NOT need to untitle the vessel, you will just deregister from the State of Delaware when it departs to a new principal place of use.

If you relocate the vessel to South Carolina the vessels title and registration should be changed to be compliant.


FYI as to Titling & / or registration and taxations.

These are the types of taxations in S.C. that can be applied to a vessel:

A Casual Excise / Use Tax
Annual Personal Property Tax

Boating - Title and Register a Watercraft or Outboard Motor in SC
Casual Excise Tax

https://www.dnr.sc.gov/boating/Titli...xcise_Tax.html

Casual excise tax is charged upon the issuance of a title or proof of ownership for a boat or motor. The casual excise tax for a boat or boat and motor purchased as a package is 5% of purchase price with a maximum fee of $500.00. The casual excise tax for a motor purchased alone is 6% with no maximum.

Fee Amount Type of Fee
5% of purchase
or $500 Casual Excise Tax - The fee for casual excise tax 5% of the purchase price and has a maximum of $500 if the boat and motor are purchased from same owner. When a boat is purchased as one unit, the casual excise is 5% of the purchase and has a maximum of $500.
6% of purchase Casual Excise Tax - When an outboard motor is purchased as one unit, the casual excise is 6% of the purchase and has no maximum fee.
Casual Excise Tax:
Casual excise tax is charged upon the issuance of a title or proof of ownership for a boat or motor. The casual excise tax for a boat or boat and motor purchased as a package is 5% of purchase price with a maximum fee of $500.00. The casual excise tax for a motor purchased alone is 6% with no maximum.

Boat and Motor or Boat Only: Purchase Price X .05, the maximum tax is $500
Motor Only: Purchase Price X .06. There is no maximum tax.

If you did not pay taxes out-of-state, then you submit 5% tax with the registration fee.

Tax Exempt if Purchased from Immediate Family
If you acquire the watercraft or outboard motor from immediate family, you are exempt from the excise tax. Immediate family includes:

parent
child
sister
brother
grandparent
grandchild
spouse.
You must complete the exempt form on the back of the Watercraft/Outboard Motor Application to be exempt.

Military persons are not exempt from Casual Excise or Use Tax on boats and Outboard Motors.




https://dor.sc.gov/tax/casual-excise

CASUAL EXCISE TAX×

Phone: 803-898-5000
Email: SalesTax@dor.sc.gov
​​​​

What is Casual Excise Tax?
Effective July 1, 2017, South Carolina Code Section 12-36-1710(A) imposes a 5% casual excise tax on the issuance of every certificate of title, or other proof of ownership, for every boat, boat with motor permanently attached at time of sale, or airplane, required to be registered, titled, or licensed. The tax rate is 5% of the “fair market value” of the airplane, boat, or boat with a permanently attached motor and will not exceed $500.

The tax rate is 6% of the "fair market value" of a boat motor that is purchased alone (not permanently attached to the boat). The measure of the casual excise tax is fair market value of the item to be licensed, titled or registered. Fair market value is the purchase price less any trade-in allowed, or the value shown in a national publication (NADA) of used values adopted by the SCDOR less any trade-in allowed. The purchaser is liable for the casual excise tax. Department of Natural Resources, and/or the Division of Aeronautics may not issue a license or transfer title until the state sales or use tax has been paid.

Exclusions
Excluded from the casual excise tax are boats, motors or airplanes transferred:

to a member of the immediate family (spouse, parents, children, sisters, brothers, grandparents and grandchildren)
to a legal heir, legatee or distributes
to a partnership, from an individual, upon formation of a partnership
to a corporation, from a stockholder, upon formation of a corporation
to a motor vehicle or motorcycle dealer licensed under Code Section 56-3-2310 for the purpose of resale
to a financial institution for the purpose of resale
as a result of repossession to a secured party for the purpose of resale
In addition to the above, the following also are excluded from the casual excise tax:

the fair market value of a boat, motor, or airplane transferred to a seller or secured party in partial payment (trade-ins)
transfers of airplanes specifically exempted by Code Section 12-36-2120 from the sales or use tax
boats, motors, or airplanes, where a sales or use tax has been paid on the transaction necessitating the transfer
Local Taxes: Transfers subject to the casual excise tax are exempt from the 0.5% of 1% sales and use taxes.




Boating - Title and Register a Watercraft or Outboard Motor in SC

Reference link: https://www.dnr.sc.gov/boating/Titli..._Registration/

In the state of South Carolina, the law requires all motorized boats and watercraft, except exempted vessels, sailboats, and all outboard motors five horsepower and greater to be titled. By law we must have your completed application and other required documents, which vary by purchase or selling situation, to title and register your boat and/or motor.

In South Carolina, any watercraft propelled by any mechanized means on navigable waters must be registered with the state. To register your boat, you’ll need to complete a Watercraft/Outboard Motor Titling and Registration Application. You may need to complete other forms as well depending on your situation.


If you are selling a boat and/or motor in South Carolina:

You must be the titled owner. If you are not listed as the owner of the title, you must complete the application process with SCDNR prior to the sale.


If you have purchased a boat or motor that has ever been titled and/or registered in South Carolina:

Pay your property taxes in your name with your county
Submit a paid property tax receipt in your name or notice from the county that no taxes are due with your application and other supporting documents.

If you have purchased a boat or motor out-of-state or from a SCDNR permitted marine dealer:

Property taxes will be billed by your county after being titled and/or registered with SCDNR.

Once purchased, your boat and/or motor may be used 60 days from the date of purchase, even with expired or out-of-state decals.

If you have questions about boat titling and registration, please visit our Frequently Asked Questions. If you have any questions about your property taxes, please contact your county tax office.


Purchased Out of State from a Titling State

https://www.dnr.sc.gov/boating/Titli...ing_State.html

If you purchased a watercraft and/or outboard motor from another titling state it must be titled and/or registered in your name with SCDNR. You will need to submit the following:

Watercraft/Outboard Motor Application (completed and signed)
Original Title(s) (completed, signed, and notorized if required)
Written Bill of Sale (if there is an outboard motor)
Pencil tracing (if traceable), or printed photograph of:
Hull Identification Number (Boat)
Serial Number (Motor)
Registration Card for the Boat (if available)
Fees
Note: If you purchased a boat or motor from out of state and it has previously been titled or registered in SC, you must pay property taxes to your county before titling/registering with SCDNR. You can look up any boat or motor under SC Boat Facts to determine whether or not it has been titled or registered in SC.

Effective January 1, 2020 your watercraft registration will be valid for one year from the date you purchased the boat. The fee will be $10.00 per year for an annual registration. In 2021, the $10.00 renewal fee will be included with your county property tax notice. SCDNR will send renewal notices for tax exempt boats.


Purchased Out of State from a Nontitling State

https://www.dnr.sc.gov/boating/Titli...ing_State.html

If you purchased a watercraft and/or outboard motor from a nontitling state, then it needs to be titled and/or registered with SCDNR. You will need to submit the following:

Watercraft/Outboard Motor Application (completed and signed)
Written Bill of Sale for the watercraft and outboard motor
Pencil tracing (if traceable), or printed photograph of:
Hull Identification Number (Boat)
Serial Number (Motor)
Registration Card for the Boat (if available)
Fees
Note: If you purchased a boat or motor from out of state and it has previously been titled or registered in SC, you must pay property taxes to your county before titling/registering with SCDNR. You can look up any boat or motor under SC Boat Facts to determine whether or not it has been titled or registered in SC.

Effective January 1, 2020 your watercraft registration will be valid for one year from the date you purchased the boat. The fee will be $10.00 per year for an annual registration. In 2021, the $10.00 renewal fee will be included with your county property tax notice. SCDNR will send renewal notices for tax exempt boats.


Property tax is administered and collected by local governments, with assistance from the SCDOR [Department of Revenue].

Real and personal property are subject to the tax. Approximately two-thirds of county-levied property taxes are used to support public education. Municipalities levy a tax on property situated within the limits of the municipality for services provided by the municipality. The tax is paid by individuals, corporations, partnerships, etc. who own property within the state.

Personal Property Tax | County of Lexington

1. What is personal property?
In South Carolina, personal property encompasses motor vehicles, recreational vehicles, aircraft and watercraft (including boats, motors, and personal recreational vehicles like wave runners and jet skis, etc.).

Personal property tax also applies to equipment, furniture, fixtures and machinery primarily used by businesses.

2. When are personal property taxes due?
With the exception of motor vehicles, personal property taxes must be paid by January 15 of the following year, unless that day falls on a county holiday or weekend.

Personal property taxes on motor vehicles and recreational vehicles are due throughout the year on a staggered monthly schedule and must be paid before your license plates can be renewed.
3. How is the value of personal watercraft/aircraft determined?

Values of personal property are kept current through annual updates by the S.C. Department of Revenue and the S.C. Department of Natural Resources.

. . .

Are all boats & motors taxable?
Boats or outboard motors with a fair market value of $500 or less are not taxable.


10. Are boat trailers taxable?

No, not in South Carolina.

Each South Carolina County collects its own annual property taxation on boats

The following is from Dorchester County:

Recommend you determine which county the vessel will reside in as that will be the county in which personal property taxation will be due and you can look up the specific county assessment and procedures.

https://www.dorchestercountysc.gov/g...rcraft-campers

The South Carolina Legislature passed ACT 223 on May 18, 2018, which changes the way in which boats, motors, and watercraft are taxed beginning January 1, 2020. The reason for the change was to protect boat purchasers who were unaware that when purchasing the boat they also acquired any/all delinquent tax associated with the watercraft.

Under ACT 223, the certificate of title for a watercraft requires the seller to certify that all personal property taxes have been paid to date but also that “all current year personal property taxes are the responsibility of the seller unless an otherwise enforceable agreement has been reached between the buyer and seller."

Beginning January 1, 2020 boats, motors, and watercraft will be taxed in the manner as vehicles.

If you purchase a boat from an individual, you will need to visit your County Auditor’s Office to get a bill created and pay it in the Treasurer's office prior to going to SCDNR to get your stickers.

If you purchase a boat from an SC Boat Dealer, the dealer will notify SCDNR who will then send the information to your County Auditor who will prepare a bill that is due 120 days from purchase. This is the same treatment as vehicles now.

Additionally, there is a provision in the bill that will not allow any boat to be taxed twice in a 12 month period.

Application Criteria for 6% Tax Assessment
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
How To Apply
To receive the 6% tax rate residents must complete and submit the Watercraft/Camper Assessment Form and return it to Kimmi Judy in the Auditor’s Office.

Note: All marine equipment, registered as of January 1st of each year, which include boats and motors valued at $500 or less is exempt from property taxes.

All marine equipment tax information is provided to the Auditor’s Office by the South Carolina Department of Natural Resources and the United State Coast Guard. The Auditor’s Office is required to tax from this information. You must notify SCDNR within 15 days of the sale, disposal and/or address change.

Purchasing a Watercraft
Prior to purchasing a watercraft and/or camper residents should:

Use the title number and check with the county in which the owner lives to ensure there are no unpaid taxes. Under state law, all unpaid taxes will become the responsibility of the new owner.

Create New Tax Bill
Previous Law and Procedure
The previous law is provided below. If you had a boat transaction prior to December 31, 2018, this law will still apply as far as delinquent boat taxes are concerned. If you have questions regarding delinquent tax on a boat, motor, or watercraft please contact Kimmi Judy with the Auditor's Office.

Section 50-23-295: (A) A certificate of title to watercraft or an outboard motor may not be transferred if the department has noticed that property taxes for property tax years beginning after 1999, are owned on the watercraft or outboard motor. (B) A person who knowingly sells a watercraft for which he owes unpaid and outstanding property taxes, or on which he knows there is a property tax lien, is guilty of a misdemeanor and up conviction, must be fined not more than one thousand dollars and imprisoned not more than thirty days.

Payment Options
Payments can be made online at DorchesterCountyTaxesOnline.com, in-person at both the St. George and Summerville Treasurer’s Offices, or by mail, using the return envelope, provided with the tax bill.

There will be a $1.50 fee for e-check payments.

All credit and debit card payments (made online or in-person) are subject to a processing fee of 2.5% plus .30. This fee will be added to the total bill.

Questions
Frequently Asked Questions

All questions and/or concerns in reference to boats, motors or watercraft tax should be directed to Kimmi Judy with Auditor's Office at (843) 832-0272.

For questions related to tax payments please contact the Treasurer's Office at (843) 563-0165, option 5.

Pertinent Property taxation code sections:


https://dor.sc.gov/resources-site/pu..._Tax_Guide.pdf

§ 612.3. Private Passenger Vehicles, Motorcycles, General Aviation Aircraft and
Watercraft. The South Carolina Constitution allows, but does not require, the governing
body of a county through ordinance to impose a local sales and use tax to exempt the value
of private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat
motors from property taxes levied in the county. S.C. CONST. art. X, §3. The exemption
(or the rescission of the exemption) is allowed only pursuant to a county referendum that
must be submitted to the voters at the next general election of representatives.
Watercraft and motors that have an assessment of not more than $50 are exempt from
property taxes. SC Code §12-37-220(B)(38)(a). In addition, the governing body of a county
by ordinance may exempt from property tax 42.75% of the fair market value of a watercraft
(other than watercraft classified as a primary or secondary residence under SC Code §12-37-
224). SC Code §12-37-220(B)(38)(b). Watercraft trailers are exempt from property taxes.
SC Code §12-37-220(B)(40).
An antique motor vehicle is exempt from property taxes if it is licensed and registered as an
antique motor vehicle pursuant to Article 23, Chapter 3, Title 56 of the SC Code. SC Code §12-
37-220(B)(48).


§ 221.3. Valuation of Motor Vehicles, Aircraft, and Watercraft. The value of motor
vehicles, aircraft, and watercraft is based on nationally recognized publications, except that
the value may not exceed 95% of the prior year’s value. SC Code §12-37-930. Also valued
in this manner are motor homes, boats and watercraft, and trailers used for camping and
recreational travel that pulled by a motor vehicle if they qualify as a primary or secondary
residence under SC Code §12-37-224. See §218 above.
The property tax on motor carriers’ motor vehicles is annually assessed on an apportioned
basis by the Department. See SC Code §§12-37-2810 through 12-37-2880. Property tax is
also apportioned for boats that are used in interstate commerce and that have a tax situs in
South Carolina (by being physically present an aggregate of 30 days or more in a property tax
year) and in at least one other state. SC Code §12-37-714(1).


§ 310.2. Where Personal Property Is Taxed. SC Code §12-37-890 provides that (1)
business personal property is taxed where it is situated, and (2) nonbusiness personal property
located in South Carolina, or kept or used temporarily out of the state, is taxed at the
domicile of the owner if the owner is a resident of South Carolina; otherwise, such
nonbusiness personal property is taxed at the residence of the person having it in charge. See
also SC Code §§12-37-210 and 12-37-710.
Boats that are not currently taxed in South Carolina and that are not used exclusively in interstate
commerce become taxable if they are present in South Carolina for 60 consecutive days or for 90
days in the aggregate in a property tax year. An alternative aggregate period of either 90 or 180
days may be provided by county ordinance, in which case the number of consecutive days is
disregarded. Boats that are used in interstate commerce and that have a tax situs in at least one
other state become taxable on a proportionate basis in South Carolina by being physically present
in South Carolina an aggregate of 30 days or more in a property tax year. However, time spent in
a marine repair facility pursuant to a written contract for repairs does not count toward
establishing in-state tax situs. SC Code §12-37-714

All the best, hope you will enjoy your boating in South Carolina. It is a comparatively expensive place to have a boat.

[PaulCrawhorn]

Wow!

OP when you get it sorted please post a concise summary?

[denverd0n]

Originally Posted by scarlet

Regarding Boats, I do understand states like Maryland and Florida, will require you to pay sales tax if you move the boat there.

Not in your case, if you were to move to Florida. In Florida, you are exempt from paying the sales/use tax if you have owned and used the boat outside of Florida (but somewhere in the U.S.) for more than six months, before bringing it here.

The "and used" part is important. You cannot buy a boat, leave it sit for six months, and then bring it to Florida and expect to avoid tax. The state may require you to provide evidence that you were actually using the boat outside of the state.

It does not appear to me that SC has that sort of an exception for bringing it to the state after you have owned it for a while. But (not really caring about SC) I did not read through everything Montanan posted all that carefully.

Good luck!

[scarlet]

Originally Posted by denverd0n

It does not appear to me that SC has that sort of an exception for bringing it to the state after you have owned it for a while. But (not really caring about SC) I did not read through everything Montanan posted all that carefully.

Good luck!

This is where it still isn't clear to me. The very detailed tax code provided above doesn't really answer that question.

[Shrew]

Originally Posted by Montanan

H

If you relocate the vessel to South Carolina the vessels title and registration should be changed to be compliant.

A few minor corrections. The vessel can be registered in multiple states and, in fact, may be required to be if the vessel exceeds each states registration requirement for time. (e.g. 6 months in Florida and 6 months in Delaware).

The title and the registration are mutually exclusive. You can have the vessel documented with the USCG. This would title the vessel at the federal level. You can still register the vessel if it's documented. If the vessel maintained a valid Delaware registration in parallel, they do not have to move the title.

[Montanan]

Originally Posted by denverd0n

Not in your case, if you were to move to Florida. In Florida, you are exempt from paying the sales/use tax if you have owned and used the boat outside of Florida (but somewhere in the U.S.) for more than six months, before bringing it here.

The "and used" part is important. You cannot buy a boat, leave it sit for six months, and then bring it to Florida and expect to avoid tax. The state may require you to provide evidence that you were actually using the boat outside of the state.

It does not appear to me that SC has that sort of an exception for bringing it to the state after you have owned it for a while. But (not really caring about SC) I did not read through everything Montanan posted all that carefully.

Good luck!

The Casual Excise [a.k.a. Use] taxation assessed by South Carolina is a one time fee due upon titling / registration of the vessel with SC, and is trivial in that it is capped at $500.

The annual personal property taxation is the real unpleasant kicker, being 10.5% or 6% [if it is your second home, i.e., provided a degree of tax relief].

The rules of SC are simple but detailed, hence the lengthy post and do read the referenced links and the links on those referenced links.

These are standard forms of "privilege" taxations.

Happy boating.

[Montanan]

Originally Posted by Shrew

A few minor corrections. The vessel can be registered in multiple states and, in fact, may be required to be if the vessel exceeds each states registration requirement for time. (e.g. 6 months in Florida and 6 months in Delaware).

The title and the registration are mutually exclusive. You can have the vessel documented with the USCG. This would title the vessel at the federal level. You can still register the vessel if it's documented. If the vessel maintained a valid Delaware registration in parallel, they do not have to move the title.

A State registration remains valid until it isn't which validity changes depending on the Principal Place of Use of the vessel, which for a boat that has gone wondering about for extended periods of time keeps changing during the year, hence the need for new and timely registrations. 50 States, 50 sets of rules, when one enters or leaves a jurisdiction one should ascertain what is required.

Validity of registration should not be confused with expiration date. Registration are annual. Reference below explicitly as to Delaware registration procedural requirements.

Delaware is a Non-titling State; a registration only State.

If the vessel is documented with the USCG then it will not have any State titling, e.g., South Carolina is a titling & registration State.

FYI:

https://oceanskies.com/yachts/guides...20jurisdiction.

Delaware Yacht + Vessel Registration - A Warning!

It is the purpose of this guide to provide information on the registration of yachts in the US State of Delaware and to make existing and prospective users aware of the potential for the system to be challenged by foreign jurisdictions.

Delaware is a U.S. state located on the Atlantic Coast in the Northeastern and Mid-Atlantic regions of the United States. The state is a popular jurisdiction for the formation of companies and corporations.

The Division of Fish and Wildlife Office of Boat Registration is the vessel registration authority for the State of Delaware.

It is not uncommon to encounter Delaware registered yachts cruising internationally and in the Eastern Mediterranean it is arguably one of the most commonly found ‘foreign’ yacht registrations.

The prevalence of so many Delaware registered yachts in these countries is often as result of the low costs of the system and the apparent ease of the process. The perceived strength of an attachment to and the support of one of the world’s leading superpowers is also attractive to many yacht owners.

Although the Delaware yacht registration is a popular system, both existing and potential users should be aware that a Delaware vessel registration is a State Registration which is a local registration applying only to vessels that are principally used within the coastal and inland waters of the issuing state’s jurisdiction.

Importantly US state registration does not grant US nationality to the vessel and thus does not automatically afford access to any international treaty rights, privileges or the protection of the USA.

The vessel is not flagged persay, and is not permitted to wear the USA flag. Internationally the vessel is an unflagged vessel and thus subject to the laws of the nation in which territory it resides and can be impounded / arrested as an undocumented vessel.

Delaware regulations provide that a vessel is deemed to have its state of principal use in Delaware if it is to be used, docked, or stowed on the waters of Delaware for over 60 consecutive days.

Vessels registered in the State of Delaware are accordingly issued with a credit card sized ‘State of Delaware Registration Certificate’, the reverse of which states the state of principal use is Delaware.

It is therefore possible for a foreign jurisdiction to declare the Delaware registration of a vessel to be invalid on the basis that a state registration is not valid for cruising outside US waters and/or the vessel is not used principally within Delaware waters.

If a vessel’s registration is declared invalid then the vessel itself is effectively stateless and in contravention of international maritime law.

In January 2020 The State of Delaware introduced new procedures to crack down on the abuse of the Delaware yacht registration system by owners who are keeping their vessels outside the State of Delaware.

The new procedure requires owners to declare as follows:

“I declare under penalty of perjury that I / we am / are the legal owner(s) or agents thereof, of the vessel described in this application and that “DELAWARE IS THE STATE OF PRINCIPAL OPERATION” for this vessel.”

“I declare under penalty of perjury under the laws of Delaware that the forgoing is true and correct.”

“I also acknowledge that I must notify the Division of Fish & Wildlife within 15 days of the owner(s) change of address and/or if the vessel is sold., destroyed, abandoned, becomes documented or IS NO LONGER PRINCIPALLY OPERATED IN THE STATE OF DELAWARE.”

The procedure also carries the following notice:

“FALSE STATEMENTS MADE HEREIN ARE PUNISHABLE BY LAW PURSUANT TO 11 DEL. C. § 1233.”

Making a false written statement under this law is a class A misdemeanour in the State of Delaware. The sentence for a class A misdemeanour in the State of Delaware may include up to 1 year incarceration and a fine, restitution or other conditions as the court might deem appropriate.

Awareness of the limitations of the Delaware registration system is growing amongst foreign port authorities and owners of Delaware registered vessels that are kept and primarily used outside the State of Delaware can expect increased scrutiny that may result in their vessels being controlled and potentially detained.

As the Delaware registration is not an internationally valid registration it follows that Delaware registered vessels that are operating primarily outside the State of Delaware can be treated as unregistered or stateless vessels meaning that local authorities can impose their own jurisdiction on the vessel which can effect the tax status of a vessel and the rules under which it must operate.

There are also potentially issues in other areas such as the validity of a vessel’s insurance policy.

[PaulCrawhorn]

I thought Florida always required their use tax be paid if there never was an offsetting sales tax paid in any previous state?

[denverd0n]

Originally Posted by PaulCrawhorn

I thought Florida always required their use tax be paid if there never was an offsetting sales tax paid in any previous state?

No, what I stated above is correct. If you have owned and used the boat elsewhere in the U.S. for more than six months, before bringing the boat to Florida, then you will not owe any sales/use tax.


The relevant statute is Title XIV, Chapter 212.06, Section(8)(a), which reads...


"Use tax will apply and be due on tangible personal property imported or caused to be imported into this state for use, consumption, distribution, or storage to be used or consumed in this state; provided, however, that, except as provided in paragraph (b), it shall be presumed that tangible personal property used in another state, territory of the United States, or the District of Columbia for 6 months or longer before being imported into this state was not purchased for use in this state. The rental or lease of tangible personal property which is used or stored in this state shall be taxable without regard to its prior use or tax paid on purchase outside this state."


The exception in paragraph (b) that is referred to has to do with commercial salt-water fishing vessels.


The entire law can be found here: Statutes & Constitution :View Statutes : Online Sunshine

[gonesail]

as previously stated .. the excise tax in SC is capped at 500.00. since you have paid no sales tax .. they will probably require it.

[Montanan]

South Carolina has the legal authority to tax transient property belonging to a non-resident and the amount of the tax bill can be quite hefty.

Below is a brief summary of the code provisions as well as some useful links.
S.C. Code section 12-37-714 provides, in pertinent part, that transient non-commercial personal property, including boats and motors, owned by non-residents acquires a tax situs within the state when it is within the state for sixty consecutive days or ninety days in the aggregate within a tax year. There is an option for counties within the state to increase the number of aggregate days to 180 days within the tax year, which all coastal counties within the state have done by county ordinance.
For vessels used in interstate commerce which are within South Carolina for at least 30 days, the state is required to pro-rate the tax bill based on the number of days within the jurisdiction. If your vessel is a charter vessel or you can otherwise show that it is not exclusively used recreationally, then you may be able to qualify for a pro-rated bill.
There is also a time-tolling provision within the statute which provides that the time does not run for a vessel undergoing repairs in a boatyard if the owner can also provide a written contract for the repairs.

The default annual property tax assessment ratio in South Carolina is 10.5% with no cap. This can lead to some very high tax bills. For the last few years, the highest tax bill paid in South Carolina has been in the hundreds of thousands of dollars. Granted, this has been on a very expensive yacht, but the tax amount is still rather staggering. In most counties, the assessment ratio can be lowered to 4% or 6% if the owner's vessel qualifies for and the owner applies for a primary residence or secondary residence exception. See S.C. Code 12-37-224, et. seq. Some counties have lowered the default assessment ratio to 6% for all boats within the county.

Property taxes will be billed by your county after being titled and/or registered with S.C. Department of Natural Resources.

S.C. made some changes to their vessel registration and taxation laws in 2020 which are being implemented over three years.

BEginning in 2020 new boat registration renewals will now be done on an annual basis rather than every three years. The fee for the new registration will be $10.

Under the new law, property taxes for boats will be collected by counties in advance for the coming year. Under the old system, property taxes for boats were collected “in arrears,” or for the previous year.

Once the property taxes and registration renewal fee for the coming year have been paid by the owner, the county will notify SCDNR to issue a new set of annual registration numbers for that vessel.

These changes to state law were requested by counties to aid them in collecting the property taxes due on boats.

Key things for current/prospective boat owners to keep in mind

Currently Registered Boats: Current numbers & decals will remain valid until they expire. Counties won’t begin billing current owners for the annual registration until January of 2021, and only then once their current registration is due to expire. So, for a registration renewed in 2019, that owner’s tax bill should not reflect a charge for annual registration until 2022.

Property Tax Questions: The change to annual registrations may change the look of your yearly tax notice from your county of residence. Counties will begin issuing the new, prospective, tax notices for boats registered within the county beginning in 2020. Individual counties will determine and implement changes to their tax collection processes as directed by the new law.
Please note that questions about a boat owners’ individual tax bills MUST be directed to that county’s Auditor or Treasurer’s Office. SCDNR Boating Office assistants will NOT be able to assist owners with questions about their individual tax bills/notices.

Month of Expiration for New Registrations (new boats or used boats coming from out-of-state): New registrations will be based on the DATE OF SALE. For example: Upon registration, a boat purchased in January will receive a title and registration decal valid through the following January, regardless of when the owner applies for the registration (late fees will apply to registrations initiated more than 30 days after the date of purchase). A tax bill for the year covered by the registration will then be mailed by the county, and in subsequent years the county will mail a bill that includes the annual registration renewal.

In-State Changes of Ownership (transfer of an already-registered boat from one SC owner to another): After purchase, the new owner will need to visit their county tax office FIRST to pay the taxes due for the coming year. The new owner can then apply for title & registration in their name using the paid tax receipt and other required documents. (They will need to apply within 30 days of purchase to avoid late fees.)

Current Owners: The expiration month on the vessel’s current decal will continue to be the month that property taxes are due on that boat. For example, if the boat registration expires in June, then both property taxes and annual registration fees for the coming year will be due in June. (Again, current three-year registrations will be valid until the year of their expiration).

Non-taxable Boats Titled and Registered in S.C.: SCDNR will continue to mail renewal notices for boats that are non-taxable (boats that a county has determined have reached the end of their taxable life or dollar threshold). Their expiration month will not change, and the renewal notices will become annual.

Purchasing a Used Boat: SCDNR strongly recommends that prospective buyers research the registration and tax status and any potential recorded liens of any S.C.-registered boat BEFORE purchasing it, using our free online look-up service. Get the facts before you buy! at: http://www.dnr.sc.gov/boating.html.

[flightlead404]

Originally Posted by Montanan

The Casual Excise [a.k.a. Use] taxation assessed by South Carolina is a one time fee due upon titling / registration of the vessel with SC, and is trivial in that it is capped at $500.

The annual personal property taxation is the real unpleasant kicker, being 10.5% or 6% [if it is your second home, i.e., provided a degree of tax relief].

The rules of SC are simple but detailed, hence the lengthy post and do read the referenced links and the links on those referenced links.

These are standard forms of "privilege" taxations.

Happy boating.

Wait, this doesn't make sense

You're saying that as a non-SC resident with a USGC documented and GA registered $100k sailboat I should be paying SC ~$10k/year for the privilege of keeping my boat in a marina there for 6 months of the year?

That doesn't sound likely to me. If that were true and enforced it would decimate the marina industry.

[Montanan]

Originally Posted by flightlead404

Wait, this doesn't make sense

You're saying that as a non-SC resident with a USGC documented and GA registered $100k sailboat I should be paying SC ~$10k/year for the privilege of keeping my boat in a marina there for 6 months of the year?

That doesn't sound likely to me. If that were true and enforced it would decimate the marina industry.

Why would a boat that is kept in South Carolina be registered with the State of Georgia?

[slipaway]

Wow... lots of tax info that is hard to sort through. One thing I have noticed reading posts like that is that many people confuse "excise tax", "sales tax", "use tax", "personal property tax". Further the issue of registration and titling are also thrown in. Each of these are different with different applicability to recreational vessels depending on the state. Some taxes such as excise, sales and use taxes are one-time assessments upon purchase or bringing a boat into the state permanently. Some states may exempt used boats from these, some don't but may give credit for sales taxes paid in another sytate. On the other hand, personal property taxes are annual and in states that have one, may be assessed at different rates depending upon location (such as in VA). Titling fees are usually one-time fees upon application while registration is usually annual. And to complicate things even more, different rules may apply to US documented vessels vs. state registered. And yes, a documented vessel may be required to be registered in the state if principal use, but cannot be titled in a state.