Frequently Asked Questions 

Why did the South Carolina Legislature pass Act 223? 

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." 

How will Act 223 impact me as a watercraft owner? 

Act 223 ultimately changes the timing of when you will receive a property tax notice for a watercraft (boat, boat motor, Jet Ski etc.). This legislative change causes watercraft property taxes to be issued according to the SCDNR registration renewal month, as opposed to the current method where watercraft property taxes are issued in the fall, with a due date of January 15th.

Does this change my tax amount for watercraft? 

No, Act 223 does not affect the amount owed for watercraft property taxes.

Will my SCDNR registration change? 

Act 223 changes the SCDNR three year registration cycle to an annual registration cycle.

SCDNR three year registration renewal cycle will change to an annual registration renewal cycle. The registration renewals will be phased in to annual renewals over the next few years. These watercraft consist of SCDNR registration renewals that have already expired. 

Will the SCDNR registration fees be included on my tax notice? 

No. SCDNR will issue the renewal notices in the same manner they did in past years.

As of January 2021, the SCDNR registration fee is included on the county property tax notice. The fee will go from a three year fee of $30, to annual fee of $10. 

What if my watercraft still has a few years remaining on my current SCDNR registration? 

There will be a transition period to allow the watercraft with time remaining to complete their three year cycle.

What if my watercraft’s SCDNR registration has been expired for a few years?

If you own a watercraft that has delinquent property taxes, and the SCDNR registration has expired, you will not receive a property tax notice. The property taxes for all expired watercraft with delinquent property taxes will be issued using the new prospective method, based on the SCDNR registration as of January 2020.

How does Act 223 impact my outboard motor?

As of January 2022, all outboard motor property taxes will be billed the month of the SCDNR title month. Outboard motors do not have a registration renewal year, but they do have a title month. As a result, the title month will ultimately be used to determine when the outboard motor will be billed for property taxes. This has fully taken effect since 2022. Newly purchased and titled outboard motors (purchased after Jan 2020) will be billed based on the title month.

The DNR title month for an outboard motor will not always match the registration month for a watercraft. If the outboard motor for a boat has been replaced, the title month will not necessarily match the watercraft’s registration month. As a result, the outboard motor and the watercraft could have two different billing months for property taxes.

What if my watercraft is registered with the U.S. Coast Guard; will this affect me? 

No, Act 223 only impacts watercraft registered with The South Carolina Department of Natural Resources.

What happens if I purchase a new watercraft from a dealership? 

When you purchase a watercraft from a dealership, once the registration is issued you will receive a tax notice approximately 30 days from the date the watercraft was registered. This tax statement will be labeled as a 120 Day Tax Notice and will be due approximately 90 days after the tax notice is issued.

What if I purchased the watercraft from an individual?

Instate transactions: When purchasing a watercraft that has a South Carolina title, you will begin at your County Auditor’s office. The County Auditor’s office will need documentation of the sale (bill of sale or title), signed over to you, to generate a tax notice. Once the tax notice is paid at the County Treasurer's office, you will take your county paid tax receipt and sale documents to the SCDNR to complete the registration process.

Out of state transactions: When purchasing a watercraft from an individual that has an out of state title, this transaction will begin at SCDNR, where the South Carolina title and registration will be issued. Once the registration is issued you will receive a tax notice approximately 30 days from the date the watercraft was registered. This tax notice will be labeled 120 Day Tax Notice and will be due approximately 90 days after the tax notice is issued.

What if I am moving from out of state to Dorchester County? 

This transaction will begin at SCDNR where the South Carolina title and registration will be issued. Once the registration is issued you will receive a tax notice approximately 30 days from the date the watercraft was registered. This tax statement will be labeled 120 Day Tax Notice and will be due approximately 90 days after the tax notice is issued.