Boating - Tax Information on Boats & Watercraft
You are required by Article 17, Section 12-36-1710, code of Laws of South Carolina to pay Casual Excise or Use tax. You must have a notarized bill of sale with the purchase price shown to pay the Casual Excise or Use Tax.
Casual Excise Tax - The fee for casual excise tax is 5% of the purchase price and has a maximum of $500 if the boat and motor are purchased from same owner. When an outboard motor is purchased as one unit, the casual excise tax is 6% of the purchase price and has no maximum fee.
When you submit your paper work you can include the casual excise tax along with your fees to the following address:
SC Department of Natural Resources
PO Box 167
Columbia, SC 29202
Use Tax is required when a watercraft or outboard motor is purchased from an out of state (boat) dealer. If tax is paid to an out of state dealer, credit will be allowed.
|5 % tax paid to out of state boat dealer||Enclose copy of invoice / bill of sale to DNR showing tax has been paid.|
|Tax paid was less than (< ) 5%||you need to pay additional use tax to one of the Department of Revenue Service Centers|
|Tax paid was greater than (>) 5%||Enclose copy of invoice / bill of sale to DNR showing tax has been paid.|
If you did not pay taxes out-of-state, then you submit 5% tax with the registration fee. See example above.
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:
You must complete the exempt form on the back of the application to be exempt.
Military persons are not EXEMPT from Casual Excise or Use Tax on boats and Outboard Motors.
If you need to pay additional use tax, you must pay it at one of the S.C. Department of Revenue Tax Service Centers.