Tax collection changes to impact boat owners

As a result of legislation changing the way that counties collect property taxes on boats, in January of 2020, boat owners and buyers in South Carolina will begin to see changes in the way that boat registrations are issued by the S.C. Department of Natural Resources (SCDNR). The changes to the registration process will be phased in over the next three years as current registrations expire and will result in an annual registration process for boats that more closely mirrors the system used for automobiles. The most visible and immediate change for boat owners will be that boat registration renewals will be done on an annual basis, rather than every three years as they are currently. The fee for the new annual registration will be $10 (1/3 the cost of the old three-year fee of $30). Once fully implemented, the annual registration fee will be included on and paid via the boat owner’s county property tax bill, just like SCDMV vehicle registration fees are paid, which should be more convenient for boat owners than getting a separate bill. Another change is that under the new law, property taxes for boats will be collected by counties in advance (or “prospectively”) 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.