The bill H. 3858 proposes significant amendments to the South Carolina Code of Laws regarding the titling and taxation of watercraft and outboard motors. It seeks to remove the requirement for outboard motors to be titled while introducing a property tax exemption for fifty percent of the fair market value of watercraft. Additionally, the bill allows county auditors to consolidate tax notices for boats and boat motors and includes various conforming changes related to tax notices and watercraft certificates. The legislation also outlines the responsibilities of marine dealers, including annual permit applications and documentation maintenance, while establishing penalties for misuse of demonstration numbers. Moreover, the bill amends existing laws concerning the issuance and management of certificates of title, requiring detailed information about ownership and lienholders. It facilitates electronic transactions for title information, mandates businesses and lenders to use this system, and clarifies ownership transfer procedures, particularly in cases of inheritance or repossession. The legislation emphasizes accurate record-keeping of liens and encumbrances and includes provisions for facility inspections to prevent theft. Other key provisions include penalties for fraudulent title activities, the requirement for county auditors to mail renewal notices, and the ability to operate a newly acquired outboard motor for sixty days while awaiting title application. The act is set to take effect on January 1, 2026, applying to property tax years beginning after that date.

Statutes affected:
01/30/2025: 50-23-345, 50-23-375, 12-37-3210, 12-37-220
04/30/2025: 50-23-345, 50-23-375, 12-37-3210, 12-37-220
05/06/2025: 50-23-345, 50-23-375, 12-37-3210, 12-37-220
05/07/2025: 50-23-345, 50-23-375, 12-37-3210, 12-37-220
Latest Version: 50-23-345, 50-23-375, 12-37-3210, 12-37-220