On January 16, 2025, South Carolina Senate Bill 61 was introduced, aiming to amend existing regulations concerning the registration and taxation of watercraft and outboard motors. The bill seeks to enhance accountability in the sale and transfer of these vehicles by imposing stricter penalties for false certifications regarding property tax payments.

The primary provisions of the bill include a requirement for sellers to certify that property taxes on the watercraft are current before transferring ownership. If a seller falsely certifies this information, they could face criminal penalties and be liable for three times the damages incurred by the buyer, in addition to covering reasonable attorney's fees. This measure is designed to protect buyers from potential financial losses associated with unpaid taxes on purchased watercraft.

Another significant aspect of the bill is the amendment to the temporary certificate of number process. Under the new regulations, a temporary certificate will only be issued if the ad valorem tax for the current year has been paid. This change aims to ensure that all watercraft on South Carolina waters are properly registered and taxed, thereby increasing state revenue and compliance.

The bill also mandates that county treasurers provide the Department of Natural Resources with an annual list of delinquent taxes on watercraft, which can be transmitted electronically. This provision is intended to streamline the tracking of unpaid taxes and enhance enforcement efforts.

Debate surrounding Senate Bill 61 has highlighted concerns from some stakeholders regarding the potential burden on sellers and the administrative implications for county officials. Critics argue that the additional requirements could complicate the sales process and deter potential buyers. However, proponents assert that the bill is a necessary step to safeguard consumers and ensure fair taxation practices.

The implications of this legislation extend beyond regulatory compliance; it could have significant economic impacts by potentially increasing tax revenues from watercraft registrations. Additionally, it may foster a more transparent marketplace, benefiting both buyers and sellers in the long run.

As the bill progresses through the legislative process, its future remains uncertain. Stakeholders are closely monitoring discussions, anticipating amendments that may address concerns raised during initial debates. The outcome of Senate Bill 61 could set a precedent for how watercraft transactions are conducted in South Carolina, emphasizing the importance of tax compliance in the boating industry.