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Panel debates bill to title boats and motors together, phase in property-tax cut; committee amends but final outcome recorded in transcript

Senate Subcommittee on Property Taxes · February 17, 2026

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Summary

Committee considered a bill to combine boat and motor titling, add motor registration, adjust titling/registration fees, and phase in a property-tax assessment reduction; amendment adopted, implementation questions raised, and a final committee vote is recorded in the transcript.

A Senate committee considered legislation to consolidate watercraft and outboard motor titling, change fees and registration, and phase in a significant property-tax assessment reduction for watercraft.

Mr. Gibson, staff, explained the measure would title the boat and motor together rather than separately, simplify duplicate titling requirements, and change fees so there is a single titling fee and a registration fee. He described a property-tax exemption phased in over three years that effectively reduces the assessment ratio from 10.5% to 6% and exempts 42.8571% of fair market value; the change is phased in equally over three years and first applies to property tax years beginning after 2026 with an effective date in the amendment of Jan. 1, 2027.

The committee adopted a subcommittee amendment that clarifies labeling requirements and retains a registration for outboard motors to preserve county tax administration. Senators asked technical questions about invalidating existing titles, whether counties have capacity to reissue thousands of certificates in the transition, and how multiple motors on one hull will be handled. Mr. Gibson said DNR (Department of Natural Resources) and county auditors participated in hearings and supported the implementation plan; a fiscal-impact note referenced a multi-million-dollar tax change and administrative costs described as minimal.

One senator cited a figure of $47,000,000 in savings spread across 46 counties; another participant referenced $40,000,000 in total wagers in an unrelated (equine) section of the hearing. Committee members adopted the technical amendment unanimously. The transcript later records a committee-level final disposition line that reads 'Fails 1012' (as spoken in the hearing record); the transcript does not include a roll-call with member names for that final tally.

What changed: titling will be consolidated; motor registration remains to support reassessment on replacement motors; the property-tax reduction is phased in across three years; the effective date in the amendment was moved to 01/01/2027.

What remains open: members asked staff to confirm implementation logistics with DNR and county auditors to ensure counties can process duplicate title invalidations and reissues within the timeframe described.