How are South Carolina sales of boats, boat motors, and boat trailers taxed — alone or as a package, by a dealer or a private seller?

Plain-English summary

South Carolina Revenue Ruling #22-7 works through how state sales/use tax, local sales/use tax, and the casual excise tax apply to boats, boat motors, and boat trailers — sold individually or as a package. It updates the prior ruling (RR #18-11) for a 2022 law change (Act No. 237, § 4) effective July 1, 2022, which added boat motors to the $500-maximum-tax list.

The two building-block rules:

1. Boats and boat motors are "maximum tax" items. The general sales/use tax rate is 6%, but maximum-tax items are taxed at 5%, capped at $500, and are exempt from local sales and use taxes (§§ 12-36-2110, 12-36-1110). This is true whether sold by a dealer (sales/use tax) or by a private individual (casual excise tax, paid by the buyer when SC issues a title — § 12-36-1710).
2. Boat trailers are NOT maximum-tax items and NOT casual-excise items. How a trailer is taxed turns on personal vs. business use and whether it's registered with the SCDMV.

A "permanently attached motor" — an inboard motor, or an outboard sold mounted to the boat, connected to permanent steering, and included in the boat's price — is taxed together with the boat. A motor sold separately is taxed on its own (still 5%/$500).

The scenarios (this is the heart of the ruling):

Package deals. If a boat and trailer are sold as a package — even billed as one non-itemized price — the boat and the trailer are calculated separately under their own rules above. (The boat is 5%/$500 whether the package is for personal or business use; the trailer follows the personal-vs-business-use rules.)

The Infrastructure Maintenance Fee (IMF). Under § 56-3-627, a boat trailer used for business must be registered with the SCDMV, which triggers a 5% IMF (max $500) remitted to SCDMV; § 12-36-2120(83) then exempts that sale from state and local sales/use tax. A personal-use boat trailer isn't registered with SCDMV, owes no IMF, and is therefore a normal 6% sales-tax purchase (from a retailer).

Two more wrinkles. Federally issued vessel titles (U.S. Coast Guard, U.S. Customs) are outside the casual excise tax (federal immunity). And for a nonresident buying a business-use boat trailer to register in another state, § 12-36-930 caps the SC sales tax at the lesser of the two states' taxes (and zero in some cases).

What this means for you

Buying or selling a boat with a trailer

Split the deal in your head: the boat (and any permanently attached motor) is 5%, max $500 — a great cap on an expensive purchase — and skips local tax. The trailer is the variable part: personal use means a normal 6% (plus local) from a dealer, or nothing from a private seller; business use means no sales tax but a 5% IMF (max $500) to the SCDMV. Even a single-price package is taxed piece-by-piece, so ask the dealer how they're allocating.

Boat and trailer dealers

Calculate the boat and trailer separately, even on one invoice. Charge 5%/$500, no local on boats and motors; 6% + local on personal-use trailers; and treat business-use trailers as IMF (SCDMV), exempt from your sales tax. Remember boat motors joined the max-tax/local-exempt club on July 1, 2022.

Accountants and tax professionals

The decision tree is: item type (boat/motor vs. trailer) → seller type (retailer vs. non-retailer) → for trailers, use (personal vs. business) and SCDMV registration/IMF. Keep the $500 max tax and local-tax exemption tied to maximum-tax items only; personal-use trailers are the one piece that carries the full 6% and local tax. Mind the § 12-36-930 nonresident-trailer cap and the federal-title casual-excise immunity.

Common questions

Q: How much tax on the boat itself?
A: 5% of the price (or FMV for a private sale), capped at $500, with no local sales/use tax — whether bought from a dealer (sales/use tax) or a private seller (casual excise tax).

Q: Is a boat motor taxed the same as the boat?
A: Yes, since July 1, 2022 — boat motors are maximum-tax items at 5%/$500, exempt from local tax. A motor permanently attached to the boat is taxed together with the boat.

Q: How is a boat trailer taxed?
A: A personal-use trailer is a normal 6% sales-tax item (plus local tax) from a dealer, and untaxed from a private seller. A business-use trailer is exempt from sales/use tax but owes a 5% Infrastructure Maintenance Fee (max $500) to the SCDMV.

Q: We bought the boat and trailer for one price — how is it taxed?
A: Separately. Even a single non-itemized price is split: the boat at 5%/$500, and the trailer under the personal- or business-use rules.

Q: Does a private (individual) sale of a boat trailer get taxed?
A: No. Sales/use tax applies only to retailer sales, and a trailer isn't a casual-excise-tax item — so a private-party personal-use trailer sale isn't taxed (a business-use trailer still owes the IMF at SCDMV registration).

Citations and references

Statutes:

• S.C. Code Ann. § 12-36-910 — imposes the sales tax (5% of gross proceeds; 6% general rate with the § 12-36-1110 add-on)
• S.C. Code Ann. § 12-36-1310 — the use tax
• S.C. Code Ann. § 12-36-1110 — the additional 1% (since June 2007) that does not apply to maximum-tax items
• S.C. Code Ann. § 12-36-2110 — the $500 maximum tax; lists boats and (per 2022) watercraft motors
• S.C. Code Ann. § 12-36-1710 — the casual excise tax on private-party boat/motor sales
• S.C. Code Ann. § 56-3-627 — the Infrastructure Maintenance Fee (business-use boat trailers registered with SCDMV)
• S.C. Code Ann. § 12-36-2120(83) — IMF sales are exempt from state and local sales/use tax
• S.C. Code Ann. § 12-36-930 — nonresident business-use boat-trailer tax cap
• Act No. 237, Section 4, of 2022 — added watercraft motors to the maximum tax

Related Department rulings (described in prose, not linked): RR #22-7 supersedes RR #18-11; the companion ruling RR #22-6 covers the casual excise tax on boats, motors, and airplanes; RR #09-9 addresses local use tax credits for delivery in another jurisdiction.

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR22-7.pdf

Original ruling text

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE

300A Outlet Pointe Blvd., Columbia, South Carolina 29210
P.O. Box 125, Columbia, South Carolina 29214-0575

SC REVENUE RULING #22-7
SUBJECT:

Sales of Boats, Boat Motors, and Boat Trailers
(Sales Tax, Use Tax, and Casual Excise Tax)

EFFECTIVE DATE:

July 1, 2022

SUPERSEDES:

SC Revenue Ruling #18-11 and all previous advisory opinions and any
oral directives in conflict herewith.

REFERENCES:

S.C. Code Ann. Section 12-36-910 (2014)
S.C. Code Ann. Section 12-36-1310 (2014)
S.C. Code Ann. Section 12-36-1110 (2014)
S.C. Code Ann. Section 12-36-1710 (2014; Supp. 2022)
S.C. Code Ann. Section 12-36-2110 (2014; Supp. 2022)
S.C. Code Ann. Section 56-3-627 (2018; Supp. 2022)
Act No. 237, Section 4, of 2022

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the public
and to Department personnel. It is an advisory opinion issued to apply
principles of tax law to a set of facts or general category of taxpayers. It
is the Department’s position until superseded or modified by a change in
statute, regulation, court decision, or another Departmental advisory
opinion.

PURPOSE OF UPDATE
The purpose of this advisory opinion is to update guidance concerning the application of state
and local sales and use taxes, and the casual excise tax, to sales of boats, boat motors, and boat
trailers when sold individually or as a package to reflect the following law change enacted by the
General Assembly in Act No. 237, Section 4, of 2022:
Maximum Tax – Watercraft Motors: Code Section 12-36-2110(A), concerning the sales of
items subject to a maximum sales and use tax and maximum casual excise tax, has been
amended to add watercraft motors (i.e., boat motors). The sales of watercraft motors, effective
1

July 1, 2022, are subject to the sales and use tax or the casual excise tax at a rate of 5%, but no
more than $500. With this amendment, sales of watercraft motors are exempt from all local
sales and use taxes administered and collected by the Department effective July 1, 2022.
LAW AND DISCUSSION
General Sales and Use Tax:
Code Section 12-36-910(A) imposes a sales tax and reads:
A sales tax, equal to five percent of the gross proceeds of sales, is imposed upon
every person engaged or continuing within this State in the business of selling
tangible personal property at retail.
Code Section 12-36-1310(A) imposes a use tax and reads:
A use tax is imposed on the storage, use, or other consumption in this State of
tangible personal property purchased at retail for storage, use, or other consumption
in this State, at the rate of five percent of the sales price of the property, regardless of
whether the retailer is or is not engaged in business in this State.
Code Section 12-36-1110 increased the sales and use tax rate and the casual excise tax rate by
1% beginning June 1, 2007; however, this additional 1% does not apply to items subject to a
maximum sales and use or casual excise tax pursuant to Code Section 12-36-2110.
Based on the above, the sales and use tax is imposed at a rate of 6% on all retail sales of tangible
personal property, except those items subject to a maximum tax.
Maximum Sales and Use Tax:
Code Section 12-36-2110(A)(1) imposes a maximum tax on certain items, including boats and
boat motors, and reads in part:
The maximum tax imposed by this chapter is [five] hundred dollars for each sale
made after June 30, 1984, or lease executed, after August 31, 1985, of each:
(d) boat and watercraft motor;

(e) trailer or semitrailer, pulled by a truck tractor, as defined in Section 56-3-20, and
horse trailers, but not including house trailers or campers as defined in Section
56-3-710 or a fire safety education trailer[.] 1

For purposes of this advisory opinion, boat trailers do not include trailers which must be pulled by truck tractors or
boat trailers which are used by manufacturers to transport boats to dealerships.

1

2

While the general sales tax rate is 6%, a 5% rate is imposed on retail sales of items subject to a
maximum tax. As such, sales of boats and boat motors are subject to the sales and use tax at a
rate of 5%, but no more than $500.
Casual Excise Tax:
Code Section 12-36-1710 imposes a casual excise tax on the issuance of a certificate of title or
other proof of ownership on sales of boats and boat motors by persons not engaged in the
business of selling tangible personal property at retail, and reads, in part:
(A) In addition to all other fees prescribed by law there is imposed an excise tax for
the issuance of every certificate of title, or other proof of ownership, for every
boat, motor, or airplane, required to be registered, titled, or licensed. The tax is
five percent of the fair market value of the airplane, boat, and motor.
(B) Excluded from the tax are:
(1) boats, motors, or airplanes:
(a) transferred to members of the immediate family;
(b) transferred to a legal heir, legatee, or distributee;
(c) transferred from an individual to a partnership upon formation of a
partnership, or from a stockholder to a corporation upon formation of a
corporation;
(d) transferred to a licensed motor vehicle or motorcycle dealer for the purpose
of resale;
(e) transferred to a financial institution for the purpose of resale;
(f) transferred as a result of repossession to any other secured party, for the
purpose of resale;
(2) the fair market value of a boat, motor, or airplane, transferred to the seller or
secured party in partial payment;
(3) gross proceeds of transfers of airplanes specifically exempted by Section
12-36-2120 from the sales or use tax;
(4) boats, motors, or airplanes, where a sales or use tax has been paid on the
transaction necessitating the transfer.
(C) “Fair market value” means the total purchase price less any trade-in, or the valuation
shown in a national publication of used values adopted by the department, less any
trade-in.

3

(D) “Total purchase price” means the price of a boat, motor, or airplane agreed upon by
the buyer and seller with an allowance for a trade-in, if applicable.
(E) “Immediate family” means spouse, parents, children, sisters, brothers, grandparents,
and grandchildren.
(F) The department shall require every applicant for a certificate of title to supply
information it considers necessary as to the time of purchase, the purchase price, and
other information relative to the determination of fair market value. If the excise tax is
based upon total purchase price as defined in this section, the department shall require
a submission of a bill of sale and the signature of the owner subject to the perjury
statutes of this State.
Code Section 12-36-1720 provides that the casual excise tax applies only to “the last sale before
the application for title.”
Accordingly, the casual excise tax applies to purchases of boats and boat motors from a nonretailer (typically an individual) for the issuance of a title or other proof of ownership. The
casual excise tax rate is 5% not to exceed $500 for items that qualify for the maximum tax, such
as a boat or a boat motor. Sales of items subject to the maximum tax are exempt from local sales
and use taxes administered and collected by the Department.
Casual Excise Tax - Title or Other Proof of Ownership Issued by the Federal Government
Code Section 50-23-20 requires all watercraft held or principally used in South Carolina to be
titled by the SC Department of Natural Resources (“DNR”). However, Code Section 50-23-30
provides an exemption from this titling requirement for watercraft documented with the United
States Coast Guard. In addition, South Carolina Attorney General Opinion #83-33 (July 8, 1983)
addressed a question of whether South Carolina can impose the casual excise tax on a certificate
of title or other proof of ownership issued by the U.S. Commissioner of Customs for a vessel. In
finding that the casual excise tax may not be imposed, the opinion cited the exemption in a prior
version of Code Section 50-23-30 2 and further said:
In United States v. Livingston, 179 F. Supp. 9, affirmed 364 U.S. 855, 80 S. Ct.
1611, 4 L. Ed. 2d 1719, it was stated that:
“The doctrine of mutual immunity of state and of nation from
taxation by the other, enunciated by Chief Justice Marshall in
M'Culloch v. State of Maryland, 4 Wheat. 316, 4 L. Ed. 579, has
not lost vitality with age. If, at times, it has seemed that 'the line
between the taxable and the immune has been drawn by an
unsteady hand,' the basic principle that the United States, its
property, its essential functions and activities are not subjects of
taxation by the states has not been questioned in modern times.”
Since the issuance of South Carolina Attorney General Opinion #83-33, the exemption cited in the prior version of
Code Section 50-23-30 has been modified but is substantially the same.
2

4

Under such, the State cannot impose a tax upon the issuance by the United States
of the certificate of documentation and registry. … The casual excise tax is not
applicable to the documentation and registry issued by the United States
Customs office.
Based on the above, the casual excise tax does not apply to the issuance of a title, other proof of
ownership, or other documentation for a boat by a federal government agency, such as the U.S.
Coast Guard or U.S. Customs and Border Protection. 3
Local Sales and Use Taxes:
Local governments have limited authority to levy local taxes and fees for various purposes.
Most counties impose one or more local sales and use taxes (e.g., Local Option under Code
Section 4-10-10, et seq.; Transportation under Code Section 4-37-30, et seq.; Education Capital
Improvements under Code Section 4-10-410, et seq.; etc.).
Sales of items subject to a maximum tax are exempt from local sales and use taxes administered
and collected by the Department. However, such local taxes may apply to sales of items that are
not subject to a maximum tax.
In addition, while Code Section 12-36-1710 imposes a casual excise tax on boats and boat
motors, there is no law that authorizes counties, municipalities, or other local governments to
impose a local casual excise tax.
Infrastructure Maintenance Fee:
Code Section 56-3-627 imposes an infrastructure maintenance fee at a rate of 5% of the gross
proceeds of the sale, not to exceed $500 for a sale by a licensed SC Department of Motor
Vehicles (“SCDMV”) dealer, or 5% of the vehicle’s fair market value, not to exceed $500, for a
sale by a person who is not a SCDMV licensed dealer. Code Section 12-36-2120(83) provides
that sales subject to the infrastructure maintenance fee are exempt from state and local sales and
use taxes. The infrastructure maintenance fee is remitted to the SCDMV. 4
Pursuant to Chapter 3 of Title 56, the owner of each boat trailer used for business purposes must
register the boat trailer with the SCDMV and pay an infrastructure maintenance fee upon first
registering the boat trailer.
The U.S. Coast Guard and U.S. Customs and Border Protection are federal agencies within the U.S. Department of
Homeland Security. U.S. Coast Guard Vessel Documentation is a national form of boat registration. Documented
vessels do not have titles; they maintain Certificates of Documentation that expire in 1-5 years from issuance. See
https://unitedstatesvessel.us/certificate-of-documentation/.
4
Code Section 12-36-930 provides that the sales tax due on a sale to a nonresident of a boat trailer to be used for
business purposes for use in the nonresident purchaser’s state of residence, is the lesser of (1) the sales tax which
would be imposed on the sale in the purchaser’s state of residence or (2) the tax that would be imposed in South
Carolina. No sales tax is due in South Carolina if (1) a nonresident purchaser cannot receive a credit in his resident
state for sales tax paid to South Carolina or (2) the nonresident’s state does not impose a sales tax on the sale of a
boat trailer for business purposes.
3

5

Boat trailers used for personal purposes are not required to be registered with the SCDMV and,
therefore, are not subject to the infrastructure maintenance fee. Therefore, retail sales of boat
trailers used for personal purposes are subject to sales and use taxes.
SUMMARY
The application of the state sales and use tax, local sales and use taxes, and the casual excise tax
to sales of boats, boat motors, and boat trailers is discussed below.
Boat Sold Alone or Boat Sold with a Permanently Attached Motor
Sale by a Retailer. The sale of a boat alone, or the sale of a boat with a permanently attached
motor, 5 by a retailer is subject to the sales and use tax. Since a boat is a maximum tax item, the
sales and use tax is calculated at a rate of 5% of the gross proceeds of sales of the boat, or sales
price, of the boat (and permanently attached motor), but no more than $500. The sale of a boat
alone, or the sale of a boat with a permanently attached motor, is not subject to local sales and
use taxes.
Sale by a Non-Retailer. The sale of a boat alone, or the sale of a boat with a permanently
attached motor, by a non-retailer (e.g., an individual) is subject to the casual excise tax if a
certificate of title or other proof of ownership is issued by South Carolina. The casual excise tax
is due upon issuance of a certificate of title or other proof of ownership to the purchaser. Since a
boat is a maximum tax item, the casual excise tax is calculated at a rate of 5% of the fair market
value of the boat (and permanently attached motor), but no more than $500. The sale of a boat
alone, or the sale of a boat with a permanently attached motor, is not subject to local sales and
use taxes since local sales and use taxes do not apply to casual excise tax transactions.
Boat Motor Sold Alone
Sale by a Retailer. The sale of a boat motor alone is subject to the sales and use tax. Since boat
motors are maximum tax items, the state sales and use tax is calculated at a rate of 5% of the
gross proceeds of sales, or sales price, of the boat motor, but no more than $500. The sale of a
boat motor alone is not subject to local sales and use taxes.
Sale by a Non-Retailer. The sale of a boat motor by a non-retailer (e.g., an individual) is subject
to the casual excise tax if a certificate of title or other proof of ownership is issued by South
Carolina. The casual excise tax is due upon issuance of a certificate of title or other proof of
ownership to the purchaser. Since a boat motor is a maximum tax item, the casual excise tax is
calculated at a rate of 5% of the fair market value of the boat motor, but no more than $500. The
sale of the boat motor is not subject to local sales and use taxes since local sales and use taxes do
not apply to casual excise tax transactions.

A boat motor is considered permanently attached to a boat if it is (1) an inboard motor or (2) an outboard motor
sold mounted to the boat, connected to a permanent steering mechanism, and included in the price of the boat.

5

6

Boat Trailer Sold Alone for Personal Use
Sale by a Retailer. The sale of a boat trailer for personal use by a retailer is subject to the sales
and use tax. Since a boat trailer is not a maximum tax item, the state sales and use tax is
calculated at a rate of 6% of the gross proceeds of sales, or sales price, of the boat trailer. Local
sales and use taxes apply if the sale or use takes place in a county imposing a local sales and use
tax. 6
Sale by a Non-Retailer. Since state and local sales and use taxes only apply to sales made by
retailers, a boat trailer purchased for personal use from a non-retailer is not subject to sales and
use tax. The sale is not subject to the casual excise tax since a boat trailer is not a casual excise
tax item.
Boat Trailer Sold Alone for Business Use
Sale by a Retailer. The sale of a boat trailer for business use by a retailer for registration in
South Carolina is exempt from the sales and use tax and subject to the infrastructure maintenance
fee at a rate of 5%, but no more than $500.
Sale by a Non-Retailer. Since state and local sales and use taxes only apply to sales made by
retailers, a boat trailer purchased for business use from a non-retailer is not subject to sales and
use tax. The sale is not subject to the casual excise tax since a boat trailer is not a casual excise
tax item. However, the sale of a boat trailer for business use by a non-retailer for registration in
South Carolina is subject to the infrastructure maintenance fee at a rate of 5%, but no more than
$500.
Boat and Boat Trailer Sold as a Package
The sale of a boat and boat trailer as a package requires a separate calculation of the tax for the
boat and the boat trailer. This is true even if the sales price of the boat and boat trailer is billed in
one contract for one single, non-itemized price. The computations for the tax imposed on a boat
(with or without a permanently attached motor) and a boat trailer purchased as a package are
discussed below.
Sale by a Retailer. The sale of the boat (including a boat with a permanently attached motor) by
a retailer is subject to the sales and use tax. Since a boat is a maximum tax item, the sales and use
tax is calculated at a rate of 5% of the gross proceeds of sales, or sales price, of the boat (and
permanently attached motor), but no more than $500. The sale of the boat is not subject to local
sales and use taxes. This calculation is the same regardless of whether the boat (including a boat
with a permanently attached motor) is sold for personal use or business use.

The purchaser is not liable for a jurisdiction’s local use tax if he takes delivery in another jurisdiction and pays the
other jurisdiction’s local sales tax, provided the local sales tax he paid is equal to or greater than the local use tax
that would otherwise be due. If the local sales tax paid is less than the local use tax, then the purchaser owes the
difference. See SC Revenue Ruling #09-9.
6

7

The calculation of the tax on the sale of the boat trailer depends on whether it is sold for personal
use or business use.
Personal Use: The sale of a boat trailer for personal use by a retailer is subject to the sales
and use tax. Since a boat trailer is not a maximum tax item, the state sales and use tax rate
is 6% of the gross proceeds of sales, or sales price, of the boat trailer. Local sales and use
taxes apply if the sale or use takes place in a county imposing a local sales and use tax. 7
Note: If the price of the boat trailer is not separately stated from the price of the boat, the
sale of the boat trailer is subject to the state sales and use tax at 6% plus any applicable
local sales and use tax of the fair market value of the boat trailer. If the price of the boat
trailer is separately stated from the price of the boat, the price breakdown must be
reasonable and supported by the records of the taxpayer, otherwise the trailer will be taxed
at 6% plus any applicable local sales and use tax on its fair market value.
Business Use: The sale of a boat trailer for business use by a retailer for registration in
South Carolina is exempt from the sales and use tax and subject to the infrastructure
maintenance fee at a rate of 5%, but no more than $500.
Note: In calculating the sales and use tax on the sale of the boat, the price breakdown
between the boat and boat trailer must be reasonable and supported by the records of the
taxpayer. Otherwise, the sales and use tax on the sale of the boat will be calculated at the
fair market value of the boat.
Sale by a Non-Retailer. The sale of a boat (including a boat with a permanently attached motor),
by a non-retailer (e.g., an individual) is subject to the casual excise tax if a certificate of title or
other proof of ownership is issued by South Carolina. The casual excise tax is due upon the
issuance of a certificate of title or other proof of ownership to the purchaser. Since a boat is a
maximum tax item, the casual excise tax is calculated at a rate of 5% of the fair market value of
the boat (and permanently attached motor), but no more than $500. The sale of the boat is not
subject to local sales and use taxes since local sales and use taxes do not apply to casual excise
tax transactions.
The calculation of the tax on the sale of the boat trailer depends on whether it is sold for personal
use or business use.
Personal Use: The sale of a boat trailer for personal use by a non-retailer (e.g., an
individual) is not subject to the casual excise tax. Local sales and use taxes do not apply.
Business Use: The sale of a boat trailer for business use by a non-retailer for registration in
South Carolina is not subject to the casual excise tax, but is subject to the infrastructure
maintenance fee at a rate of 5%, but no more than $500.
Note: In calculating the casual excise tax on the sale of the boat, the price breakdown between
the boat and boat trailer must be reasonable and supported by the records of the taxpayer.
Otherwise, the casual excise tax on the boat will be calculated at the fair market value of the
boat.
7

See footnote #4.

8

The examples below illustrate the tax computations for such package sales by retailers and nonretailers.
Example 1– Package Sale by a Retailer: A retailer sells a boat and a boat trailer for personal use
as a package for $47,000. The prices of the boat and boat trailer are separately stated at $40,000
and $7,000, respectively. The price breakdown is reasonable and supported by the retailer’s
records. The County where the sale takes place has a 1% local sales and use tax. The tax is
computed as follows:
Item
Boat
Boat Trailer
Totals:

Sales Price
State Sales/Use Tax
$40,000
$500 Maximum Sales/Use Tax
$ 7,000
$420 (6% x $7,000)
$47,000
$920

Local Sales/Use Tax
$ 0 (Exempt)
$ 70 (1% x $7,000)
$ 70

Example 2 – Package Sale by a Non-Retailer: A non-retailer sells a boat and a boat trailer for
personal use as a package for $47,000. The prices of the boat and boat trailer are separately
stated at $40,000 and $7,000, respectively. When the purchaser remits the casual excise tax to
either the Department of Revenue or Department of Natural Resources, the price breakdown is
reasonable. The County where the sale takes place has a 1% local sales and use tax. The tax is
computed as follows:
Item
Boat
Boat Trailer
Totals:

FMV
$40,000
$ 7,000
$47,000

Casual Excise Tax
$500 Maximum Casual Excise Tax
$ 0 (Not Subject to Casual Excise Tax)
$500

State/Local Sales/Use Tax
$0 (Not applicable)
$0 (Not applicable)
$0

SOUTH CAROLINA DEPARTMENT OF REVENUE

s/W. Hartley Powell
W. Hartley Powell, Director
October 20
, 2022
Columbia, South Carolina

9

EXHIBIT CHART
The chart and notes on the following pages provide a summary of the state sales and use tax, local sales and use
tax, and casual excise tax implications of sales of boats, boat motors, and boat trailers, sold individually or as a
package, by retailers and non-retailers.

TAXATION OF BOATS, BOAT MOTORS, AND BOAT TRAILERS
ITEM(S) SOLD

SALE BY RETAILER

SALE BY NON-RETAILER

State Sales/Use Tax

Local Sales/Use Tax

Casual Excise Tax*

Boat Sold Alone
(Maximum Tax Item)

Lesser of
5% or $500

N/A to Maximum
Tax Items

Lesser of
5% or $500

Boat Sold With Permanently
Attached Motor
(Maximum Tax Item)

Lesser of
5% or $500

N/A to Maximum
Tax Items

Lesser of
5% or $500

Boat Motor Sold Alone
(Maximum Tax Item)

Lesser of
5% or $500

N/A to Maximum
Tax Items

Lesser of
5% or $500

Boat Trailer Sold Alone - For
Personal Use
(Not a Maximum Tax Item)

6%

Applies in counties
where imposed

N/A - Not a Casual
Excise Tax Item

Boat Trailer Sold Alone - For
Business Use in SC
(Not a Maximum Tax Item)

Exempt under
§12-36-2120(83)
(An Infrastructure
Maintenance Fee is paid
to the SCDMV)

Exempt under
§12-36-2120(83)

N/A - Not a Casual
Excise Tax Item
(An Infrastructure Maintenance
Fee is paid to the SCDMV)

Lesser of
5% or $500
---------------------6%

N/A to Maximum
Tax Items
---------------------Applies in counties
where imposed

Lesser of
5% or $500
---------------------N/A - Not a Casual Excise Tax
Item

Lesser of
5% or $500

N/A to Maximum
Tax Items

Lesser of
5% or $500

---------------------Exempt under
§12-36-2120(83)
(An Infrastructure
Maintenance Fee is paid
to the SCDMV)

---------------------Exempt under
§12-36-2120(83)

---------------------N/A - Not a Casual
Excise Tax Item
(An Infrastructure Maintenance
Fee is paid to the SCDMV)

"Package Sale"
(Boat Trailer Sold For Personal Use)
Boat - With or Without a Permanently
Attached Motor
(Maximum Tax Item)
---------------------Boat Trailer
(Not a Maximum Tax Item)
"Package Sale"
(Boat Trailer Sold For
Business Use in SC)
Boat - With or Without a Permanently
Attached Motor
(Maximum Tax Item)
---------------------Boat Trailer
(Not a Maximum Tax Item)

• Local sales and use taxes do not apply to casual excise tax transactions.
  (See Notes on Following Page)

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TAXATION OF BOATS, BOAT MOTORS, AND BOAT TRAILERS – NOTES
Sales by Retailers
State Sales and Use Tax: South Carolina imposes a sales and use tax upon sales by, and purchases from, retailers.
The tax rate is the lesser of 5% or $500 for maximum tax items and 6% for other items.
Local Sales and Use Tax: Most counties impose one or more local sales and use taxes. Whether a local sales and
use tax applies depends, in part, on whether delivery of an item (i.e., the sale) takes place in a county which
imposes a local sales and use tax. The purchaser is not liable for a jurisdiction's local use tax if he takes delivery
in another jurisdiction and pays the other jurisdiction's local sales tax, provided the local sales tax he paid is equal
to or greater than the local use tax that would otherwise be due. If the local sales tax he paid is less than the local
use tax, then the purchaser owes the difference. Also, the purchaser is relieved of the liability for the local use tax
if he has a receipt from a retailer showing the retailer has collected the local use tax.

Sales by Non-Retailers
Casual Excise Tax: A casual excise tax is imposed upon sales of boats (with or without a permanently attached
motor) and boat motors by non-retailers. The tax is imposed for the issuance of every certificate of title, or other
proof of ownership, for every boat or boat motor required to be titled. Since boats and boat motors are maximum
tax items, the casual excise tax rate is the lesser of 5% or $500 for boats with or without a permanently attached
motor and for boat motors sold alone. Local sales and use taxes do not apply to casual excise tax transactions.

Maximum Tax Items
A maximum sales tax, use tax, or casual excise tax is imposed upon sales of boats with or without a permanently
attached motor and on sales of boat motor sold alone. The maximum tax rate is the lesser of 5% or $500. A boat
motor is considered permanently attached to a boat if it is (1) an inboard motor or (2) an outboard motor sold
mounted to the boat, connected to a permanent steering mechanism, and included in the price of the boat. Sales or
purchases of boat trailers are not subject to a maximum sales, use, or casual excise tax and are subject to a 6% tax
rate (plus any applicable local sales and use tax for sales by retailers). Maximum tax items are exempt from all
local sales and use taxes administered and collected by the Department.

Infrastructure Maintenance Fee
The owner of each boat trailer purchased for business use in South Carolina must pay an infrastructure
maintenance fee upon first registering the boat trailer with the SC Department of Motor Vehicles. The fee is
imposed at a rate of 5%, but no more than $500. Boat trailers purchased for business use in South Carolina are
exempt from state and local sales and use tax. Boat trailers purchased for personal use, however, are not subject
to the infrastructure maintenance fee and are subject to state and local sales and use tax when sold by a retailer.

Nonresident Purchases – Special Rules
The entire chart above applies to both residents and nonresidents. However, the chart does not address boat
trailers sold by retailers for business use outside of South Carolina. Also, Code Section 12-36-2120(36) provides
an exemption for sales of certain items which are to be delivered by the retailer out-of-state. Both of these issues
are addressed below.
Boat Trailers Sold by Retailers for Business Use Outside of South Carolina: Boat trailers sold by retailers for
business use outside of South Carolina are subject to the lesser of (1) the sales tax that would be imposed on the
sale in the purchaser’s state of residence or (2) the tax that would be imposed in South Carolina (6% state plus
local sales tax). No sales tax is due in South Carolina if (1) a nonresident purchaser cannot receive a credit in his
resident state for sales tax paid to South Carolina or (2) a nonresident's state does not impose a sales tax on the
sale of a boat trailer for business use. The infrastructure maintenance fee does not apply to sales of boat trailers in
South Carolina for business use outside of South Carolina.
Exemption for Delivery Out-of-State: A sale is exempt from state and local sales and use tax if the seller, by
contract of sale, is obligated either (1) to deliver the item to the buyer (or an agent or donee of the buyer) at a
point outside of South Carolina, or (2) to deliver the item to a common carrier or the U.S. mail for transportation
to the buyer (or an agent or donee of the buyer) at a point outside of South Carolina. The casual excise tax is not
applicable if the buyer does not receive a certificate of title or other proof of ownership in South Carolina.

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