Which outboard motors were subject to South Carolina's historical casual excise tax under Revenue Ruling 92-2?

Plain-English summary

South Carolina Revenue Ruling 92-2 tied the historical casual excise tax to mandatory titling. An outboard motor of five horsepower or more had to receive a separate certificate of title and was therefore subject to the tax.

A motor below five horsepower did not have to be titled, registered, or licensed, so the tax did not apply. Voluntarily obtaining a title for a smaller motor did not change that result because the title was not legally required.

Common questions

Q: Did the tax apply at exactly five horsepower? Yes.

Q: What about a four-horsepower motor? It was not subject to the tax under the ruling.

Q: Did an optional title make a small motor taxable? No.

Citations and references

• S.C. Code Ann. §§ 50-23-10(b) and 50-23-20 (1991 Supp.) — historical definition and titling requirements
• S.C. Code Ann. § 12-36-1710 (1991 Supp.) — historical casual excise tax

Subject

Outboard Motors

Source

• Landing page: https://dor.sc.gov/advisory-opinion-search
• Original PDF: https://dor.sc.gov/sites/dor/files/policies/RR92-2.pdf

Original ruling text

SC REVENUE RULING #92-2

SUBJECT:

Outboard Motors
(Casual Excise Tax)

TAX ANALYST:

Deana West

SUPERSEDES:

All previous documents and any oral directives in conflict herewith.

REFERENCE:

S.C. Code Ann. Section 50-23-10 (Supp. 1991)
S.C. Code Ann. Section 50-23-20 (Supp. 1991)
S.C. Code Ann. Section 12-36-1710 (Supp. 1991)

AUTHORITY:

S.C. Code Ann. Section 12-4-320 (Supp. 1991)
SC Revenue Procedure #87-3

SCOPE:

A Revenue Ruling is the Commission's official interpretation of how tax
law is to be applied to a specific set of facts. A Revenue Ruling is public
information and remains a permanent document until superseded by a
Regulation or is rescinded by a subsequent Revenue Ruling.

Question:
Are outboard motors subject to the casual excise tax under Code Section 12-36-1710?
Discussion:
In discussing the issue at hand, we must first determine the meaning of the term "outboard motor"
and the titling requirements.
Code Section 50-23-10(b) defines the term "outboard motor" as follows:
any completely self-contained propulsion system, excluding the fuel supply, which
is used to propel a watercraft and which is detachable from such watercraft as a
unit.
Code Section 50-23-20 provides the titling requirements of outboard motors and provides:
Every owner of a watercraft or outboard motor, or both, principally used in this State
shall make application to the Division [Division of Boating of the South Carolina

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Wildlife and Marine Resources Department] for certificate of title for the watercraft and a
separate certificate of title for the outboard motor.
With respect to the titling of outboard motors, Code Section 50-23-10(b) provides that "[n]o outboard
motor of less than five horsepower or its equivalent shall be required to be titled under the provisions of
this chapter". Also, there are no registration or licensing requirements, in addition to the titling
requirement, for outboard motors.
Therefore, outboard motors of five horsepower and more are required to have a certificate of title.
Outboard motors of less than five horsepower, however, are not required to be titled.
Code Section 12-36-1710(A) provides for the imposition of the casual excise tax and reads, in part:
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...motor...required to be registered, titled, or licensed. The tax is five percent of the
fair market value of the... motor (emphasis added).
Furthermore, Code Section 12-36-1710(G) provides that "the Department of Wildlife and Marine
Resources may not...register any motor without first procuring from the commission information showing
that the excise tax has been collected".
Conclusion:
Outboard motors of five or more horsepower are subject to the casual excise tax pursuant to Code Section
12-36-1710.
Outboard motors of less than five horsepower are not required to be titled, registered or licensed and,
therefore, are not subject to the casual excise tax. Furthermore, outboard motors of less than five
horsepower that are titled at the option of the owner are not subject to the casual excise tax.

SOUTH CAROLINA TAX COMMISSION
s/A. Crawford Clarkson Jr.
A. Crawford Clarkson, Jr., Chairman
s/T. R. McConnell
T. R. McConnell, Commissioner
s/James M. Waddell Jr.
James M. Waddell, Jr., Commissioner

Columbia, South Carolina
, 1992
April 8

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