November 15, 2024

Titling a Newly Purchased Watercraft

In South Dakota buyers have 45 days from the date of purchase of a new or used watercraft to transfer the title into their name. A penalty of $1 per week up to 26 weeks will be assessed for late transfers. The penalty for a transfer after 26 weeks is $50.00. In addition, interest of 1% and penalties will apply to the 3% excise tax once the 45 days has lapsed with additional fees due on the 60th day after purchase.

*Most, but not all, types of watercrafts are titled and/or registered in South Dakota. Please see the below FAQ, or contact our office, to determine if your watercraft needs to be titled or registered.

Titling requires providing a valid South Dakota driver’s license or ID for each owner. If an owner has an out of state driver’s license or ID then a clear copy of their social security card, or other acceptable proof, will be required. Businesses must provide their FEIN #. If there are multiple owners both may need to sign the documents depending on how the names are connected.

Know your county- South Dakota residents must register their vehicles in the county they reside in.

Documents required to title all newly purchased vehicles in South Dakota

Ownership document (Title, Manufacturer’s Statement of Origin, or registration)

Purchase agreement or valid Bill of Sale

South Dakota Motor Vehicle and Boat Title Application (MV-1001)

Driver’s License or State Issued ID for all owners

Proof of Social Security Number is required with an out of state Driver’s License or ID. If you have an out of state driver’s license or ID, you will need to provide a clear copy of proof of your social security number. Acceptable proof is a copy of your social security card or a W2, 1098,1099, paystub or military orders with the full SSN on them.

Out of State Dealer Tax Assessment (Form 1004) if taxes were paid out of state at the time of purchase

Additional documents may be needed based on the individual transaction. Any cross outs, white outs, or other alterations to documents may void them or require an affidavit for correction. Please see the below FAQ for more information on the above documents.

Ownership Document

Proof of ownership is required to title a new or used watercraft in South Dakota. If the watercraft was purchased from a seller that resides in a state that titles that type of watercraft, the title is required. If it was purchased from a seller that resides in a state that only registers that type of watercraft, the original paper registration or the properly assigned Manufacturer’s Statement of Origin is required.

Title transfer and registration fees

Title transfer $10.00 (when applicable)

Lienholder notation fee $10.00 (when applicable)

Excise tax of 3% (see below FAQ)

Registration fees (see below)

County watercraft fee $3.00

Non-Resident fee $100.00 (when applicable)

Registration

In South Dakota registration fees for watercrafts are determined by the type and length of the watercraft.  All watercraft with a motor attached (gas or electric) must be registered. Watercraft over 12 feet in length, with or without a motor, must be registered.

A non-motorized watercraft over 12 feet in length- $15.00 annual

A motorized watercraft under 19 feet in length- $25 annual

A motorized watercraft over 19 feet in length- $45 annual

Processing through the mail

Fees are prorated from the date of purchase to your renewal month. If it is within 90 days from your renewal month your registration will be calculated through to the following year. The renewal month is determined by the first letter of the owner’s last name or first letter of the company name and must be renewed annually.

If processing through the mail all documents will need to be mailed to our office. Paperwork mailed in is receipted in and worked in the order it is received- not necessarily on the day it arrives from your chosen carrier. Expect up to two weeks plus processing time. If additional documents are needed and mailed in, they will follow the normal mail process.

It is the sender’s responsibility to follow up on processing to avoid interest and penalties. Title work starts accruing interest if not completed 45 days from your purchase date. We do not go by when the paperwork is mailed/received in our office. You are responsible for having all documents in and paid for. You are strongly encouraged to mail in advance to avoid penalties.

Once your paperwork has been reviewed you will be contacted for payment or for any missing documents. Please include valid contact information with your paperwork. We will reach out via email if an email address is given- watch your junk or spam folder so you don’t miss any correspondence regarding your transaction.

Transactions done through the mail will be charged a postage and handling fee to mail the plates and registration ($7.50 per set of plates and registration, $1.50 per registration only).

Please send documents to:

Fall River County Treasurer’s Office
906 N. River St.
Hot Springs, SD 57747

Payment options

Our system is not set up to take prepaid debit cards, gift cards or loaded employee payroll cards.

Checks, Money Orders, and Cashier’s Checks should be made payable to Fall River County Treasurer.

Cash

Visa, MasterCard, American Express, and Discover cards are accepted and subject to a 2.5% service charge.

Debit cards in person with use of a pin # are subject to a $2.50 service charge. Over the phone they are subject to a 2.5% service charge.

Additional Information

To obtain a quote prior to sending in your paperwork please give us a call at 605-745-5145. All quotes are considered estimates and are based off the information provided to us.

If you have additional questions not answered here, please call our office at 605-745-5145 from 8:00am – 5:00 pm MDT Monday through Friday or send us a message to our email [email protected].

 

Additional Information

South Dakota Boating Handbooks are available at the Treasurer’s Office. They include applicable laws, how to display required boat numbers and registration decals, and other important information for operating a watercraft on South Dakota waters. For more information outside of titling and registering a watercraft please contact the South Dakota Game, Fish & Parks department.

To obtain a quote prior to sending in your paperwork please give us a call at 605-745-5145. All quotes are considered estimates and are based off the information provided to us.

If you have additional questions not answered here, please call our office at 605-745-5145 from 8:00am – 5:00 pm MDT Monday through Friday or send us a message to our email [email protected].

 

Frequently Asked Questions

 

Is a title required in South Dakota?

Yes. A watercraft title is a legal document that is required to register a qualifying watercraft in South Dakota. While the primary purpose of a title is to establish who owns the watercraft, titles also provide watercraft information such as make, model year, length and the hull identification number (HIN). Both the buyer and seller must follow specific procedures to ensure the title is correctly transferred from one owner to the next.

If the watercraft is brand new, instead of a certificate of title, you may have a Manufacturer’s Certificate of Origin. If it was purchased from a seller that resides in a state that only registers that type of watercraft, the original paper registration or the properly assigned Manufacturer’s Statement of Origin is required.   Once the title transfer is completed you will receive a South Dakota title. If there is a lien holder the title will be held electronically until the lien is released.

 

Does my watercraft need to be titled and/or registered in South Dakota?

South Dakota requires boats over 12 feet long, or with a motor (gas or electric) to be titled and registered. A boat 12 feet and under, without a motor, is not titled or registered.

Canoes, kayaks, inflatables, sailboards and seaplanes that are under 12 feet long, and do not have a motor (gas or electric) are not titled or registered. If it is over 12 feet long, or if at any point a motor is attached, it must be registered.

No person may operate or give permission for operation of a nonmotorized boat over twelve feet in length or a motorboat on the waters of this state unless a registration validation decal is displayed on each side of the bow of the boat.

 

Does my watercraft require a boat number to be displayed?

No person may operate or give permission for operation of a nonmotorized boat over eighteen feet in length or of a motorboat on the waters of this state unless the boat is numbered in accordance with this chapter and the identifying number set forth in the certificate of number is displayed on each side of the bow of the boat.

No person may operate or give permission for operation of a nonmotorized boat over twelve feet in length or a motorboat on the waters of this state unless a registration validation decal is displayed on each side of the bow of the boat. A violation of this section is a Class 2 misdemeanor.

 

What is required for a valid purchase agreement or bill of sale?

A completed purchase agreement or bill of sale is required for all title transfers and must include the watercraft information (year, make, model, complete HIN), the date of sale, sale price, seller name, buyer name, and be signed by the seller and buyer. Many states have a section on their titles to fill in the required information and a place for the seller and buyer to sign. If any of the required information is missing, or not filled out, a separate bill of sale will be needed (Form 1025).

If purchased from a dealer the purchase agreement will be needed. Any trade-in vehicle/watercraft information will need to be listed on the purchase agreement for calculating excise tax.

Any cross outs, white outs, or other alterations to documents may void them or require an affidavit for correction.

 

How to fill out the Motor Vehicle and Boat Title Application

South Dakota Motor Vehicle and Boat Title Application must be included with all title transfer paperwork. If you have purchased from a South Dakota dealer this should already be included in your title paperwork. If there is more than one buyer both people may need to sign depending on how the names are connected.

Names connected by ‘AND’ or without any designation require both buyers to sign the application.

Names connected by ‘OR’ require only one signature

 

Instructions for filling out the application

Section A: Mark whether this a boat or motor vehicle transfer

Section B: Fill in the watercraft information- full HIN, year, make, model, color, and boat type information

Section C: For each owner fill out the name, address and South Dakota Driver’s License or ID number, or full SSN. If more than one owner fill in the ownership type (or, and, trust, trustee, or DBA)

Section D: Title mailing address if different than the owner’s address

Section E: Contact name, email address and phone number

Section F: Skip this section

Section G: If there is a lien holder fill in their name and address as it should appear on the title

Section H: Printed name and signature of the owners

 

When is the Non-Resident fee applicable?

The South Dakota state statue for the Non-Resident fee went into effect on July 1st, 2024. The fee is $100.00 per title transfer for those who do not have a valid South Dakota driver’s license or ID, or a physical address in South Dakota.

**** AT THIS TIME FALL RIVER COUNTY is not taking any NEW out of state clients for title transfers unless you own property in our county. Please contact another County to see if they are taking new out of state customers.  Contact County Treasurers | South Dakota Department of Revenue (sd.gov)

Can I get an extension on the 45-day requirement to title and register a newly purchased watercraft?

There is not a provision for extension on the 45-day requirement. Interest and penalties will accrue on the motor vehicle excise tax. All fees are assessed from the purchase date regardless of when an applicant applies for title and registration.

 

How is the 3% excise tax calculated?

In lieu of sales and use taxes, South Dakota imposes a 3% excise tax on most watercraft transactions unless exempt. The excise tax is based on the purchase price listed on the bill of sale, purchase order, sales contract, or on the NADA clean retail value.

Purchase price is defined as total consideration of the watercraft price and all accessories not charged tax- including but not limited to rebates, document fees, extended warranties, service contracts and GAP Waiver. Trade in allowances are deducted from the total purchase price only if verified by HIN on the purchase contract AND if that trade in was titled in the name of the applicant.

Exclusions: Discounts are not rebates and are therefore not excise taxable. Insurance is not excise taxable.

If the watercraft was purchased for a nominal amount (less than fair value) excise tax may be calculated based on the NADA clean retail value of the vehicle. If a NADA value can not be obtained an affidavit of value may be required (Form 1012)

 

I purchased a watercraft and trailer together; do I need separate bills of sale?

If a boat trailer and a watercraft are purchased together, either separate bills of sale, or a breakdown of which amount is for the watercraft and which amount is for the trailer, will be required.

 

I received a watercraft as a gift- Do I have to pay excise tax?

If the watercraft is transferred without consideration (no money exchanged) between spouses, between a parent and a child, or between siblings the watercraft is exempt from tax. Otherwise excise tax will be figured on the NADA clean retail value or affidavit of value if a NADA value cannot be obtained.

A valid bill of sale still needs to be completed, and late fees will accrue if not transferred within 45 days from the date of sale.

 

I have inherited a watercraft, what do I do?

If the deceased’s estate is going through probate the court appointed personal representative will need to sign as seller on the title and the PR paperwork sealed by the courts will be needed to show they have authority to sell the watercraft. The original paper title will be required to transfer the title, along with a valid bill of sale. If the title has been lost the personal representative may apply for a duplicate title.

If the deceased’s estate is NOT going through probate a Succession Affidavit will need to be filled out by the qualifying heir. Section C of the affidavit lists the requirements to qualify for transfer by succession, including it having been at least 30 days from the date of death and the estate not going through the courts. If the watercraft is titled or registered in another state, the succession process will need to be done in that state (if the state allows it) before it may be transferred in South Dakota. If it is titled in South Dakota the title may be transferred by succession without the original paper title if it is unable to be located.

 

Can I title my watercraft in the name of a trust?

Yes, a watercraft may be titled in a trust’s name. A copy of the trust paperwork showing the name of the trust, the trustees and the signature page will be required. All trustees will be listed on the title along with the trust and must provide either a South Dakota driver’s license or ID, or an out of state driver’s license or ID and proof of SSN. Depending on how the trust documents read all trustees may be required to sign.

 

Can I title and register my watercraft in South Dakota if I live out of state?

Yes, South Dakota title and registration statutes do not expressly prohibit an out-of-state applicant from titling and registering here. However, your state may prohibit registering your watercraft in another state. No refunds will be issued for any reason.

If you have an out of state driver’s license or ID, you will need to provide a clear copy of proof of your social security number. Acceptable proof is a copy of your social security card or a W2, 1098,1099, paystub or military orders with the full SSN on them.

 

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