(A) A certificate of title to watercraft or an outboard motor may not be transferred if the department has notice that property taxes for property tax years beginning after 1999, are owed on the watercraft or outboard motor. If transfer of title has been denied pursuant to this section, a tax receipt on the watercraft or outboard motor from the person officially charged with the collection of ad valorem taxes in the county where the taxes are due must be accepted as proof that the taxes have been paid. The bill of sale or title to watercraft or an outboard motor must require certification that property taxes that are due and payable for property tax years beginning after 1999, have been paid and are current as of the date of sale.

(B) A person who knowingly sells a watercraft for which he owes unpaid and outstanding property taxes, or on which he knows there is a property tax lien, is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than thirty days. In addition to all applicable criminal penalties, a seller who falsely signs the certification required by subsection (A), that property taxes are current and paid on a watercraft transferred to the buyer, is liable to the buyer for three times the amount of damages directly associated with the false certification, as well as applicable costs and reasonable attorney's fees.

(C) The county treasurer or other appropriate official annually, or more frequently as the county considers appropriate, shall transmit a list of delinquent taxes due on watercraft and outboard motors to the department. The list may be transmitted in any electronic format considered acceptable by the department.

HISTORY: 2000 Act No. 403, Section 1; 2007 Act No. 91, Section 2.A, subsections (A) and (C) eff upon approval by the Governor and subsection (B) eff 3 years after approval by the Governor (approved June 14, 2007); 2010 Act No. 279, Section 4, eff June 16, 2010.

Editor's Note

2007 Act No. 91, Sections 1, 2.B, 3 and 4 provide as follows:

"SECTION 1. The General Assembly finds that the application of the provisions of Section 50-23-295 of the 1976 Code enacted by Act 403 of 2000, to property tax years before the year of the enactment of the statute has caused great inconvenience to both the sellers and owners of used watercraft and outboard motors. The General Assembly further finds that it is appropriate to provide clearly that Section 50-23-295 applies only to property taxes on watercraft and outboard motors that become due and payable after the enactment of the section and that this property is purchased free and clear of the liens for property tax years before the 2000 property tax year."

"SECTION 2.B. Section 50-23-295(B) takes effect three years after the date of approval of this act by the Governor."

"SECTION 3. Used watercraft and outboard motors obtained from a licensed dealer on or after October 3, 2000, are free and clear of the lien for property taxes for property tax years before the 2000 property tax year."

"SECTION 4. Property taxes paid on watercraft and outboard motors for property tax years before the 2000 property tax year are not refundable pursuant to any provision of this act."

Effect of Amendment

The 2007 amendment designated the first undesignated paragraph as subsection (A), in the first sentence substituting "for property tax years beginning after 1999" for "payable by the current owner within the past three years", in the second sentence substituting "where the taxes are due" for "of residence", and in the third sentence substituting "that are due and payable for property tax years beginning after 1999, have been paid and are current as of the date of sale" for "have been paid by the current owner as of the date of sale"; added subsection (B) relating to false signing; designated the second undesignated paragraph as subsection (C), making nonsubstantive changes; and deleted the third undesignated paragraph relating to minimum tax.

The 2010 amendment rewrote subsection (B).