Alabama Boat Title Requirements: Exemptions and Filing Steps

Alabama boat title requirements apply to vessels built after December 31, 2023, and to any boat whose state of principal use becomes Alabama on or after January 1, 2024. If your boat falls into either group, you have 20 days from the purchase or from the date Alabama became its home state to file a title application, and the total fee is $25. Smaller and paddle-powered boats are generally exempt.

Which Boats Need a Title

The titling law sits in Title 33, Chapter 5B of the Alabama Code and reaches two categories of vessel: boats whose construction finished after December 31, 2023, and boats that become principally used in Alabama on or after January 1, 2024.1Alabama Department of Revenue. Vessel Titles – FAQ Categories

For boats under 18 feet, the engine size decides the question. A vessel shorter than 18 feet needs a title only if its engine is rated at 75 horsepower or greater.1Alabama Department of Revenue. Vessel Titles – FAQ Categories A 16-foot fishing boat with a 50-horsepower outboard falls outside the requirement. A jet ski with a 75-horsepower engine falls inside it.

Boats That Are Exempt

Several categories of watercraft sit outside the titling requirement entirely:

  • Canoes, kayaks, rowboats, and other boats propelled solely by paddle or oar.
  • Sailboats under 18 feet propelled only by sail.
  • Any watercraft under 18 feet with an engine below 75 horsepower.
  • Boats already carrying federal documentation from the U.S. Coast Guard.
  • Boats not yet delivered from the builder, or being held by a dealer for sale or lease.
  • Vessels owned by the United States, any state, a foreign government, or their political subdivisions.
  • Watercraft used solely as a lifeboat on another vessel.

Boats built on or before December 31, 2023, are also exempt from mandatory titling.

Voluntary Titles for Older Boats

If your pre-2024 boat is 26 feet or longer and Alabama is its state of principal use, you can apply for a title even though the law does not require one.2Alabama Administrative Code. Rule 810-5-75-.01 – Procedures for Titling a Vessel A clean title can make a future sale or financing easier.

Title vs. Registration

A certificate of title and a vessel registration are two different documents, and most motorized boats need both. The title, handled by the Alabama Department of Revenue, proves ownership. Registration, handled by the Alabama Law Enforcement Agency’s Marine Patrol Division, gives your boat its “AL” number and validation decals for use on the water, and you obtain it through the judge of probate or county license commissioner. If you are titling a boat for the first time and it does not yet have a vessel number, you can apply for one as part of the title application.3Alabama Department of Revenue. What Are the Vessel Title Application Requirements?

What to Gather Before Applying

Have these ready before you head to your county office or work with a designated agent:

  • The Hull Identification Number (HIN), a 12-character code permanently affixed to the vessel. If the boat lacks one, apply for a state-assigned HIN through the ALEA Marine Patrol Division before submitting the title application.4Alabama Department of Revenue. How Do I Get a Hull Identification Number (HIN) Assigned to My Vessel?
  • Proof of ownership: a Manufacturer’s Statement of Origin for a new boat, or the prior owner’s signed-over title or a bill of sale for a used boat.
  • Full names and addresses for the applicant and every co-owner.
  • Lienholder name and address if the boat is financed. The lien will be noted on the title.
  • Your existing Alabama vessel number, or an application for one if you don’t have it yet.3Alabama Department of Revenue. What Are the Vessel Title Application Requirements?

Bringing a boat in from another state? Attach your prior state’s registration and include the out-of-state registration number.5Alabama Law Enforcement Agency. Application for Boat Registration, Transfer, Replacement and Duplicate

How and Where to File

Title applications must be submitted electronically to ALDOR by a designated agent.2Alabama Administrative Code. Rule 810-5-75-.01 – Procedures for Titling a Vessel For most people, that means visiting the local county probate office or license commissioner, who processes the submission for you. A marine dealer selling you a new boat can also file as a designated agent.

The total cost is $25: a $20 application fee to ALDOR and a $5 commission for the agent or licensing official.3Alabama Department of Revenue. What Are the Vessel Title Application Requirements?

The 20-Day Deadline

File within 20 days of the date ownership transferred to you or the date Alabama became the vessel’s state of principal use, whichever comes later.3Alabama Department of Revenue. What Are the Vessel Title Application Requirements? That 20 days is your filing window, not an estimate of how long it takes ALDOR to issue the title.

When Ownership Is Unclear

If ALDOR is not satisfied that ownership is properly established or suspects undisclosed liens, it can require you to post a surety bond before issuing the title. The bond is set at one and a half times the vessel’s fair market value from a nationally recognized valuation guide.2Alabama Administrative Code. Rule 810-5-75-.01 – Procedures for Titling a Vessel This usually comes up with older boats that lack a clear chain of documentation, so hold on to bills of sale and any prior titles.

Sales Tax on the Purchase

Titling fees are only part of the cost. Alabama charges 4% state sales tax on the purchase price of a boat sold without a trailer or motor. Motors sold separately are also taxed at 4%, and trailers sold alone are taxed at 2%. When a boat and trailer are sold together, the dealer’s invoice must break out the prices so each piece is taxed at its own rate.6Legal Information Institute (Cornell Law School). Alabama Admin Code Rule 810-6-2-.46.01 – Marine Dealers, Sales By Local county and municipal taxes may apply on top of the state rate. If you buy the boat out of state and bring it in, use tax generally applies at the same rate, with credit for sales tax already paid elsewhere.

Replacing a Lost or Damaged Title

If your certificate of title is lost or destroyed, you can apply for a duplicate through the same county offices that process original applications. The duplicate fee is $75.5Alabama Law Enforcement Agency. Application for Boat Registration, Transfer, Replacement and Duplicate That is three times the cost of the original, so store the certificate somewhere safe. If you financed the boat, your lender is likely holding the title until the loan is paid off, so a duplicate would not be your concern until then.