Texas Senate Bill SB1859

Texas 2009 - 81st Regular

Caption

Relating to the exemption from the sales and use tax of boat slip rental fees charged at certain marinas severely damaged by Hurricane Ike.

Impact

If enacted, SB1859 would specifically amend the Texas Tax Code, adding a section that outlines this exemption. Importantly, the bill clarifies that the exemption applies only to fees from marinas that suffered substantial damage—at least $1 million—in the aftermath of Hurricane Ike. This legislative change recognizes the unique circumstances faced by these marinas, attempting to support their financial recovery and sustainability in the wake of natural disaster impacts.

Summary

Senate Bill 1859 proposes an exemption from the sales and use tax for boat slip rental fees charged at specific marinas that were severely damaged by Hurricane Ike. The bill targets private clubs located in counties with populations exceeding three million and aims to mitigate the financial burden caused by the destruction from the hurricane. By exempting these rental fees from taxation, the bill is intended to provide some relief to affected marinas and their patrons, encouraging economic recovery in these regions.

Contention

There may be points of contention surrounding the bill, primarily around the criteria for the exemption and the implications for tax revenues. While proponents would argue that assisting these specific marinas is essential for local economic revival, critics may raise concerns about the potential loss of tax income for the state and whether this exemption creates a precedent for future special exemptions. Balancing local support against overall tax structure impacts will be a central theme in discussions about the bill.