Relating to the imposition of and a limitation on the sales tax imposed on certain vessels.
Impact
The enactment of HB 2187 would alter existing tax liabilities associated with the sale of recreational vessels in Texas, specifically targeting those preparing for out-of-state transactions. By instituting an $18,000 cap on sales tax for taxable boats or motors, the bill aims to lessen the financial burden on consumers who purchase boats. It is expected to encourage more transactions in the state, facilitating an economic environment that supports the boating industry while also protecting the state's fiscal interests related to tax collection.
Summary
House Bill 2187 aims to address the taxation of vessels by imposing and limiting the sales tax on certain boat transactions. The bill modifies the Parks and Wildlife Code and the Tax Code to provide specific exemptions for vessel repairs and modifications. It establishes that sales taxes will not apply if a boat or motor is sold in Texas for use in another state or nation and is taken out of Texas within a specified time frame. Additionally, if a vessel is docked for repairs and later removed from the state, those transactions will also enjoy tax exemption under certain conditions.
Contention
Debate surrounding HB 2187 centers on concerns regarding revenue implications for the state and local governments. Supporters advocate its potential to boost the boating industry and increase sales by making Texas a more favorable marketplace for vessel purchases. Conversely, critics worry that limiting sales tax revenue could impact public services and infrastructure funding, leading to discussions on the long-term sustainability of such tax policies. Potential adjustments in the allocation of tax proceeds from the amended sales tax structure could also emerge as contentious areas during legislative discussions.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to the substitution of a county sales and use tax for all or a portion of property taxes imposed by certain counties; authorizing the imposition of a tax.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.