82R12142 BPG-D
By: Torres H.C.R. No. 93
CONCURRENT RESOLUTION
WHEREAS, The Texas marine industry was placed at a severe
disadvantage in July 2010, when Florida instituted a cap on sales
and use taxes for boat sales; and
WHEREAS, In Florida, the maximum sales or use tax that may be
levied against a sale of a boat or vessel is now $18,000; once the
sales or use tax is paid, the owner has the right to keep the boat in
Florida as long as desired; the Florida Boat-Sales Use Tax Cap
legislation, also known as the Florida Maritime Full Employment
Act, was included in the larger Jobs for Florida Bill because the
state had been losing boat sales and service business and the
attendant jobs and revenue to other states and countries offering
more favorable sales tax treatment; and
WHEREAS, The Florida sales and use tax cap is expected to
stimulate sales, especially of boats valued at over $300,000, and
to encourage boat buyers and current owners to register, keep, and
use their watercraft in the state; according to one estimate, this
stimulus will allow Florida to gain an estimated $18.7 million in
sales tax revenue while creating more jobs in the marine industry;
and
WHEREAS, Texas is currently the country's second largest boat
sales market, but its sales tax laws discourage the purchase of
vessels over 65 feet, and the new sales and use tax cap in Florida
gives that state an advantage that is likely to cost the Lone Star
State sales, tax revenue, and jobs; and
WHEREAS, To remain competitive in the marine services
industry, Texas must ensure that its tax policies do not encourage
prospective boat buyers to take their business to another state;
now, therefore, be it
RESOLVED, That the 82nd Legislature of the State of Texas
hereby request the lieutenant governor and the speaker of the house
of representatives to create a joint interim committee to study tax
policy as it relates to boat sales and marine services and to
evaluate the competitiveness of the marine services industry in
Texas as compared to Florida; and, be it further
RESOLVED, That the committee's proceedings and operations be
governed by such general rules and policies for joint interim
committees as the 82nd Legislature may adopt.