Texas Senate Bill SB845

Texas 2015 - 84th Regular

Caption

Relating to an exemption from and a limitation on the sales tax imposed on certain boats and boat motors.

Impact

The bill's implications extend to the regulation of sales tax for recreational vehicles, aiming to make it more favorable for both retailers and consumers in the boating market. By enacting these changes, the legislation is expected to stimulate local economies, particularly along coastlines and lakes where boating activities flourish. The impact will likely be felt in increased sales and repairs of boats as purchasing becomes more financially manageable.

Summary

Senate Bill 845 proposes amendments to the Texas Tax Code specifically concerning the sales tax on boats and boat motors. The bill introduces exemptions for the sales of certain boats and motors under specific circumstances, allowing for sales tax removal if the items are purchased for use out of state or if they are sold for repair in registered facilities before being removed from Texas. This amendment is intended to support the boating industry by easing tax burdens on consumers looking to purchase or repair watercraft.

Contention

There may be potential points of contention regarding the tax exemption specifics outlined in the bill, particularly related to the enforcement of the restrictions on state sales. Questions could arise about the accountability of boat repair facilities and the classification of 'use' during the modification period, as well as concerns about tax revenue impacts on state coffers. Stakeholders may worry that the exemption could create loopholes that might be exploited, leading to unanticipated losses in taxable revenue.