| 1 | 1 | | 85R7700 ADM-D |
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| 2 | 2 | | By: Taylor of Galveston S.B. No. 1032 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an exemption from and a limitation on the sales tax |
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| 8 | 8 | | imposed on certain boats and boat motors. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 160, Tax Code, is amended |
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| 11 | 11 | | by adding Sections 160.0246 and 160.026 to read as follows: |
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| 12 | 12 | | Sec. 160.0246. EXEMPTION FOR CERTAIN BOATS AND MOTORS TO BE |
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| 13 | 13 | | USED OUTSIDE THIS STATE. (a) The taxes imposed by this chapter do |
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| 14 | 14 | | not apply to the sale of a taxable boat or motor if: |
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| 15 | 15 | | (1) the boat or motor is sold in this state for use in |
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| 16 | 16 | | another state or nation and is removed from this state not more than |
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| 17 | 17 | | 10 days after the date of purchase; or |
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| 18 | 18 | | (2) the boat or motor: |
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| 19 | 19 | | (A) is sold in this state for use in another state |
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| 20 | 20 | | or nation; |
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| 21 | 21 | | (B) not later than the 10th day after the date the |
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| 22 | 22 | | boat or motor is purchased, is docked at or placed in a boat repair |
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| 23 | 23 | | facility registered with the comptroller for repairs or |
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| 24 | 24 | | modifications; |
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| 25 | 25 | | (C) is not used by a person while it is being |
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| 26 | 26 | | repaired or modified, except as necessary to test the repairs or |
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| 27 | 27 | | modifications; and |
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| 28 | 28 | | (D) is removed from this state not more than 20 |
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| 29 | 29 | | days after the date the repairs or modifications are finished. |
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| 30 | 30 | | (b) The comptroller shall adopt rules and procedures to |
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| 31 | 31 | | implement this section. |
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| 32 | 32 | | Sec. 160.026. LIMITATION ON AMOUNT OF TAX. Notwithstanding |
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| 33 | 33 | | any other law, the tax imposed under Section 160.021 on the sale of |
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| 34 | 34 | | a taxable boat or motor may not exceed $18,750. |
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| 35 | 35 | | SECTION 2. The change in law made by this Act does not |
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| 36 | 36 | | affect tax liability accruing before the effective date of this |
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| 37 | 37 | | Act. That liability continues in effect as if this Act had not been |
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| 38 | 38 | | enacted, and the former law is continued in effect for the |
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| 39 | 39 | | collection of taxes due and for civil and criminal enforcement of |
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| 40 | 40 | | the liability for those taxes. |
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| 41 | 41 | | SECTION 3. This Act takes effect September 1, 2017. |
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