86R9143 BEF/AAF-F
By: Taylor S.B. No. 1669
A BILL TO BE ENTITLED
AN ACT
relating to the permitting and taxation of certain boats and boat
motors; imposing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.003(16), Parks and Wildlife Code, is
amended to read as follows:
(16) "Distributor" means a person who offers for sale,
sells, or processes for distribution new vessels [boats] or
outboard motors to dealers in this state.
SECTION 2. Section 31.006(a), Parks and Wildlife Code, is
amended to read as follows:
(a) The department may authorize a dealer who holds a
dealer's or manufacturer's number to act as the agent of the
department under Subchapter B [of this chapter] and under Chapter
160, Tax Code, for the issuance of certificates of number and the
collection of fees and taxes for vessels and outboard motors
[boats] sold by that dealer.
SECTION 3. Section 160.001(2), Tax Code, is amended to read
as follows:
(2) "Boat" means a vessel not more than 115 feet in
length, measured from the tip of the bow in a straight line to the
stern [has the meaning assigned by Section 31.003, Parks and
Wildlife Code].
SECTION 4. Subchapter B, Chapter 160, Tax Code, is amended
by adding Sections 160.0246, 160.0247, and 160.026 to read as
follows:
Sec. 160.0246. EXEMPTION FOR CERTAIN BOATS AND MOTORS
TEMPORARILY USED IN THIS STATE. (a) The taxes imposed by this
chapter do not apply to the sale of a taxable boat or motor if:
(1) the boat or motor is sold in this state for use in
another state or nation and is removed from this state not more than
10 days after the date of purchase;
(2) the boat or motor:
(A) is sold in this state for use in another state
or nation;
(B) not later than the 10th day after the date the
boat or motor is purchased, is docked at or placed in a boat repair
facility registered with the comptroller for repairs or
modifications;
(C) is not used by a person while it is being
repaired or modified, except as necessary to test the repairs or
modifications; and
(D) is removed from this state not more than 20
days after the date the repairs or modifications are finished; or
(3) the boat or motor:
(A) is sold in this state for use in another state
or nation;
(B) displays a permit described by Section
160.0247 at all times after the boat or motor is purchased until the
boat or motor is removed from this state; and
(C) is removed from this state not more than 90
days after the date of purchase.
(b) The tax imposed by Section 160.022 does not apply to a
taxable boat or motor used in this state or brought into this state
for use if the boat or motor:
(1) has a current certificate of number issued under
any federal law or a federally approved numbering system of another
state;
(2) displays a permit described by Section 160.0247 at
all times while the boat or motor is located in this state; and
(3) is removed from this state not more than 90 days
after the date the boat or motor is brought into this state.
(c) The comptroller shall adopt rules and procedures to
implement this section and Section 160.0247.
Sec. 160.0247. TEMPORARY USE PERMIT. (a) The comptroller
or an agent of the department may issue a temporary use permit to
the owner of a taxable boat or motor that qualifies for an exemption
from tax under Section 160.0246(a)(3) or (b).
(b) The fee for a permit is $150.
(c) A permit is valid for 90 days and may not be renewed.
(d) The owner of a taxable boat or motor may obtain not more
than two permits in a calendar year for the boat or motor. The
second permit in a calendar year may not be issued before the 30th
day after the date the first permit expires.
Sec. 160.026. LIMITATION ON AMOUNT OF TAX. Notwithstanding
any other law, the tax imposed under Section 160.021 on the sale of
a taxable boat or motor may not exceed $18,750.
SECTION 5. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 6. This Act takes effect September 1, 2019.