House Bill 4032
Effective Sept. 1, 2019
House Bill 4032 changes the definition of a boat to include all vessels 115 feet or shorter in length, measured from the tip of the bow in a straight line to the stern. This includes both commercial and noncommercial boats, regardless of who sold the boat.
The bill creates an exemption for boats and motors sold for use in another state if the boat or motor
The bill also provides for the issuance of a temporary use permit allowing exempt use in Texas of a taxable boat or boat motor purchased outside of Texas. The fee for the permit is $150 and is valid for 90 days. An owner can obtain two permits per calendar year. The second permit cannot be issued before the 30th day after the date the first permit expires.
Lastly, the bill limits the amount of boat sales tax on the sale of a taxable boat or motor to $18,750 (300,000 taxable sales price). The bill also changes the due date for boat and boat motor sales and use tax to 45 working days (previously 20) after the taxable boat or motor is delivered to the purchaser or brought into Texas for use.
The purchaser of a taxable boat or boat motor in Texas is responsible for paying the boat and boat motor sales tax. If the purchaser pays the tax to a licensed Texas dealer, the tax becomes the responsibility of the dealer.
If the dealer did not collect the tax, or if the boat or boat motor was purchased from someone who is not a dealer, the purchaser must pay the tax directly to the Texas Parks and Wildlife Department or to a county tax assessor-collector within 20 working days from the date the taxable boat or boat motor is delivered to the purchaser. It is paid at the time of boat registration.
6 1/4 (.0625) percent of sales price minus any trade-in allowance of another taxable boat or boat motor.
Boat sales tax is due within 20 working days from delivery.
Boat and boat motor use tax is due on any taxable boat or boat motor purchased outside Texas and brought into Texas. The user is responsible for paying the tax to Texas Parks and Wildlife Department or to a county tax assessor-collector within 20 working days after the date that the taxable boat or boat motor is brought into Texas.
6 1/4 (.0625) percent use tax less credit for taxes paid to another state, unless the $15 new resident tax applies.
Boat use tax is due within 20 working days from the date the boat or motor is brought into the state.
Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.
Use the boat sales tax manual computation worksheet to calculate your boat and boat motor sales and use tax.
For boat and boat motor title and registration information, visit the Texas Parks and Wildlife Department website.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.