The tax is imposed on every retail sale of a boat that is 115 feet in length or less measured from the tip of the bow in a straight line to the stern, including sailboats, inboards, outboards and personal watercraft.
The tax does not apply to canoes, kayaks, inflatable boats, punts or boats designed to be propelled only by a paddle or pole. These crafts and others excluded from boat tax are subject to Texas Limited Sales and Use Tax.
The tax is imposed on every retail sale of a gasoline or diesel internal combustion motor.
The tax does not apply to electric motors (such as trolling motors), unless an electric motor is attached to a boat subject to boat tax and is sold with that boat for a single sales price. Electric motors are subject to Texas Limited Sales and Use Tax.
The state boat and boat motor tax rate is 6.25 percent of the taxable value. No local tax applies.
The taxable value is the total amount paid for a boat or boat motor and includes all accessories attached before or at the time of sale, transportation costs before the sale and any U.S. manufacturer's or importer's excise taxes.
Yes. The taxable value of the boat or boat motor may be reduced by the amount of the trade-in.
A Texas resident owes use tax when a boat or boat motor is purchased in another state and is brought into Texas for use in Texas.
The use tax rate is 6.25 percent, the same as the boat and boat motor sales tax, with a credit given for any sales or use tax legally paid to another state.
A new Texas resident who brings a boat or boat motor into Texas qualifies for a special $15 use tax instead of the 6.25 percent use tax.
Generally, nonprofit organizations are not exempted from the tax.
However, sales to volunteer fire departments, the federal government, Texas state agencies, Texas cities, counties and other political subdivisions, are exempt.
The tax is paid to the Texas Parks and Wildlife Department or to the county tax assessor-collector when the boat is titled and registered in Texas.