| (6) A taxable boat or outboard motor and all accessories
attached thereto purchased outside of Texas and brought into Texas
for use in Texas is subject to use tax under Tax Code, §160.022
(Use Tax), or in lieu of the use tax, a new resident use tax is due
under Tax Code, §160.023 (New Resident), if the taxable boat
or outboard motor and all accessories attached thereto are brought
into Texas by a new resident of Texas.
(7) The purchase of a boat trailer is subject to motor
vehicle sales and use tax under Tax Code, Chapter 152 (Taxes on Sale,
Rental, and Use of Motor Vehicles). The total consideration paid or
to be paid for a boat trailer must be separately stated from the total
consideration paid or to be paid for a taxable boat and/or outboard
motor at the time the boat trailer is registered in Texas. For more
information on the taxation of boat trailers, see §3.74 of this
title (relating to Seller Responsibility) and §3.72 of this title
(relating to Trailers, Farm Machines, and Timber Machines).
(c) Imposition of the tax.
(1) A sales tax is imposed on each retail sale of a
taxable boat or outboard motor transferred for consideration within
the territorial boundaries of Texas.
(A) The sales tax rate is 6.25% of the total consideration
paid or to be paid for each taxable boat or outboard motor sold. The
total consideration paid or to be paid for a taxable boat must be
separately stated from the total consideration paid or to be paid
for an outboard motor. The total amount of sales tax due may not exceed
$18,750 for each taxable boat or outboard motor sold in Texas. The
total amount of sales tax allowed applies separately to the taxable
boat and outboard motor.
(B) The sales tax is the obligation of and shall be
paid by the purchaser of the taxable boat or outboard motor. A dealer
who collects sales tax from the purchaser of a taxable boat or outboard
motor and does not remit the sales tax collected to either the Department
an agent of the Department, or a participating county tax assessor-collector
is liable for the sales tax collected and any penalties that may apply.
(2) Use tax is imposed on the use in Texas of each
taxable boat or outboard motor purchased outside of Texas and brought
into Texas for use in Texas.
(A) The use tax rate is 6.25% of the total consideration
paid or to be paid for the taxable boat or outboard motor, regardless
of any use or depreciation of the taxable boat or outboard motor before
the entry of the taxable boat or outboard motor into Texas. The total
consideration paid or to be paid for a taxable boat must be separately
stated from the total consideration paid or to be paid for each outboard
motor.
(B) The use tax is an obligation of, and shall be paid
by, the person who brings the taxable boat or outboard motor into
Texas. The person obligated to pay Texas use tax may claim a credit
against the use tax due at the time the taxable boat or outboard motor
is titled and/or registered in Texas only for legally imposed state
and local sales or use tax paid on the purchase of the taxable boat
or outboard motor to another state, Puerto Rico, or a possession or
territory of the United States by the purchaser of the taxable boat
or outboard motor before entry into Texas. Acceptable proof of tax
paid includes an out-of-state tax receipt, a seller's bill of sale,
sales invoice, or sales contract identifying the amount of sales or
use tax paid to another state on the sale of the taxable boat or outboard
motor.
(C) A new resident use tax of $15 is due in lieu of
the use tax for each taxable boat or outboard motor owned by a new
resident in any other state or foreign country and brought into Texas
by the new resident if the taxable boat or outboard motor is brought
into Texas by the new resident within 45 working days after becoming
a new resident. The tax is an obligation of, and shall be paid by,
the new resident who brings the taxable boat or outboard motor into
Texas. A new resident cannot claim a credit against the new resident
use tax due at the time the taxable boat or outboard motor is titled
and/or registered in Texas for any legally imposed state and local
sales or use tax due and paid to another state on the purchase of
the taxable boat or outboard motor.
(D) The use tax is not due on the use of a taxable
boat or outboard motor brought into Texas for use in Texas if the
taxable boat or outboard motor:
(i) is a federally documented vessel or has a current
certificate of number or registration issued by a United States Coast
Guard approved numbering system of another state;
(ii) is issued a temporary use permit that must be
present on board the boat at all times while the taxable boat or outboard
motor is located within the territorial boundaries of Texas; and
(iii) the boat or outboard motor is removed from the
territorial boundaries of Texas on or before the expiration date of
the temporary use permit.
(E) Subparagraphs (A) and (B) of this paragraph apply
to the use of a taxable boat or outboard motor brought into Texas
that remains within the territorial boundaries of Texas after the
expiration date of the temporary use permit. Credit is not allowed
for the $150 temporary use permit fee against any Texas use tax that
may be due.
(d) Payment of the tax.
(1) The seller and purchaser must complete an Application
for Certificate of Title and/or Registration for each sale of a taxable
boat or outboard motor in Texas, and:
(A) if the seller collects the sales tax from the purchaser,
the seller must remit the tax and the Application for Certificate
of Title and/or Registration to either the Department, an agent of
the Department, or a participating county tax assessor-collector within
45 working days from the date the taxable boat or outboard motor is
delivered to the purchaser in Texas; or
(B) if the seller gives the Application for Certificate
of Title and/or Registration to the purchaser, the purchaser is then
required to remit the sales tax and the Application for Certificate
of Title and/or Registration to either the Department, an agent of
the Department, or a participating county tax assessor-collector within
45 working days from the date the taxable boat or outboard motor is
delivered to the purchaser in Texas.
(2) Persons who owe use tax must complete an Application
for Certificate of Title and/or Registration and remit the use tax
and the Application for Certificate of Title and/or Registration to
either the Department, an agent of the Department, or a participating
county tax assessor-collector within 45 working days after the date
the taxable boat or outboard motor is brought into Texas.
(3) Persons transferring ownership of a taxable boat
or outboard motor in Texas when no sales or use tax is due as a result
of a tax exemption, even exchange, or gift of a taxable boat or outboard
motor, must complete an Application for Certificate of Title and/or
Registration indicating why no sales or use tax is due and file the
Application for Certificate of Title and/or Registration with either
the Department, an agent of the Department, or a participating county
tax assessor-collector within 45 working days after the date the taxable
boat or outboard motor is transferred in Texas.
(e) Failure of tax remittance by the selling dealer.
(1) If a purchaser paid sales tax imposed by Tax Code, §160.021
(Retail Sales Tax), to a selling dealer, and the dealer failed to
remit the sales tax within 45 working days from the date of sale,
the Department, agent of the Department, or participating county tax
assessor-collector shall accept an application for Certificate of
Title and/or Registration for a taxable boat or outboard motor from
the purchaser without payment of additional sales tax by the purchaser.
The purchaser must provide proof that the sales tax was paid to the
dealer. Acceptable proof includes an invoice, bill of sale, or a receipt
signed by the dealer or its representative showing that the sales
tax was paid to the dealer.
(2) The Department, agent of the Department, or participating
county tax assessor-collector shall notify the comptroller in writing
of the dealer's failure to remit the tax. The notice must:
(A) be made before the 31st day after the date the
application for Certificate of Title and/or Registration is accepted;
(B) contain the name and address of the dealer; and
(C) include copies of documentation provided by the
purchaser showing sales tax was paid to the dealer.
(f) Purchase of tangible personal property or accessories
for resale.
(1) A properly completed resale certificate as provided
under Tax Code, Chapter 151, may be used to purchase tangible personal
property tax-free to be combined into a taxable boat or outboard motor
held for sale in the purchaser's regular course of business.
Cont'd... |
