Bill Text: TX HB4032 | 2019-2020 | 86th Legislature | Enrolled

---

Bill Title: Relating to the regulation, permitting, and taxation of certain boats and boat motors; imposing a fee.

Sponsorship: Partisan Bill (Republican 6)

Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB4032 Detail]

Download: Texas-2019-HB4032-Enrolled.html

---

H.B. No. 4032

AN ACT
relating to the regulation, 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 31.037(c), Parks and Wildlife Code, is
amended to read as follows:
(c) The new owner of a vessel shall, not later than the 45th
[20th] day after the date ownership was transferred, submit an
application to the department with:
(1) evidence of ownership;
(2) the new owner's name and address;
(3) the number of the vessel; and
(4) a fee of $2 or an amount set by the commission,
whichever amount is more.
SECTION 4. The heading to Section 31.041, Parks and
Wildlife Code, is amended to read as follows:
Sec. 31.041. DUTIES OF DEALERS, DISTRIBUTORS, AND
MANUFACTURERS; LICENSE REQUIRED [DEALER'S, DISTRIBUTOR'S, AND
MANUFACTURER'S LICENSE].
SECTION 5. Section 31.041, Parks and Wildlife Code, is
amended by amending Subsection (f) and adding Subsections (h) and
(i) to read as follows:
(f) A dealer, distributor, or manufacturer holding a
dealer's, distributor's, or manufacturer's license may issue a
reasonable temporary facsimile of the number issued under
Subsection (c), which may be used by any authorized person. [A
person purchasing a vessel may use the dealer's number for a period
not to exceed 15 days prior to filing an application for a
certificate of number.] The form of the facsimile and the manner of
display of the number shall be prescribed by the department.
(h) Not later than the 45th day after a dealer, distributor,
or manufacturer holding a dealer's, distributor's, or
manufacturer's license sells at the first or a subsequent sale a
vessel or outboard motor, the dealer, distributor, or manufacturer
shall apply, in the name of the purchaser of the vessel or outboard
motor, for a certificate of number or a certificate of title for the
vessel or outboard motor, as applicable, and file with the
department each document necessary to transfer the certificate of
number or certificate of title.
(i) A person purchasing a vessel may use the temporary
facsimile number issued under Subsection (f) for a period not to
exceed 45 days from the date the dealer, distributor, or
manufacturer applies for a certificate of number or a certificate
of title under Subsection (h). The person shall retain the
facsimile number on the vessel for the period described by this
subsection.
SECTION 6. Sections 31.046(a) and (b), Parks and Wildlife
Code, are amended to read as follows:
(a) Except as provided in Subsections (b) and (c) of this
section, the purchaser of a vessel or an outboard motor shall apply
to the department or to a county tax assessor-collector for a
certificate of title not later than the 45th day [20 days] after the
date of the sale of the vessel or outboard motor.
(b) A manufacturer or a dealer who sells a vessel or an
outboard motor to a person other than a manufacturer or a dealer
shall apply to the department or to a county tax assessor-collector
for a certificate of title for the vessel or outboard motor in the
name of the purchaser not later than the 45th day [20 days] after
the date of the sale.
SECTION 7. Section 31.053(c), Parks and Wildlife Code, is
amended to read as follows:
(c) The transferor shall provide the documents or evidence
required by Subsection (a) of this section to the department or the
transferee, as appropriate, in sufficient time to allow the
transferee to register and obtain a certificate of title for the
vessel or outboard motor not later than the 45th day [20 days] after
the date of the sale.
SECTION 8. 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 9. 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 10. Sections 160.041(c) and (e), Tax Code, are
amended to read as follows:
(c) The tax imposed by Section 160.021 is due on the 45th
[20th] working day after the date that the taxable boat or motor is
delivered to the purchaser. The purchaser or the seller, if the
purchaser paid the tax to the seller, shall pay the tax to the
department, to an agent of the department, or to a tax
assessor-collector on or before the due date.
(e) The tax imposed by Section 160.022 or 160.023 is due on
the 45th [20th] working day after the date that the taxable boat or
motor is brought into this state. The person liable for the tax
shall pay the tax to the department or to a tax assessor-collector
on or before the due date.
SECTION 11. 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 12. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4032 was passed by the House on May
10, 2019, by the following vote: Yeas 113, Nays 19, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4032 on May 24, 2019, by the following vote: Yeas 82, Nays 55,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4032 was passed by the Senate, with
amendments, on May 22, 2019, by the following vote: Yeas 25, Nays
6.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor