CHAPTER 160. TAXES ON SALES AND USE OF BOATS AND BOAT MOTORS

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TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE E. SALES, EXCISE, AND USE TAXES

CHAPTER 160. TAXES ON SALES AND USE OF BOATS AND BOAT MOTORS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 160.001. DEFINITIONS. In this section:

(1) "Agent of the department" means an agent authorized under

Section 31.006, Parks and Wildlife Code.

(2) "Boat" has the meaning assigned by Section 31.003, Parks and

Wildlife Code.

(3) "Dealer or manufacturer" means a dealer or manufacturer as

defined under Section 31.003, Parks and Wildlife Code, who has

applied for and holds a current number under Section 31.041,

Parks and Wildlife Code.

(4) "Department" means the Parks and Wildlife Department.

(5) "Outboard motor" has the meaning assigned by Section 31.003,

Parks and Wildlife Code.

(6) "Retail sale" means a sale of an item other than a sale in

which the dealer or manufacturer acquires the item for the

exclusive purpose of resale.

(7) "Sale" includes:

(A) an installment and credit sale;

(B) an exchange of property for property or money;

retains title as security for payment of the purchase price; and

(D) any other closed transaction that constitutes a sale.

(8) "Tax assessor-collector" means a county tax

assessor-collector.

(9) "Taxable boat or motor" means:

(A) a boat other than a canoe, kayak, rowboat, raft, punt, or

other vessel designed to be propelled by paddle, oar, or pole; or

(B) an outboard motor.

(10) "Seller-financed sale" means a retail sale of a taxable

boat or boat motor in which the seller collects all or part of

the total consideration in periodic payments and retains a lien

on the boat or boat motor until all payments have been received.

The term does not include a retail sale of a taxable boat or boat

motor in which a person other than the seller provides the

consideration for the sale and retains a lien on the boat or boat

motor as collateral.

(11) "Title" means the certificate of title document as provided

for under Chapter 31, Parks and Wildlife Code.

(12) "Use" does not include the storage, display, or holding of

an item exclusively for sale.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991. Amended by Acts 1993, 73rd Leg., ch. 587, Sec. 30,

eff. Oct. 1, 1993; Acts 1993, 73rd Leg., ch. 718, Sec. 5, eff.

Sept. 1, 1993; Acts 1995, 74th Leg., ch. 76, Sec. 17.01(50), eff.

Sept. 1, 1995.

Sec. 160.002. TOTAL CONSIDERATION. (a) "Total consideration"

means the amount paid or to be paid for a taxable boat or motor,

including accessories attached on or before the sale, without

deducting:

(1) the cost of the item;

(2) the cost of material, labor or service, interest paid, loss,

or any other expense;

(3) the cost of transportation of the item before its sale; or

(4) the amount of any manufacturer's or importer's excise tax

imposed on the item by the United States.

(b) "Total consideration" does not include amounts separately

stated on the bill or contract for the following:

(1) a cash discount;

(2) a full cash or credit refund to a customer of the sales

price of the item returned to the seller;

(3) the amount charged for labor or service rendered in

installing, applying, remodeling, or repairing the item sold;

(4) a financing, carrying, or service charge or interest on

credit extended on the item sold under a conditional sale or

other deferred payment contract;

(5) the value of a taxable boat or motor taken by a seller as

all or a part of the consideration for sale of the item; or

(6) a charge for transportation of the item after a sale.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

Sec. 160.003. SUPERVISION. (a) The comptroller shall supervise

the collection of the taxes imposed by this chapter and adopt

rules for the determination of the taxable value of taxable boats

and motors and the administration of this chapter.

(b) The comptroller shall furnish a copy of the rules to each

tax assessor-collector, each agent of the department, and the

department. Each tax assessor-collector and each agent of the

department shall consistently apply the rules authorized by this

section.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991. Amended by Acts 1993, 73rd Leg., ch. 718, Sec. 6,

eff. Sept. 1, 1993.

SUBCHAPTER B. IMPOSITION OF TAX

Sec. 160.021. RETAIL SALES TAX. (a) A tax is imposed on every

retail sale of a taxable boat or motor sold in this state. The

tax is an obligation of and shall be paid by the purchaser of the

taxable boat or motor. If the purchaser pays the tax to the

seller, the tax is an obligation of and shall be paid by the

seller.

(b) The tax rate is 6-1/4 percent of the total consideration.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991. Amended by Acts 1999, 76th Leg., ch. 243, Sec. 1,

eff. Sept. 1, 1999.

Sec. 160.022. USE TAX. (a) A use tax is imposed on a taxable

boat or motor purchased at retail outside this state and used in

this state or brought into this state for use by a Texas resident

or other person who is domiciled or doing business in this state.

The tax is an obligation of and shall be paid by the person who

uses the boat or motor in this state or brings the boat or motor

into this state.

(b) The tax rate is 6-1/4 percent of the total consideration.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

Sec. 160.023. NEW RESIDENT. (a) A use tax is imposed on a new

resident of this state who brings into this state for use in this

state a taxable boat or motor that has been purchased and owned

by the new resident in any other state or foreign country.

(b) The tax is $15 for each taxable boat or motor.

imposed by Section 160.022.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

Sec. 160.024. EXEMPTION. The taxes imposed by this chapter do

not apply to the sale of a taxable boat or motor or to the use of

a taxable boat or motor by this state or its political

subdivisions or the federal government.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

Sec. 160.0245. EXEMPTION FOR EMERGENCY SERVICE ORGANIZATIONS.

The taxes imposed by this chapter do not apply to the sale of a

taxable boat or motor to or to the use of a taxable boat or motor

by a volunteer fire department or other department, company, or

association organized for the purpose of answering fire alarms

and extinguishing fires or for the purpose of answering fire

alarms, extinguishing fires, and providing emergency medical

services, the members of which receive no compensation or only

nominal compensation for their services rendered, if the boat or

motor is used exclusively by the department, company, or

association.

Added by Acts 2001, 77th Leg., ch. 190, Sec. 1, eff. May 21,

2001.

Sec. 160.025. CREDIT FOR OTHER TAXES. A person is entitled to a

credit against the tax imposed by Section 160.022 on a taxable

boat or motor in an amount equal to the amount of any similar tax

paid by the person in another state on the sale, purchase, or use

of the taxable boat or motor if the state in which the tax was

paid provides a similar credit for a taxpayer of this state.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

SUBCHAPTER C. COLLECTION AND ENFORCEMENT OF TAXES

Sec. 160.041. COLLECTION PROCEDURE. (a) The department, each

agent of the department, and each tax assessor-collector shall

collect the taxes imposed by this chapter. The department, agent

of the department, or tax assessor-collector of the county in

which an application for a Texas certificate of number or

certificate of title for a taxable boat or motor is made shall

collect the taxes imposed by this chapter on that boat or motor.

(b) Except as provided by Subsection (d), the department, agent

of the department, or the tax assessor-collector may not accept

an application for a Texas certificate of number or certificate

of title for a taxable boat or motor from a person unless the

tax, if any, is paid.

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.

(d) If a purchaser pays the tax imposed by Section 160.021 to

the seller, and the seller fails to remit the tax in the time and

manner required by Subsection (c), the department, agent of the

department, or county tax assessor-collector shall accept an

application for a Texas certificate of number or certificate of

title for a taxable boat or motor from the purchaser if the

purchaser provides proof that the tax was paid to the seller. The

comptroller shall adopt rules establishing the method of proof

required.

(e) The tax imposed by Section 160.022 or 160.023 is due on the

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.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991. Amended by Acts 1993, 73rd Leg., ch. 718, Sec. 7,

eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 243, Sec. 2, eff.

Sept. 1, 1999.

Sec. 160.042. REQUIRED AFFIDAVITS. (a) A person obligated to

pay a tax imposed by this chapter on a transaction shall file the

affidavit as provided by this section with the department, agent

of the department, or tax assessor-collector on payment of a tax

imposed by this chapter.

(b) If a taxable boat or motor is sold by a person at a retail

sale, the seller and purchaser shall make a joint affidavit

stating the value in dollars of the total consideration for the

boat or motor at the time of sale.

as a result of a gift, the donor shall make an affidavit stating

the nature of the transaction.

(d) If the ownership of a taxable boat or motor is transferred

as a result of an even exchange, the parties shall make a joint

affidavit stating the nature of the transaction.

(e) The department, agent of the department, or the tax

assessor-collector shall examine each affidavit for the purpose

of determining the truth and accuracy of the information it

contains. If the department, agent of the department, the tax

assessor-collector, or the comptroller has reason to question the

truth of the information in an affidavit, or if any material fact

fails to meet the rules adopted by the comptroller, the

department, agent of the department, the tax assessor-collector,

or the comptroller may require any party to the affidavit to

furnish substantiation of information in the affidavit before

accepting an application for a Texas certificate of number or

certificate of title.

(f) The department, agent of the department, and the tax

assessor-collector shall keep a copy of each affidavit and any

substantiating materials until it is called for by the

comptroller for auditing.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991. Amended by Acts 1993, 73rd Leg., ch. 718, Sec. 8,

eff. Sept. 1, 1993.

Sec. 160.043. PAYMENT BY SELLER. If the comptroller on an audit

of the records of a seller finds that the amount of tax due was

incorrectly reported on a joint affidavit and that the amount of

tax paid was less than the amount due or that the seller failed

to execute and deliver to the purchaser a joint affidavit and any

other documents necessary to register the taxable boat or motor,

the seller and purchaser are jointly and severally liable for the

amount of the tax determined to be due.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

Sec. 160.044. TAX RECEIPTS. (a) The comptroller shall

prescribe the form of a tax receipt to be issued to a person

paying a tax imposed by this chapter.

(b) The department, agent of the department, or tax

assessor-collector collecting a tax imposed by this chapter

shall:

(1) issue the original receipt to the person paying the tax; and

(2) retain one duplicate copy of the receipt as a permanent

record of the transaction according to the rules of the

comptroller.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991. Amended by Acts 1993, 73rd Leg., ch. 718, Sec. 9,

eff. Sept. 1, 1993.

Sec. 160.045. PENALTY. (a) A person who fails to pay a tax

imposed by this chapter when due forfeits five percent of the

amount due as a penalty, and if the person fails to pay the tax

before the 31st day after the date on which the tax is due, the

person forfeits an additional five percent.

(b) The minimum penalty imposed by this section is $1.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

Sec. 160.046. RECORDS. (a) The seller of a taxable boat or

motor shall keep at the seller's principal office for at least

four years from the date of the sale a complete record of each

sale of a taxable boat or motor. The record must include a copy

of the invoice of each item sold. The invoice copy must show the

full price of the taxable boat or motor and the itemized price of

all its accessories. All sales and supporting records of a seller

are open to inspection and audit by the comptroller.

(b) A seller's business records must show the total receipts

from all sources of income and expense, including transactions

involving taxable boats and motors.

at the time of sale, the seller shall keep, at the seller's

principal office for at least four years from the date of the

sale, documentation of complete payment in the form of:

(1) a copy of the payment instrument or a receipt for cash

received; and

(2) a copy of the receipt for title application, registration,

and boat or boat motor tax issued by the county tax

assessor-collector or the department or a written statement by

the purchaser that:

(A) is signed and dated;

(B) indicates the date on which the seller provided to the

purchaser each of the documents necessary to apply for the title,

motor tax; and

that the purchaser must pay a tax to the county tax

assessor-collector or the department.

(d) For a seller-financed sale, the seller shall keep at the

seller's principal office for at least four years from the date

on which the seller receives the final payment for the taxable

boat or motor:

(1) the lienholder's copy of the receipt for title application,

registration, and boat or boat motor tax issued by a county tax

assessor-collector or the department; and

(2) a ledger or other document containing a complete record of

the payment history for that boat or boat motor, including:

(A) the name and address of the purchaser;

(B) the total consideration;

or boat motor is sold;

(D) the date and amount of each subsequent payment;

(E) the date of sale; and

(F) the date of any repossession.

(e) For a sale for resale, the seller shall keep, at the

seller's principal office for at least four years from the date

of the sale, the purchaser's written statement of resale on a

form prescribed by the comptroller.

(f) Any person, other than the seller's employee, acting for the

seller of a taxable boat or boat motor has the same

record-keeping responsibilities as the seller.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991. Amended by Acts 1993, 73rd Leg., ch. 587, Sec. 31,

eff. Oct. 1, 1993.

SUBCHAPTER D. PENALTIES

Sec. 160.061. OPERATION; PENALTY. (a) A person commits an

offense if the person knowingly operates a taxable boat or motor

in this state and the person knows that a tax imposed by this

chapter on the boat or motor has not been paid and is delinquent.

(b) An offense under this section is a Class B misdemeanor.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

Sec. 160.062. PENALTY FOR SIGNING FALSE AFFIDAVITS. (a) A

person commits an offense if the person signs a joint affidavit

required by Section 160.042 and knows that it is false in any

material fact.

(b) An offense under this section is a misdemeanor punishable by

a fine not to exceed $500.

Added by Acts 1993, 73rd Leg., ch. 587, Sec. 32, eff. Oct. 1,

1993.

SUBCHAPTER E. DISPOSITION OF TAXES

Sec. 160.121. AMOUNT OF TAX SENT TO COMPTROLLER. (a) Except as

provided by Subsections (b) and (c), on the 10th day of each

month, each tax assessor-collector and the department shall send

the money collected from taxes imposed by this chapter to the

comptroller.

(b) A tax assessor-collector shall retain five percent of the

taxes collected by the tax assessor-collector under this chapter

as fees of office to be retained or paid into the appropriate

county fund from which salaries are paid as provided by law and

used to defray the costs of collection required under this

chapter. As a minimum amount for the fees of office collectible,

a tax assessor-collector is entitled to retain $5 for each of the

first 100 transactions processed in each fiscal year.

this chapter shall be deposited to the credit of the game, fish,

and water safety account and used by the department for the

administration of this chapter.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991. Amended by Acts 1993, 73rd Leg., ch. 679, Sec. 67,

eff. Sept. 1, 1993.

Sec. 160.122. ALLOCATION OF REVENUE. The revenue from the taxes

imposed by this chapter from a sale of a taxable boat or motor

shall be allocated to the general revenue fund.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 7.01, eff.

Oct. 1, 1991.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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