CHAPTER 160. TAXES ON SALES AND USE OF BOATS AND BOAT MOTORS
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;
(C) an exchange in which property is transferred but the seller
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.
(c) The tax imposed by this section is in lieu of the tax
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.
(c) The tax imposed by Section 160.021 is due on the 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.
(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.
(c) If the ownership of a taxable boat or motor is transferred
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.
(c) For a retail sale for which the seller receives full payment
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,
register the taxable boat or boat motor, and pay the boat or boat
motor tax; and
(C) includes a statement that the seller advised the purchaser
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;
(C) the amount of the down payment received at the time the boat
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.
(c) Five percent of the taxes collected by the department under
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.