TAX CODE
CHAPTER 160. TAXES ON SALES AND USE OF BOATS AND BOAT MOTORS
SUBCHAPTER A. GENERAL PROVISIONS
§ 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, § 7.01, eff. Oct.
1, 1991. Amended by Acts 1993, 73rd Leg., ch. 587, § 30, eff.
Oct. 1, 1993; Acts 1993, 73rd Leg., ch. 718, § 5, eff. Sept. 1,
1993; Acts 1995, 74th Leg., ch. 76, § 17.01(50), eff. Sept. 1,
1995.
§ 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, § 7.01, eff. Oct.
1, 1991.
§ 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, § 7.01, eff. Oct.
1, 1991. Amended by Acts 1993, 73rd Leg., ch. 718, § 6, eff.
Sept. 1, 1993.
SUBCHAPTER B. IMPOSITION OF TAX
§ 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, § 7.01, eff. Oct.
1, 1991. Amended by Acts 1999, 76th Leg., ch. 243, § 1, eff.
Sept. 1, 1999.
§ 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, § 7.01, eff. Oct.
1, 1991.
§ 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, § 7.01, eff. Oct.
1, 1991.
§ 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, § 7.01, eff. Oct.
1, 1991.
§ 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, § 1, eff. May 21, 2001.
§ 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, § 7.01, eff. Oct.
1, 1991.
SUBCHAPTER C. COLLECTION AND ENFORCEMENT OF TAXES
§ 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, § 7.01, eff. Oct.
1, 1991. Amended by Acts 1993, 73rd Leg., ch. 718, § 7, eff.
Sept. 1, 1993; Acts 1999, 76th Leg., ch. 243, § 2, eff. Sept. 1,
1999.
§ 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, § 7.01, eff. Oct.
1, 1991. Amended by Acts 1993, 73rd Leg., ch. 718, § 8, eff.
Sept. 1, 1993.
§ 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, § 7.01, eff. Oct.
1, 1991.
§ 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, § 7.01, eff. Oct.
1, 1991. Amended by Acts 1993, 73rd Leg., ch. 718, § 9, eff.
Sept. 1, 1993.
§ 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, § 7.01, eff. Oct.
1, 1991.
§ 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, § 7.01, eff. Oct.
1, 1991. Amended by Acts 1993, 73rd Leg., ch. 587, § 31, eff.
Oct. 1, 1993.
SUBCHAPTER D. PENALTIES
§ 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, § 7.01, eff. Oct.
1, 1991.
§ 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, § 32, eff. Oct. 1, 1993.
SUBCHAPTER E. DISPOSITION OF TAXES
§ 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, § 7.01, eff. Oct.
1, 1991. Amended by Acts 1993, 73rd Leg., ch. 679, § 67, eff.
Sept. 1, 1993.
§ 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, § 7.01, eff. Oct.
1, 1991.
