Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter EE - BOAT AND BOAT MOTOR SALES AND USE TAX › Section 3.741 - Imposition and Collection of Tax

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Definitions. The following words and terms, when used in this section, shall
				  have the following meanings, unless the context clearly indicates otherwise.
(1) Accessories--Nonessential tangible
				  personal property attached to or sold with a vessel for the convenience or
				  comfort of the operator or passengers. The term "accessories" includes, but is
				  not limited to, radios, mirrors, transom-mounted ladders, electric trolling
				  motors, water skis, tow ropes, and depth finders. The term does not include a
				  boat trailer.
(2) Agent of the
				  Department--A dealer who is authorized by the Department under Parks and
				  Wildlife Code, §
											31.006
				  (Appointment of Authorized Agent), to collect taxes and fees and issue
				  certificates of number for taxable boats and outboard motors sold by that
				  dealer in Texas.
(3) Application
				  for Certificate of Title and/or Registration--Form PWD 143 (boats) or PWD 144
				  (outboard motors), an electronic equivalent, or a successor form used to apply
				  for a certificate of title and/or registration for a taxable boat or outboard
				  motor and/or to pay any sales or use tax due on the sale or use of a taxable
				  boat or outboard motor in Texas. The Applications for Certificate of Title
				  and/or Registration are available at
https://tpwd.texas.gov/fishboat/boat/forms/
.
(4) Dealer--A person who holds a license
				  issued by the Department to engage in the business of buying, selling, selling
				  on consignment, displaying for sale, or exchanging at least five taxable boats
				  or outboard motors in Texas during a calendar year at an established or
				  permanent place of business in Texas.
(5) Department--The Texas Parks and Wildlife
				  Department.
(6) Distributor--A
				  person who holds a license issued by the Department to engage in the business
				  of selling, offering for sale, or processing for distribution new taxable boats
				  or outboard motors to dealers in Texas.
(7) Federally documented vessel--A vessel of
				  five net tons or more, operated on United States navigable waters that has been
				  issued a valid marine certificate of documentation on file with the United
				  States Coast Guard National Vessel Documentation Center.
(8) Manufacturer--A person who holds a
				  license issued by the Department to engage in the business of manufacturing new
				  and unused taxable boats and outboard motors for the purpose of sale or
				  trade.
(9) Participating county tax
				  assessor-collector--A county tax assessor-collector in Texas that has an
				  agreement with the Department to title and/or register taxable boats or
				  outboard motors in Texas.
(10)
				  Registered repair facility--A person engaged in the business of repairing,
				  remodeling, maintaining, or restoring taxable boats or outboard motors that
				  holds a current Texas sales and use tax permit issued under Tax Code, Chapter
				  151 (Limited Sales, Excise, and Use Tax).
(11) Retail sale--An installment or credit
				  sale of a taxable boat or outboard motor, an exchange of a taxable boat or
				  outboard motor for property or money, or an exchange in which a taxable boat or
				  outboard motor is transferred but the seller retains title as security for
				  payment of the purchase price. The term does not include a sale in which the
				  dealer, distributor, or manufacturer acquires the taxable boat or outboard
				  motor for the exclusive purpose of resale. Dealers, distributors, and
				  manufacturers are the only persons who may acquire a taxable boat or outboard
				  motor for resale.
(12) Taxable
				  boat--A vessel not more than 115 feet in length, measured from the tip of the
				  bow in a straight line to the stern, other than a canoe, kayak, rowboat, raft,
				  punt, or other watercraft designed to be propelled only by paddle, oar, or
				  pole. The term includes federally documented vessels, sailboats, personal
				  watercraft, and boats designed to accommodate an outboard motor. The term does
				  not include seaplanes. Seaplanes, and canoes, kayaks, rowboats, rafts, punts,
				  or other watercraft designed to be propelled only by paddle, oar, or pole, are
				  not "taxable boats" under Tax Code, Chapter 160 (Taxes On Sales And Use Of
				  Boats And Boat Motors), but are subject to tax under Tax Code, Chapter 151.
				  (Limited Sales, Excise and Use Tax).
(13) Outboard motor--Any self-contained
				  internal combustion propulsion system of any horsepower, excluding fuel supply,
				  used to propel a vessel that is detachable as a unit from the vessel. The term
				  does not include electric boat motors.
(14) Temporary use permit--A non-renewable,
				  non-transferable permit issued by the Department, an agent of the Department,
				  or a participating county tax assessor-collector authorizing the temporary
				  tax-free use of a taxable boat or outboard motor within the territorial
				  boundaries of Texas for not more than 90 consecutive days from the date of
				  issue. Only two temporary use permits may be issued for the same taxable boat
				  or outboard motor within a calendar year. The second temporary use permit
				  cannot be issued until 30 days after the date the first permit expires. The
				  nonrefundable fee for the permit is $150 per taxable boat or outboard
				  motor.
(15) Territorial boundaries
				  of Texas--All territory within the exterior borders of Texas. The offshore
				  border of Texas extends nine nautical miles from the coastline of
				  Texas.
(16) Total
				  consideration--The amount paid or to be paid for a taxable boat or outboard
				  motor, including all accessories attached thereto at the time of the sale. The
				  amount includes payments by the purchaser for the costs of material, labor or
				  service, interest paid, loss, or any other expense, transportation before the
				  sale, any manufacturer's or importer's excise tax imposed by the United States
				  government, and any dealer's vessel and outboard motor inventory property tax
				  imposed on the dealer and passed through to the purchaser. The amount also
				  includes anything of monetary value received by the seller, such as cash or the
				  equivalent; a book entry reflecting cash received or paid; the forgiveness or
				  assumption of debt; book entries reflecting accounts receivable or accounts
				  payable for an item; the performance of a service; or real or tangible personal
				  property. The amount does not include any separately stated discount, finance
				  or interest charges, documentary charges, transportation charges after the
				  sale, or the value of another taxable boat or outboard motor taken by the
				  seller as all or part of the consideration for the sale of the taxable boat or
				  outboard motor.
(17) Use--Any
				  storage or other exercise of rights of ownership in Texas by any person
				  excluding:
(A) the storage, display, or
				  holding of a taxable boat or outboard motor exclusively for sale by a dealer,
				  distributor, or manufacturer; or
(B) troubleshooting or testing of a taxable
				  boat or outboard motor being repaired, remodeled, maintained, or restored by a
				  registered repair facility under subsection (g)(1) of this section.
(18) Vessel--Any watercraft, other
				  than a seaplane on water, used or capable of being used for transportation on
				  water. The definition includes a ship, barge, taxable boat, yacht, or any
				  watercraft designed to be propelled by paddle, oar or pole.