Texas boat sales tax cap running out of time
AUSTIN , Texas — The Texas bill that would impose an $18,000 sales tax cap on the purchase of a yacht sailed through the Ways and Means Committee April 28 and could soon be headed to a House vote.
However, according to a report from the Houston Chronicle, time is running out for the bill to have a chance at passing the House and Senate and reaching the governor’s desk. Rachel Deason, chief of staff for the bill’s sponsor, John Davis, R-Houston, said May 12 is the deadline for bills to be heard on the House floor, and no date for HB 2187 has been set.
Davis’ bill originally would have capped the sales tax on a boat at $15,625 — the amount normally due on a $250,000 vessel — regardless of sales price. He changed that to match Florida’s $18,000 maximum, the amount normally due on a $288,000 yacht under Texas’ existing rate.
“Since this law has been in effect, Texas has seen their large boat purchasers head to Florida to take advantage of this tax break,” Davis said in a prepared statement. “With those boat sales went fuel sales, retail sales, mooring fees, service fees, restaurant sales, and every other money-generating sale associated with a large boat purchase.”
To read the complete article, click here: Yacht owners want a break
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