Skip to main content

Texas weighs capping sales tax on yachts

Time is running out for a bill that would cap the sales tax on yachts purchased in Texas.

Thursday is the deadline for bills to be heard on the House floor, and no date for HB 2187 has been set, the Houston Chronicle newspaper reported.

Rep. John Davis sponsored the bill, which would impose an $18,000 sales tax cap on the purchase of a yacht in Texas. The bill sailed through the Ways and Means Committee on April 28.

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, the newspaper reported.

Clayton Reaser said he's enjoying the $1 million yacht he bought last year in Seabrook and he plans to purchase a larger yacht in the $3.5-million range. But this time, he said, he'll be heading to Florida to make his purchase unless Texas passes the sales-tax cap bill.

"I'm definitely going to buy my boat in Florida if this legislation doesn't pass," he told the newspaper. "I would love to give my money back to Texas. My next boat will have Florida on the back of it instead of Texas if this thing doesn't pass."

Rep. Mike Villarreal said the measure is "crazy," given the state's two-year budget shortfall of $15 billion to $27 billion.

"We're helping yacht owners while we are cutting our public schools by 21 percent and nursing homes by 33 percent," Villarreal told the Chronicle. "We're helping yacht owners ... while we're eliminating all scholarships for college freshmen in 2012-13."

Click here for the full article.

Related

1_DEALER.OUTLOOK

Alleged Tournament Cheats Face Possible Legal Action

Approximately 8 pounds of lead was found stuffed inside fish entered into the contest by two men from Pennsylvania and an Ohio.

1_BOATHOUSE

The Boat House Group Announces Merger

The transaction will add two Wisconsin dealerships and several sales, storage and service locations to the group’s portfolio of properties.

1_GLBBS

GLBBS Breaks Ground on Tech Center

The Michigan-based marine trades school will commence construction of a 10,000-square-foot training facility in the second quarter of 2023.

1_AVIKUS

Avikus Debuts Autonomous Navigation

The company will demonstrate ‘Neuboat’, an autonomous phase-2 navigation solution for recreational boats at this year’s FLIBS.

1_IAN_ROUNDUP

Scope of Ian’s Devastation Emerges

Southwest Florida’s marine industry businesses are ensuring the welfare of their people well before the cleanup even begins.

1_MERCURY.MARINE

Mercury Marine Receives Environmental Award

The company was recognized in the large business sustainability category by Wisconsin Manufacturers and Commerce.