By Krusee, Seaman                                      H.B. No. 579
         76R813 KLA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the collection of taxes on sales of boats and boat
 1-3     motors.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 160.021(a), Tax Code, is amended to read
 1-6     as follows:
 1-7           (a)  A tax is imposed on every retail sale of a taxable boat
 1-8     or motor sold in this state.  The tax is an obligation of and shall
 1-9     be paid by the purchaser of the taxable boat or motor.  If the
1-10     purchaser pays the tax to the seller, the tax is an obligation of
1-11     and shall be paid by the seller.
1-12           SECTION 2.  Section 160.041, Tax Code, is amended to read as
1-13     follows:
1-14           Sec. 160.041.  COLLECTION PROCEDURE.  (a)  The department,
1-15     each agent of the department, and each tax assessor-collector shall
1-16     collect the taxes imposed by this chapter.  The department, agent
1-17     of the department, or tax assessor-collector of the county in which
1-18     an application for a Texas certificate of number or certificate of
1-19     title for a taxable boat or motor is made shall collect the taxes
1-20     imposed by this chapter on that boat or motor.
1-21           (b)  Except as provided by Subsection (d), the [The]
1-22     department, agent of the department, or the tax assessor-collector
1-23     may not accept an  application for a Texas certificate of number or
1-24     certificate of title for a taxable boat or motor from a person
 2-1     unless the tax, if any, is paid.
 2-2           (c)  The tax imposed by Section 160.021 is due on the 20th
 2-3     working day after the date that the taxable boat or motor is
 2-4     delivered to the purchaser.  The purchaser or the seller, if the
 2-5     purchaser paid the tax to the seller, shall pay the tax to the
 2-6     department, to an agent of the department, or to a tax
 2-7     assessor-collector on or before the due date.
 2-8           (d)  If a purchaser pays the tax imposed by Section 160.021
 2-9     to the seller, and the seller fails to remit the tax in the time
2-10     and manner required by Subsection (c), the department, agent of the
2-11     department, or county tax assessor-collector shall accept an
2-12     application for a Texas certificate of number or certificate of
2-13     title for a taxable boat or motor from the purchaser if the
2-14     purchaser provides proof that the tax was paid to the seller.  The
2-15     comptroller shall adopt rules establishing the method of proof
2-16     required.
2-17           (e)  The tax imposed by Section 160.022 or 160.023 is due on
2-18     the 20th working day after the date that the taxable boat or motor
2-19     is brought  into this state.  The person liable for the tax shall
2-20     pay the tax to the department or to a tax assessor-collector on or
2-21     before the due date.
2-22           SECTION 3.  This Act takes effect September 1, 1999, and
2-23     applies only to the sale of a boat or boat motor on or after that
2-24     date.  The sale of a boat or boat motor before the effective date
2-25     of this Act is governed by the law in effect when the boat or boat
2-26     motor was sold, and that law is continued in effect for that
2-27     purpose.
 3-1           SECTION 4.  The importance of this legislation and the
 3-2     crowded condition of the calendars in both houses create an
 3-3     emergency and an imperative public necessity that the
 3-4     constitutional rule requiring bills to be read on three several
 3-5     days in each house be suspended, and this rule is hereby suspended.