1-1     By:  Krusee, Seaman (Senate Sponsor - Wentworth)       H.B. No. 579
 1-2           (In the Senate - Received from the House April 26, 1999;
 1-3     April 27, 1999, read first time and referred to Committee on
 1-4     Finance; May 5, 1999, reported favorably by the following vote:
 1-5     Yeas 10, Nays 0; May 5, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the collection of taxes on sales of boats and boat
 1-9     motors.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 160.021(a), Tax Code, is amended to read
1-12     as follows:
1-13           (a)  A tax is imposed on every retail sale of a taxable boat
1-14     or motor sold in this state.  The tax is an obligation of and shall
1-15     be paid by the purchaser of the taxable boat or motor.  If the
1-16     purchaser pays the tax to the seller, the tax is an obligation of
1-17     and shall be paid by the seller.
1-18           SECTION 2.  Section 160.041, Tax Code, is amended to read as
1-19     follows:
1-20           Sec. 160.041.  COLLECTION PROCEDURE.  (a)  The department,
1-21     each agent of the department, and each tax assessor-collector shall
1-22     collect the taxes imposed by this chapter.  The department, agent
1-23     of the department, or tax assessor-collector of the county in which
1-24     an application for a Texas certificate of number or certificate of
1-25     title for a taxable boat or motor is made shall collect the taxes
1-26     imposed by this chapter on that boat or motor.
1-27           (b)  Except as provided by Subsection (d), the [The]
1-28     department, agent of the department, or the tax assessor-collector
1-29     may not accept an  application for a Texas certificate of number or
1-30     certificate of title for a taxable boat or motor from a person
1-31     unless the tax, if any, is paid.
1-32           (c)  The tax imposed by Section 160.021 is due on the 20th
1-33     working day after the date that the taxable boat or motor is
1-34     delivered to the purchaser.  The purchaser or the seller, if the
1-35     purchaser paid the tax to the seller, shall pay the tax to the
1-36     department, to an agent of the department, or to a tax
1-37     assessor-collector on or before the due date.
1-38           (d)  If a purchaser pays the tax imposed by Section 160.021
1-39     to the seller, and the seller fails to remit the tax in the time
1-40     and manner required by Subsection (c), the department, agent of the
1-41     department, or county tax assessor-collector shall accept an
1-42     application for a Texas certificate of number or certificate of
1-43     title for a taxable boat or motor from the purchaser if the
1-44     purchaser provides proof that the tax was paid to the seller.  The
1-45     comptroller shall adopt rules establishing the method of proof
1-46     required.
1-47           (e)  The tax imposed by Section 160.022 or 160.023 is due on
1-48     the 20th working day after the date that the taxable boat or motor
1-49     is brought  into this state.  The person liable for the tax shall
1-50     pay the tax to the department or to a tax assessor-collector on or
1-51     before the due date.
1-52           SECTION 3.  This Act takes effect September 1, 1999, and
1-53     applies only to the sale of a boat or boat motor on or after that
1-54     date.  The sale of a boat or boat motor before the effective date
1-55     of this Act is governed by the law in effect when the boat or boat
1-56     motor was sold, and that law is continued in effect for that
1-57     purpose.
1-58           SECTION 4.  The importance of this legislation and the
1-59     crowded condition of the calendars in both houses create an
1-60     emergency and an imperative public necessity that the
1-61     constitutional rule requiring bills to be read on three several
1-62     days in each house be suspended, and this rule is hereby suspended.
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