HBA-JRA, RAR H.B. 579 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 579
By: Krusee
Ways & Means
6/24/1999
Enrolled



BACKGROUND AND PURPOSE 

Currently, individuals who purchase boats are responsible for paying the
sales tax on the boat or the boat motor.  Some dealers, as a courtesy, will
collect the tax and forward the funds to the Comptroller of Public Accounts
(comptroller).  The boat owner can then apply to the Texas Parks and
Wildlife Department (department) for the title.  Prior to the 76th
Legislature, if for some reason, such as bankruptcy, the seller failed to
remit the tax to the comptroller, the purchaser could not obtain the title
unless the purchaser paid the tax again.  H.B. 579 requires the department
to issue the title upon presentation of satisfactory proof of payment, as
established by the comptroller.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Comptroller of Public Accounts of
the State of Texas in SECTION 2 (Section 164.041, Tax Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 160.021(a), Tax Code, to provide that the retail
sales tax on the sale of a boat or a boat motor is an obligation of the
seller if the purchaser pays the tax to the seller, and requires the seller
to pay the tax in that event.  

SECTION 2.  Amends Section 160.41, Tax Code, to require the Parks and
Wildlife Department (department), agent of the department, or county tax
assessor-collector, if the seller fails to remit the tax in the prescribed
manner, to accept an application for a Texas certificate number or
certificate of title for a taxable boat or motor from the purchaser if the
purchaser provides proof of payment of the tax to the seller.  Requires the
Comptroller of Public Accounts of the State of Texas to adopt rules
establishing the method of proof required.  Provides an exception and makes
a conforming change.  Creates Subsection (e) from existing text.  

SECTION 3.  Effective date: September 1, 1999.
                       Makes application of this Act prospective.

SECTION 4.  Emergency clause.