HBA-RAR H.B. 579 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 579 By: Krusee Ways & Means 3/28/1999 Introduced 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. If for some reason, such as bankruptcy, the seller fails to remit the tax to the comptroller, the purchaser cannot obtain the title unless the purchaser pays 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.