TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON MOTOR VEHICLES, TRAILERS, SEMITRAILERS, AND MOTORBOATS, AS AFFIRMED BY REFERRED ACT 19 OF 1958; AND TO SUBJECT CERTAIN USED MOTORBOATS TO A SPECIAL RATE OF TAX.

Fiscal Impact Statement Bill: SB49 Bill Subtitle: TO AMEND THE LAW CONCERNING THE SALES AND USE TAX APPLICABLE TO PURCHASES OF NEW OR USED MOTOR VEHICLES, TRAILERS, SEMITRAILERS, AND MOTORBOATS; AND TO SUBJECT CERTAIN USED MOTORBOATS TO A SPECIAL RATE OF TAX. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Sen. Boyd and Rep. Johnson Basic Change: SB49 revises the method of collection of sales and use tax on motorboats, provides a tax exemption or a reduced tax rate for certain motorboat sales, and reduces the sales and use tax rates applicable to sales of certain used motor vehicles. Sales and Use Tax on Sales of Motorboats --- Current law requires the purchaser of a new or used motorboat to register the motorboat with the Department of Finance and Administration (DFA) and obtain a certificate of number within 30 days of the date of purchase. Sales tax is collected by a business engaged in selling motorboats at the point of sale and the business must remit the taxes to DFA. SB49 requires the purchaser of a motorboat to pay sales or use tax directly to DFA instead of the seller collecti