TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE OF A NEW OR USED MOTORBOAT; AND TO PROVIDE FOR THE DIRECT PAYMENT OF SALES AND USE TAX ON A MOTORBOAT SOLD BY A MOTORBOAT DEALER.

Fiscal Impact Statement Bill: SB638 Bill Subtitle: TO AMEND THE LAW CONCERNING THE COLLECTION OF SALES AND USE TAX ON THE SALE OF A NEW OR USED MOTORBOAT; AND TO PROVIDE FOR THE DIRECT PAYMENT OF SALES AND USE TAX ON A MOTORBOAT SOLD BY A MOTORBOAT DEALER. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Sen. Boyd Reps. L. Johnson and Henley Basic Change: SB638 requires the purchaser of a new or used motorboat from a motorboat dealer to pay sales and use tax directly to the Department of Finance and Administration (DFA). Under current law, the motorboat dealer is required to collect the tax from the purchaser and remit the tax to DFA. Under SB638, the purchaser will be required to pay the tax when the purchaser applies to obtain a certificate of number and title for the motorboat. The purchaser is required to apply for issuance of a certificate of number within 30 days of the purchase. A purchaser who fails to pay sales and use tax to DFA when due shall be assessed a penalty equal to 10% of the taxes due. SB638 allows a deduction in the sales and use tax due when the purchaser trades a