Texas considering cap on yacht tax

The Houston Chronicle has reported that Texas state legislators are floating the idea of a tax break for big yachts, with backers claiming it is needed to keep boat sales, repairs and other economic activity in the state.

According to the Chronicle, identical measures which would cap the tax paid on a boat per retail sale are being carried by Republican members of both the state House and Senate.

The Chronicle reported:

"As filed, the legislation would cap the amount of boat tax at $15,625 per retail sale, the amount typically paid for a $250,000 yacht. Taylor has as substitute to change that to $25,000. The subcommittee held the bill while it awaits a new fiscal note on the change.

"Backers emphasized, as they did in 2011, Florida’s decision to cap its sales and use tax at $18,000. They said that has prompted buyers to purchase and keep their boats in Florida.

"The bill 'is not about giving tax breaks to the rich. It is all about jobs and protecting our Texas economy,' Taylor said."

(Source: Google News: The Houston Chronicle. View the original story here.)