Brief ⁽¹⁾

HB 2574 would provide for proration of the taxable value of boats which are acquired or sold between January 1 and September 1 of any taxable year. Under current law, responsibility for taxes on the entire value of the boat is with the party who owns the boat on January 1 of a given year. Under the bill, the following formulas would be used to establish a prorated share of the taxable value for parties selling and acquiring a boat between January 1 and September 1.

The bill would require the boat owner to notify the county appraiser within 30 days of the sale or acquisition. After receiving notice of the sale or acquisition, the county appraiser would compute the prorated value of the boat and send out a notification or revised notification of value to the taxpayer.

Under the bill, boats that are acquired after September 1 of a given year would not be subject to assessment and taxation for that year.

The bill would apply to all taxable years beginning with tax year 2001.

Background

The House Committee held a hearing on HB 2574, at which time Representative Huebert testified in favor of the bill.

The Department of Revenue reports that passage of HB 2574 would not result in a fiscal impact to the state or local property tax base.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi