Texas Exempts Boats and Motors Temporarily Used in the State

Jun 26th, 2019

Texas has recently passed a bill creating an exemption for boats and motors purchased for use outside of the state. The exemption applies to purchases made after September 1, 2019.

To qualify for the exemption, the boat or motor must either: (1) be removed from Texas within 10 days of purchase; (2) be out of use, docked at or placed in a boat repair facility registered with the Comptroller for repairs and modifications within 10 days of purchase, and removed from Texas within 20 days of the repairs or modifications being complete; or (3) be removed from Texas within 90 days of purchase and display an issued temporary use permit at all times until the boat or motor is removed from the state.

Temporary use permits are nonrenewable and cost $150, and taxpayers are only allowed two permits in a single calendar year. The second permit may not be issued until a month has passed since the first permit expires.