Attention, Texas boaters: Are you thinking about getting a new boat or yacht this season? If so, here’s some information on how you’ll be taxed for your purchase. The TX sales and use tax is imposed on every retail sale of a boat that’s 115 feet in length or less, measured from the tip of the bow in a straight line to the stern. This includes sailboats, inboards, outboards and personal watercraft.
Excluded from the tax are canoes, kayaks, inflatable boats, punts or boats designed to be propelled only by a paddle or pole. Many boat motors also are taxed. For more information on boats and taxes, click on the “Other Taxes” link on the TX Comptroller’s home page.