Is a tax cut on yachts.
As some lawmakers look high and low for money to ease cutbacks in education and human services, the House Ways and Means Committee has approved a tax break for big yachts.
The committee voted 8-3 Thursday for House Bill 2187, which Rep. John Davis, R-Houston, casts as an effort to preserve the economic activity that goes along with having big yachts purchased and kept here.
Other states — most notably Florida — have limited their yacht taxes and Davis said that means Texas is losing out on sales and service.
Davis’ bill initially would have limited the the amount of boat tax to $15,625 — the amount normally due on a $250,000 vessel — regardless of sales price. He changed that to match Florida’s $18,000 maximum.
The bill next goes to the full House, where Davis said he’s optimistic about its chances.
Voting against the bill in committee were Reps. Wayne Christian, R-Center; Trey Martinez Fischer, D-San Antonio; and Mike Villarreal, D-San Antonio.
Here’s some background on this ludicrous piece of legislation. According to the fiscal note attached to HB2187, it will cost the state $2,782,000 over the next biennium. (That works out to just over 25 teachers, at $55K per year, for the biennium.) Without any way to pay for it, of course, because tax cuts always pay for themselves. It’s a law of the universe, I believe. Anyway, if you’re in the market for a new yacht, as most of us are, be sure to wait till this new law passes so you can save yourself a few bucks. It’s the economy-boosting thing to do. A statement from the “flabbergasted” Rep. Villarreal is here. Hair Balls has more.