HB 1647 -- PROPERTY TAX CLASSIFICATION ON CERTAIN WATERCRAFT

SPONSOR:  Cooper

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 9 to 1.

For property tax purposes, this bill changes the classification
from personal property to residential property of any watercraft
that has bath and toilet facilities, a sleeping area, and kitchen
facilities and is eligible for the home mortgage interest
deduction on the taxpayer's federal income tax return.  The
watercraft must be registered under Chapter 306, RSMo, and be the
principal or temporary place of residence of the taxpayer.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2011,
FY 2012, and FY 2013.  Estimated Cost on Other State Funds of $0
in FY 2011, Unknown in FY 2012, and Unknown in FY 2013.

PROPONENTS:  Supporters say that the state enforced the current
laws on boat registrations three years ago, particularly for
property tax.  The bill will stop some of the migration of boat
registrations to other states where taxes are substantially lower
and would increase property tax collections.  Boats are currently
taxed as personal property at 33% of their assessed value instead
of 19% of the assessed value as residential real property.  Six
out of eight of Missouri's neighboring states don't have a
personal property tax.  Kansas and Oklahoma assess boats at 30%.
Missouri is losing sales on boats because of the rate of personal
property tax imposed yearly.  The marine industry is also
struggling in this down economy.  If the State Water Patrol stops
an unregistered boat, there is a $100 fine.  Many boat owners
ignore registration requirements and would rather risk being
ticketed.

Testifying for the bill were Representative Cooper; Dave Bigge,
Marine Max and Marine Dealers Association; and Mike Atkinson,
Lake of the Ozarks Marine Dealers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:11 pm