Basics to Boat Transactions

rev 02/2020

Basics to Boat Transactions

Purpose: The information presented here is intended to aid in processing basic boat/outboard motor transactions and to provide the user with information to help answer questions from the general public. This information should be used in conjunction with the Forms and Supporting Document Requirements for Specific Transactions matrices. (Information pertaining to the use and breakdown of these matrices is available within this training aid.)

Answers to Common Questions

A list of commonly asked questions and their corresponding answers.

BOAT/OUTBOARD MOTOR TITLING/REGISTRATION ISSUES

Q: What is the difference between a title and registration?

A: A title provides documented proof of ownership for a boat/outboard motor. Registration allows the boat/outboard motor to be legally docked, stored, moored and/or operated on the public waters of this state.

Q: What is the difference between documentation from the United States Coast Guard (USCG) and titling through TPWD?

A: Documentation with the USCG is the federal equivalent to a title issued by TPWD. A vessel cannot be both titled with TPWD and documented through the USCG. Commercial fishing vessels are required to maintain USCG documentation. USCG documentation is useful to owners who travel the coastline and cross into various state or international waters. In order to title a USCG documented vessel, a Letter of Deletion is required from the USCG confirming the vessel’s documentation is no longer in effect.

Q: Why does TPWD require registration of vessels which are documented through the USCG?

A: To ensure payment of the required sales/use tax is made at the time of purchase and to ensure that USCG documentation is kept current. USCG documentation is valid for 1-5 years and must be renewed within 30 days of expiration by the owner.

Q: Can a customer use their boat in Texas if it is registered in another state?

A: Yes, if the boat is registered in the customer’s name, they can operate the vessel for up to 90 consecutive days with current out-of-state registration. However, Use Tax is due upon arrival in Texas. In lieu of paying Use Tax, owners that qualify for the applicable tax exemption can opt to obtain a Temporary Use Tax Permit.

Q: What is a Temporary Use Tax Permit?

A: A Temporary Use Tax Permit allows the owner of a taxable boat or outboard motor who qualifies for a specific tax exemption to have their boat or outboard motor in Texas for not more than 90 days without paying sales/use tax. (This permit does not apply to registration and operation of the vessel on public waters.)

Q: Does the Temporary Use Tax Permit allow the owner to legally operate their boat in Texas?

A: The permit does allow the qualifying owner to have their boat or outboard motor in Texas up to 90 days without having to pay sales/use tax.

The permit does not allow the owner to operate the boat in Texas public waters. In order to operate the boat the owner must have one of the following:

• • A current Certificate of Number issued by another state (i.e. current registration)
• • Current USCG documentation
• • A valid temporary placard provided to a purchaser by a Texas marine dealer
• • In the event of an individual sale – Current Texas registration (the prior owner must provide the new owner the certificate of number identification card in order to legally operate the boat).

Q: What documents do customers need to have in order to register their boat or title their boat or outboard motor?

A: In general, a bill of sale and a signed title. However, there are over 200 different situations that arise where boats and outboard motor titles are affected. In order to determine what documents are needed for each specific situation, please refer to the TPWD Forms and Supporting Document Requirements for Specific Transactions matrices which can be found at: https://tpwd.texas.gov/fishboat/boat/owner/titles_and_registration/

You will need to answer which categories the vessel or motor in question fits into:

New – Brand New or Newly Built

Acquired as New from Texas Dealer/Manufacturer or New Homemade

Acquired as New Outside of Texas from Dealer/Manufacturer or New Homemade

Used – TPWD Record Exists – Transfer of Boat/Outboard Motor With Existing Title and/or Registration Through TPWD

Vessels and Outboard Motors Titled – TPWD Record Exists

Vessels Registered but not Titled – TPWD Record Exists

TPWD Record Exists – Maintenance of Existing Record; Renew Registration, Replacement(s), Change(s), and Correction(s)

Vessels and Outboard Motors Titled

Vessels Registered But Not Titled

Used – Not Currently Titled and/or Registered Through TPWD

No Record Exists – Original Owner

No Record Exists – Acquired from Previous Owner

Record Exists Outside of Texas – Original Owner

Record Exists Outside of Texas – Acquired from Previous Owner

Registration of USCG Documented Vessels

New Registration

Renewal of Registration

Transfer of Registration-due to change in ownership with registration current and greater than 90 days from expiration

Transfer of Registration-due to change in ownership with registration within 90 days of expiration or registration is expired

Sold Under Statutory Lien

Self Storage Lien

Storage Lien

Garageman/Mechanic/Towing Lien

Sales Tax Only Payments for Vessels or Outboard Motors

Q: What is acceptable as a bill of sale when purchasing a boat or outboard motor?

A: Bill of Sale or Invoice (signed by the seller(s)) – is required for every transfer of ownership.

One of the following is acceptable to meet the bill of sale or invoice requirement:

(1) Form PWD 143/144 application – tax affidavit must be completed and signed by the seller(s), OR

(2) Handwritten Receipt or Sales Invoice – must contain date of sale, sales price (DO NOT include sales price of trailer), description of vessel and/or outboard motor (make, TX or serial number and year built), purchaser(s) name, and seller(s) signature, OR

(3) Back of original brown Texas title – seller(s) must sign and list purchaser(s) name and address, sales price (DO NOT include sales price of trailer), and date of sale. If the sale includes more than one asset (for example, a boat and an outboard motor) the sales price of each asset should be listed separately on the back of each respective title.

Q: How long is my registration valid for?

A: Two years

Q: What is a certificate of number card?

A: A certificate of number card is an identification card which must be carried on the boat when in use. This card lists the boat owner, boat description, expiration date of registration, and whether the boat is titled or documented through the United State Coast Guard. 

Q: Why does the customer have to carry the certificate of number card?

A: It is a state and federal legal requirement to be able to identify the owner of the vessel and match the description on the card to the vessel being operated. Failure to carry or present this card can result in the issuance of a citation.

Q: Can an owner have more than one certificate of number card?

A: Yes, there is no limit on the number of cards that an owner may purchase. The information on all cards in use must reflect current information.

Q: When is a pencil tracing or photograph of the serial number for the vessel or outboard motor required?

A: The following situations require verification (pencil tracing or photograph) of boat/outboard motor serial numbers by completing the PWD 504 form:

• • When the boat/motor is coming from out-of-state or another country (registered/titled in another state/country).
• • When the boat was previously documented with the USCG and is now being titled.
• • When the boat/motor serial numbers are incorrect on the ownership document (title/registration).
• • When the boat/motor is used and has never been titled or registered.
• • When the serial number does not conform to Coast Guard regulation formatting.

IDENTIFICATION/SIGNATURE ISSUES

Q: Do I need to check a valid ID for everyone who comes in to get a transaction processed?

A: Yes. Valid photo ID includes current state issued driver’s license, current state issued ID card, current military ID card, current passport or other current government issued ID.

Q: Why?

A: To prevent a boat or outboard motor from being transferred without the owner’s knowledge and permission. In short, to prevent fraud and theft.

Q: Why is the owner’s driver’s license and date of birth, or company EIN, now required?

A: The United States Code of Federal Regulations, Title 33 Navigation & Navigable Waters, Section 174 governs the requirements for state numbering programs, and revisions to these regulations now require the Texas Boat Titling & Registration Program to collect and record new information for certain transactions.

The purpose of the revisions is to ensure:

• All state numbering programs are aligned to collect and report the same information.

• Standardization of information provided in the federal Vessel Information System (VIS), which is used by all states to verify asset and owner information, particularly for assets moving between states.

• Standardization and improved reporting for the Boating Accident Report Database (BARD). This database contains data on recreational boating accidents, which are reported to local district offices of the United States Coast Guard (USCG). The U.S. Coast Guard (USCG) office of boating safety is dedicated to reducing loss of life, injuries and property damage that occur on U.S. waterways by improving the knowledge, skills and abilities of recreational boaters. The data collected is used for this purpose.

Q: If the owner doesn’t have a driver’s license, what other forms of ID are acceptable?

A: Any of the following are acceptable in lieu of a driver’s license:

• US State Issued Identification (ID) Card

• US Military ID Card

• US Passport

• US Citizenship & Immigration ID Card

• US Department of Homeland Security ID Card

• US Department of State ID Card

• Mexico Driver’s License

• Foreign Passport

• Foreign Military ID Card

Q: Are Owner Identifiers public information?

A: No. If an open records request is received by TPWD, the information will be redacted prior to fulfilling the request.

Q: What is the difference between Power of Attorney and Letter of Authorization and what does each do?

A: A Power of Attorney allows the owner(s) to designate another individual to act on their behalf in providing documentation and signing applications and related forms in place of the owner(s).

A Letter of Authorization should be used when the owner(s) of record wants to send someone else to bring in their paperwork. The letter of authorization does not allow the person to sign documents in place of the owner of record. In other words, we want to know that the person coming in with paperwork has the permission of the owner before we process transactions, even if they are signed by the owner of record.

Q: Can a husband or wife renew the registration, or obtain a replacement certificate of number card or decals for a boat on which their spouse is listed as the sole owner of record?

A: Yes, but only if they can provide valid identification showing their last name and address is the same as that of the owner of record. If they present a renewal notice, no signature is needed; if not they can either print their name and sign the transaction receipt or complete and sign the PWD 143M form.

Q: Can a husband or wife change the address for a boat on which their spouse is listed as the sole owner of record?

A: No, they must have either; 1) the green renewal notice with the address change completed by the owner of record (for registration renewal); 2) a 143M with the address change completed and signed by the owner of record; 3) a signed letter of authorization (PWD 581) from the owner of record allowing them to process the requested transaction and/or change the address, (or verification by telephone contact with the owner can be obtained by staff at the time the transaction is processed), or; 4) the owner of record must come in and sign the applicable forms.

Q: Can a husband or wife sign the request for a replacement title if they aren’t listed as the owner?

A: No, the owner of record must sign the request. The spouse may bring in the request without having to supply a letter of authorization but only if they can provide valid identification showing their last name and address is the same as that of the owner of record and the request must be signed by the owner of record.

Q: Can a husband or wife bring in the request for a replacement title or transfer of ownership transaction if they aren’t listed as the owner?

A: Yes. The spouse may bring in the request without having to supply a letter of authorization but only if they can provide valid identification showing their last name and address is the same as that of the owner of record and the request must be signed by the owner of record.

Q: Do all co-owners have to sign applications, bills of sale, and supporting documents to sell or transfer ownership?

A: Yes

Q: Do all co-owners have to be present when the transaction is requested?

A: No

Q: If there are co-owners listed, do both have to sign the application for a replacement title?

A: No, only one signature is required. The replacement title will be mailed to the address recorded for the owner listed first on the asset record (which is designated as the primary mailing address but has no meaning regarding who has controlling interest in the asset).

Q: Can the co-owner request a replacement title and change the address of the person listed as the primary owner?

A: Yes

Q: Can a co-owner change which owner is listed as the primary owner for mailing purposes?

A: Yes

CONTACT INFORMATION

Q: If a customer wants to call TPWD Headquarters directly, what is the best phone number to give them?

A: Give them the toll-free Boat Information Help Line number, 1-800-262-8755. Staff is available from 8:00 a.m.–5:00 p.m. each workday to answer any questions or research any problems that the customer may encounter.

Q: Where can a customer get their boat registration/title and outboard motor title processed?

A: The forms must be completed and submitted together with any required application fees, supporting documents, and any boat/outboard motor taxes due to:

• • Texas Parks and Wildlife Headquarters in Austin, TX
• • Any of the 28 Texas Parks and Wildlife Law Enforcement field offices (https://tpwd.texas.gov/fishboat/boat/owner/office_locations/)
• • Any participating Tax Assessor-Collector Office (https://tpwd.texas.gov/fishboat/boat/owner/office_locations/)

Q: Where can the customer get their boat trailer titled and registered?

A: Boat trailer titling and registration is handled through the Department of Motor Vehicles and is processed through your local county tax assessor-collector office.

REFUND REQUESTS

Q: If a customer requests a refund for fees paid, what should I tell them?

A: Typically, if the service has been provided, no refunds will be issued. However, the customer may send a written request with any supporting documentation and applicable title, registration card and/or decals to TPWD HQ for review and consideration. This review does not guarantee that a refund will be issued.

Refund requests should be mailed to: TPWD, Attn: Boat Section, 4200 Smith School Road, Austin, Texas 78744.

Exemptions – Quick Reference List Exemption List 1 – Exemption from Titling

For Vessels:

Documented in another state or from another country and not operated in Texas > 90 days

Canoes, kayaks, punts, rowboats, or rubber rafts not used with a motor

Other vessels less than 14′ and used without a motor

USCG Documented-31.055 of the Water Safety Act exempts documented vessels from the requirement of titling

Ship’s Lifeboat

For Motors:

From another state or country and not operated in Texas > 90 days

Exemption List 2 – Exemption from Vessel Registration

Documented in another state or from another country and not operated in Texas > 90 days

Canoes, kayaks, punts, rowboats, or rubber rafts not used with a motor

Other vessels less than 14′ and used without a motor

USCG Documented vessels which exceed 115′ in length, or are commercial tugboats, or are pilot or crew boats transporting freight, supplies, or personnel to or from cargo ships, freighters, or offshore oil infrastructure. Shrimp boats and commercial fishing boats are not exempt.

Used only at a tournament, competition or exhibition sanctioned by governmental entity

Vessel owned by the US government, a state, counties, municipalities, quasi-governmental agency

Vessel Not In Use on Texas Public Waters

Ship’s Lifeboat

Exemption List 3 – Exemption from Boat Sales/Use Tax (Tax Code, Chapter 160 – 6.25% tax rate)

Government Entity such as State, Federal, Political Subdivisions, volunteer fire department, or emergency services

Acquired as Gift

Vessel or outboard motor purchased in Texas or first used in Texas prior to January 1, 2000.

Vessel or outboard motor titled for resale purposes by a licensed Texas Marine Dealer, insurance company, lien holder, or pawnshop.

For outboard motor titling, if sales tax was paid with a vessel titling transaction for the entire value of boat and motor. (practical exemption) Vessels and outboard motors purchased in Texas on or after 9/1/19 with a combined sales price greater than $300,000.00 are not eligible to combine the sales price and pay it all on the vessel.

Sales tax for vessels and outboard motors purchased in Texas on or after 9/1/19 is capped at $18,750.00 per asset ($300,000.00 equivalent sales price). Tax must be reported and paid separately for each individual vessel or outboard motor (vessel and outboard motor sales price may not be combined).

A new resident of this state who brings into this state for use in this state a taxable boat or motor that has been purchased and owned by the new resident in any other state or foreign country is charged $15 for each taxable boat or motor.

Vessel or outboard motor is used temporarily in this state & the owner has obtained a Temporary Use Tax Permit.

Vessel or outboard motor is sold in Texas for use in another state or nation and is either removed or placed in a registered boat repair facility within 10 days. If placed for repair, it is removed within 20 days of repair completion.

Exemption List 4 – Exempt from Boat Sales/Use Tax (Tax Code, Chapter 160 – 6.25% tax rate) The following vessels are not subject to Tax Code, Chapter 160, BUT ARE SUBJECT to Limited Sales, Excise & Use Taxes (Tax Code, Chapter 151 – 6.25% + local tax rates up to 2%)

This tax is collected by either permitted sellers or sent directly to the Comptroller of Public Accounts.

Canoes, Kayaks, rowboats, rafts, punts, or other vessel not designed to be used with a motor (160.001)

Vessels greater than 115 feet in length.

Vessels greater than 65 feet in length when purchased prior to 9/1/19.

Exemption List 5 – Exempt from Dealer Licensing Requirements (Dealer, Distributor, and Manufacturer) Parks & Wildlife Code 31.0413

The sale of a canoe, kayak, punt, rowboat, rubber raft, paddleboat, other vessel that is less than 12 feet in length and has a horsepower rating of five horsepower or less or to the sale of an outboard motor with a manufacturer’s rating of five horsepower or less.