34 Tex. Admin. Code § 3.320 - Texas Emissions Reduction Plan Surcharge; Off-Road, Heavy-Duty Diesel Equipment
(a) Definitions.
The following words and terms, when used in this section, shall have the
following meanings, unless the context clearly indicates otherwise.
(1) Off-road, heavy-duty diesel
equipment--Diesel-powered equipment of 50 horsepower or greater, other than
motor vehicles and equipment used directly in oil and gas exploration and
production at an oil or gas well site. See §
3.96 of this title (relating to
Imposition and Collection of a Surcharge on Certain Diesel Powered Motor
Vehicles) for information about the imposition of the surcharge on motor
vehicles. Off-road, heavy-duty diesel equipment includes accessories and
attachments sold with the equipment. Off-road, heavy-duty diesel equipment
includes, but is not limited to, the following diesel-powered equipment:
(A) backhoes;
(B) bore equipment and drilling rigs, except
drilling rigs used to drill oil and gas wells;
(C) bulldozers;
(D) compactors (plate compactors,
etc.);
(E) cranes;
(F) crushing and processing equipment (rock
and gravel crushers, etc.);
(G)
dumpsters and tenders;
(H)
excavators;
(I) forklifts (rough
terrain forklifts, etc.);
(J)
graders;
(K) light plants
(generators) and signal boards;
(L)
loaders;
(M) mining
equipment;
(N) mixers (cement
mixers, mortar mixers, etc.);
(O)
off-highway vehicles and other moveable specialized equipment (equipment, such
as a motorized crane, that does not meet the definition of a motor vehicle
because it is designed to perform a specialized function rather than designed
to transport property or persons other than the driver);
(P) paving equipment (asphalt pavers,
concrete pavers, etc.);
(Q) rammers
and tampers;
(R) rollers;
(S) saws (concrete saws, industrial saws,
etc.);
(T) scrapers;
(U) surfacing equipment;
(V) tractors; and
(W) trenchers.
(2) Surcharge--A fee imposed on the sale,
lease, or rental in Texas of new or used off-road, heavy-duty diesel equipment
and on the storage, use, or other consumption of such equipment subject to use
tax as provided for in §
3.346 of this title (relating to
Use Tax). This surcharge is in addition to state and local sales and use taxes
that are due on the equipment and is for the benefit of the Texas Emissions
Reduction Fund, which is administered by the Texas Commission on Environmental
Quality.
(3) Sales price--The total
amount a purchaser pays a seller for the purchase, lease, or rental of
off-road, heavy-duty diesel equipment as set out in Tax Code, §
151.007. The sales price
includes charges for accessories, transportation, installation, services, and
other expenses that are connected to the sale.
(b) Imposition of Surcharge.
(1) A surcharge is due on the sales price of
off-road, heavy-duty diesel equipment sold in Texas. If the purchaser takes
possession of or title to the equipment on or after September 1, 2015, the
surcharge is 1.5% of the sales price. If the purchaser took possession of or
title to the equipment on or after July 1, 2003, and before September 1, 2015,
the surcharge is 2.0% of the sales price.
(2) A surcharge is due on the sales price,
excluding separately stated interest charges, of off-road, heavy-duty diesel
equipment leased under a financing lease, as defined in §
3.294 of this title (relating to
Rental and Lease of Tangible Personal Property). If the lessee takes possession
of the equipment on or after September 1, 2015, the surcharge is 1.5% of the
sales price. If the lessee took possession of the equipment on or after July 1,
2003, and before September 1, 2015, the surcharge is 2.0% of the sales
price.
(3) A surcharge is due on
the lease payments for off-road, heavy-duty diesel equipment that is leased
under an operating lease, as defined in §
3.294 of this title. If the lessee
takes possession of the equipment on or after September 1, 2015, the surcharge
is 1.5% of the lease payments. If the lessee took possession of the equipment
on or after July 1, 2003, and before September 1, 2015, the surcharge is 2.0%
of the lease payments.
(4) A
surcharge is due on the sales price of off-road, heavy-duty diesel equipment
purchased, leased, or rented out of state and brought into Texas for use. If
the purchaser brings the equipment into Texas for use on or after September 1,
2015, the surcharge is 1.5% of the sales price. If the purchaser brought the
equipment into Texas for use on or after July 1, 2003, and before September 1,
2015, the surcharge is 2.0% of the sales price. See §
3.346 of this title.
(5) A 1.0% surcharge is due on off-road,
heavy-duty diesel construction equipment sold, leased, or rented if the
purchaser took possession of or title to the equipment on or after August 31,
2001 and before July 1, 2003. No surcharge is due on equipment sold, leased, or
rented during this time period if the equipment is subject to use tax or is
used in non-construction activities.
(c) Collection of surcharge. A seller must
collect the surcharge from the purchaser on the sales price of each sale,
lease, or rental in Texas of off-road, heavy-duty diesel equipment that is not
exempt from sales tax. The surcharge is collected at the same time and in the
same manner as sales or use tax. See §
3.286 of this title (relating to
Seller's and Purchaser's Responsibilities) for information on the collection
and remittance of sales or use tax. The surcharge is collected in addition to
state and local sales or use taxes but is not collected on the amount of the
sales or use tax.
(d) Exemptions.
No surcharge is collected on the sale, lease, or rental of off-road, heavy-duty
diesel equipment that is exempt from sales and use tax. A seller who accepts a
valid and properly completed resale or exemption certificate, direct payment
exemption certificate, or other acceptable proof of exemption from sales and
use tax is not required to collect the surcharge. For example, a seller may
accept an exemption certificate in lieu of collecting sales tax and the
surcharge from a farmer who purchases a bulldozer to be used exclusively in the
construction or maintenance of roads and water facilities on a farm that
produces agricultural products that are sold in the regular course of
business.
(e) Reports and payments.
(1) A seller or purchaser with a surcharge
account, including a direct payment holder, must report and pay the surcharge
in the same manner as sales or use tax, but separate reports and payments for
the surcharge are required.
(A) A seller's or
purchaser's reporting period (i.e., monthly, quarterly, or yearly) and due date
for the surcharge are determined by the amount of surcharge that the seller
collects or purchaser owes. See §
3.286 of this title.
(B) A purchaser who does not hold a surcharge
account must report and pay the surcharge by the 20th day of the month
following the month in which the purchaser acquired off-road, heavy-duty diesel
powered equipment on which the seller did not collect the surcharge.
(2) A seller or purchaser must
report and pay the surcharge to the comptroller on forms prescribed by the
comptroller for the surcharge. A seller or purchaser is not relieved of the
responsibility for filing a surcharge report and paying the surcharge by the
due date because the seller or purchaser fails to receive the correct form from
the comptroller.
(3) The penalties
and interest imposed for failure to timely file and pay the surcharge are the
same as those imposed for failure to timely file and pay sales or use tax.
Likewise, the 0.5% discount for timely filing and payment is applicable to
surcharge reports and payments. No prepayment discount will be paid a seller or
purchaser for prepayment of the surcharges.
(f) Expiration. The surcharge expires on the
last day of the state fiscal biennium during which the Texas Commission on
Environmental Quality publishes in the Texas Register the
notice required by Health and Safety Code, §
382.037.
Notes
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