34 Tex. Admin. Code § 3.701 - Automotive Oil Sales Fee Reporting Requirements
(a) Definitions. The following words and
terms, when used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1)
Automotive oil--Any lubricating oils that can be used in an internal combustion
engine, crankcase, transmission, gear box, or differential for an automobile,
bus, or truck.
(A) Automotive oil includes
natural or synthetic engine oil, transmission fluid, and gear oil of any type
that can be used, according to the labeling, in the engine of an automobile,
truck, or bus, and includes oil that is not labeled specifically for this use,
but is suitable for this use according to generally accepted industry
specifications.
(B) Automotive oil
does not include:
(i) chain oil;
(ii) turbine oil;
(iii) waste oil;
(iv) outboard motor oil;
(v) refrigerant oil;
(vi) cotton spray oil;
(vii) form oil; and
(viii) oil additives as they exist prior to
blending.
(2)
Distributor--A person who maintains a distribution center or warehouse in this
state and annually sells more than 25,000 gallons of automotive oil. A
distributor must obtain a permit from the comptroller's office.
(A) The distributor's permit is valid until
the permit is surrendered by the holder or canceled by the
comptroller.
(B) Oil manufacturers
that meet the distributor definition, and are currently liable for paying this
fee to the comptroller, will not be required to obtain a distributor's
permit.
(3)
Do-it-yourselfer used oil collection center--A site or facility registered with
the TCEQ that accepts or aggregates and stores used oil collected only from
household do-it-yourselfers.
(4)
First sale--The first actual sale of automotive oil delivered to a location in
this state and sold to a purchaser who is not an automotive oil manufacturer or
distributor. A first sale also includes the use or consumption of automotive
oil in this state. First sale does not include the sale of automotive oil:
(A) exported from this state to a location
outside this state for the purpose of sale or use outside this state;
(B) to the United States
Government;
(C) for resale to or
use by vessels engaged exclusively in foreign or interstate commerce;
or
(D) to a subsequent purchaser
who maintains a do-it-yourselfer used oil collection center or used oil
collection center registered by the TCEQ.
(5) Importer--Any person who imports, or
causes to be imported, automotive oil into this state for sale, use, or
consumption.
(6) Oil
manufacturer--Any person or entity that formulates automotive oil and packages,
distributes, or sells that automotive oil. Oil manufacturer includes any person
packaging or repackaging automotive oil.
(7) Out-of-state seller--A person or entity
engaged in business in this state as defined in §
3.286 of this title (relating to
Seller's and Purchaser's Responsibilities, including Nexus, Permits, Returns
and Reporting Periods, and Collection and Exemption Rules).
(8) TCEQ -- Texas Commission on Environmental
Quality.
(9) Used oil collection
center--A site or facility that is registered by the TCEQ to manage used oil
collected from used oil generators or household do-it-yourselfers.
(b) Exemptions.
(1) Sales of automotive oil to an oil
manufacturer or distributor are exempt from the automotive oil fee.
(2) Sales of automotive oil to a subsequent
purchaser who maintains a do-it-yourselfer used oil collection center or used
oil collection center registered by the TCEQ are exempt from this fee. A copy
of its current TCEQ registration must be provided by the purchaser as
documentation for an exempt purchase.
(3) Sales of automotive oil to be used by
vessels engaged exclusively in foreign or interstate commerce are exempted from
this fee.
(4) Sales of automotive
oil to the United States Government are exempt from this fee.
(5) Sales of automotive oil delivered to a
location in another state for the purpose of sale or use outside the State of
Texas are exempt from this fee if shipment is made by means of:
(A) the facilities of the seller;
(B) delivery by the seller to a carrier for
shipment to a consignee at a point outside this state;
(C) delivery by the seller to a forwarding
agent for shipment to a location in another state of the United States or its
territories or possessions; or
(D)
the facilities of the purchaser if proof of delivery outside of Texas is
provided.
(6) Exports
beyond the territorial limits of the United States are exempt from this fee if
proof of export can be shown by:
(A) a copy
of the bill of lading issued by a licensed and certificated carrier showing the
seller as consignor, the buyer or purchaser as consignee, and a delivery point
outside the territorial limits of the United States;
(B) documentation provided by a licensed
United States custom broker certifying that delivery was made to a point
outside the territorial limits of the United States;
(C) formal entry documents from the country
of destination showing that the automotive oil was imported into a country
other than the United States. For the country of Mexico, the formal entry
document would be the pedimento de importaciones document with a computerized
number issued by Mexican customs officials;
(D) a copy of the original airway, ocean, or
railroad bill of lading issued by a licensed and certificated carrier which
describes the items being exported and a copy of the freight forwarder's
receipt if the freight forwarder takes possession of the property in Texas;
or
(E) a purchaser's blanket
maquiladora exemption certificate and a copy of the purchaser's maquiladora
export permit provided to the seller as required under §
3.358 of this title (relating to
Maquiladoras).
(c) Credit or refund of fee paid. A purchaser
of automotive oil who makes an exempt sale or use of the oil as provided in
this section may obtain a refund or credit from the supplier for the automotive
oil fee previously paid to the supplier. The purchaser requesting a refund or
credit from its supplier must furnish documentation that verifies the
exemption. An oil manufacturer, or distributor, or importer who makes an exempt
sale or use of the oil as provided in this section may obtain a refund or
credit from the comptroller for the automotive oil fee previously paid to the
comptroller. The amount of refund that may be claimed may equal but not exceed
the amount of the fee paid on the automotive oil. See Tax Code, §§
111.104(Refunds);
111.1042 (Tax Refund: Informal Review); 111.105 (Tax Refund: Hearing); 111.107
(When Refund or Credit is Permitted).
(d) Report and payment required.
(1) Each automotive oil manufacturer,
importer, or distributor shall file a report with the comptroller stating the
number of quarts of automotive oil sold, imported, used, or consumed in this
state.
(2) An automotive oil
manufacturer or distributor who makes a first sale or use of automotive oil in
Texas is liable for the fee.
(3) An
automotive oil importer who imports or causes to be imported automotive oil
into Texas for sale, use, or consumption is liable for the fee at the time the
oil is received by the importer.
(e) Amount of fee. The rate of fee is $.01
per quart or $.04 per gallon of automotive oil.
(f) Due date of report and payment.
(1) The automotive oil fee report and payment
are due no later than the 25th day of the month following the end of each
calendar quarter in which the liability for the fee is incurred.
(2) An automotive oil manufacturer, importer
or distributor of automotive oil must file a quarterly report even if there is
no fee to report.
(g)
Discount. A person required to pay the fee may retain 1.0% of the amount of the
fees due from each quarterly payment as reimbursement for administrative
costs.
(h) Penalty. A person who
does not file a report as provided by this section, or who possesses a fee
collected or payable under this section and does not timely remit the fee to
the comptroller, shall pay a penalty of 5.0% of the amount of the fee due and
payable. If the person does not file the report or pay the fee before the 30th
day after the day on which the fee or report is due, the person shall pay a
penalty of an additional 5.0% of the amount of the fee due and
payable.
(i) Interest. Interest
accrues on the unpaid fee due beginning 60 days after the due date and ends the
day on which the fee is paid.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.