Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts, Glenn Hegar

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Electronic Filing

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Report or Pay

Use WebFile to electronically file a tax report and submit payment (by credit card, electronic check or via TEXNET).

See Filing and Payment Requirements below.

New to WebFile:

Texas Emissions Reduction Plan (TERP) - Off Road Heavy Duty Diesel Equipment Surcharge

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The Texas Emissions Reduction Plan (TERP) Off-Road, Heavy-Duty Diesel Equipment Surcharge applies to the sale, use, lease or rental of off-road, heavy-duty diesel equipment and is based on the sale, lease or rental amount.

TERP was created to help improve the state’s air quality and to comply with federal pollution emission standards. TERP funding sources include the Off-Road, Heavy-Duty Diesel Equipment Surcharge, the Motor Vehicle Registration Surcharge and the Motor Vehicle Texas Emissions Reduction Plan Surcharge.

Equipment Subject to the Surcharge

The surcharge is due on diesel-powered equipment of 50 horsepower or more, including mobile or stationary equipment used in construction, mining and other activities.

Examples include:

  • bore/drill rigs
  • cement and mortar mixers
  • concrete pavers
  • concrete/industrial saws
  • cranes
  • crawler tractors/dozers
  • crushing/processing equipment
  • dumpsters/tenders
  • excavators
  • graders
  • mining equipment
  • off-highway tractors
  • off-highway trucks
  • pavers
  • paving equipment
  • plate compactors
  • rollers
  • rough terrain forklifts
  • rubber tire loaders
  • rubber tire tractors/dozers
  • scrapers
  • signal boards/light plants
  • skid steer loaders
  • surface equipment
  • tampers and rammers
  • tractors/loaders/backhoes
  • trenchers

Equipment Not Subject to the Surcharge

The surcharge does not apply to:

  • repair or replacement parts or accessories related to the equipment, unless sold or leased with equipment;
  • equipment used in oil and gas exploration and production at an oil or gas well site;
  • equipment eligible for the agricultural use exemption;
  • equipment eligible for the timber operations exemption;
  • processing equipment eligible for manufacturing exemptions; and
  • equipment that qualifies for exemption from sales or use tax for any other reason.

Who Must Collect and Report the Surcharge

If you sell, lease or rent off-road, heavy-duty diesel equipment of 50 horsepower or more, you must collect this surcharge on the sale, lease or rental amount. The surcharge is in addition to sales and use tax.

Submit Form 01-142, Texas Off-Road, Heavy-Duty Diesel Equipment Surcharge Return (PDF, 194KB) to report and pay.

Buyers who do not pay the surcharge to the seller or lessor must pay and report the surcharge directly to the Comptroller’s office on or before the 20th day of the month following the month when the purchase was made or when the equipment subject to the surcharge was brought into Texas.

Rates

TERP Off-Road, Heavy-Duty Diesel Equipment Surcharge Rates*

Effective Date Rate
Sept. 1, 2015 1.5 percent
July 1, 2003 – Aug. 31, 2015 2 percent
Sept. 1, 2001 – July 1, 2003 1 percent

*There was no surcharge before Sept. 1, 2001.

The surcharge rate on a lease contract is based on the date the contract was entered into. The surcharge rate on a lease renewal or extension is based on the date the contract is renewed or extended.

Late Filing Penalty

A $50 late filing penalty (PDF, 91KB) is due on every return filed after the due date, even if no tax was due for the period.

Due Date

Return due dates are based on the surcharge collection amount.

  • $1,500 or more collected per month: file monthly
  • less than $1,500 collected per month: file quarterly
  • less than $1,000 collected per year: file yearly

Returns must be filed or postmarked on or before the 20th day of the month following the end of each reporting period.

There is a 0.5 percent discount for filing and paying on time.

Filing and Payment Requirements

We encourage you to report this surcharge electronically using WebFile.


Filing Requirements

If in the preceding fiscal year, you paid:

  • less than $10,000 – use any available reporting and payment methods available for this tax or fee. While electronic filing is not required, this option is encouraged.
  • $10,000 or more – use the guidelines below to determine your specific reporting and payment requirements.

The state fiscal year begins September 1 and ends August 31.

Amount Reported and Paid in Preceding Fiscal Year $10,000 - $49,999 $50,000 - $99,999 $100,000 or more
Reporting Method(s)

(any one of the methods listed can be used)

Payment Method(s)

(any one of the methods listed can be used)

  • Web Electronic Funds Transfer (EFT) via WebFile
  • Credit Card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
  • Check
  • Web Electronic Funds Transfer (EFT) via WebFile
  • Credit Card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
  • Check
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In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Microsoft Internet Explorer, Google Chrome and Apple Safari.

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