taxes

Coastal Protection Fee

Who is responsible for this fee?

Every person who owns crude oil or condensate in a vessel must pay the Coastal Protection Fee when the crude oil or condensate is transferred to or from a marine terminal in Texas.

Rates

Effective March 1, 2014, the tax rate is 1.333 cents per barrel of crude oil or condensate transferred to or from vessels at a Texas marine terminal. The fee is paid only once on each barrel of crude oil or condensate, not on each transfer of the barrel.

The rate can vary or the fee can be suspended, depending on the balance in the Coastal Protection Fund. Coastal protection fees are deposited into the Coastal Protection Fund administered by the General Land Office (GLO).

Due Date

Monthly: last day of the month following the end of the reporting month (for example, April 30 for March activity).

Penalties and Interest

Penalties
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $100,000

A paper report is the only available reporting method.

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover and MasterCard)
  • TEXNET
  • Check
$100,000 or more

A paper report is the only available reporting method.

TEXNET is the only acceptable payment method.

Additional Resources

Coastal Protection Fee Reinstatement Letter - 01-10-2014 (PDF)

Coastal Protection Fee Suspension Letter - 06-05-2012 (PDF)

SB 1863 - Coastal Protection Fee Reduction - 08-26-2005 (PDF)

Coastal Protection Fee Reinstatement Letter - 12-10-2004 (PDF)

Coastal Protection Fee Suspension Letter - 07-30-2003 (PDF)