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. The seller collects the surcharge along with the sales tax and remits it to the Comptroller.
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:
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.
Use Form 01-142, Texas Off-Road, Heavy-Duty Diesel Equipment Surcharge Return (PDF), 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.
|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.
Due dates are based on the surcharge collection amount:
Returns must be filed or postmarked on or before the 20th day of the month following the end of each reporting period (for example, April 20 for March activity).
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.
There is a 0.5 percent discount for filing and paying on time.
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 Google Chrome, Microsoft Internet Explorer and Apple Safari.