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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3TAX ADMINISTRATION
SUBCHAPTER FMOTOR VEHICLE SALES TAX
RULE §3.96Imposition and Collection of a Surcharge on Certain Diesel Powered Motor Vehicles

(a) Definitions. The following words and terms, when used in this section, shall have the following meaning, unless the context clearly indicates otherwise.

  (1) Motor vehicle subject to surcharge--An on-road motor vehicle that is diesel powered and registered with a gross vehicle weight in excess of 14,000 pounds; the surcharge does not apply to a recreational vehicle, as that term is defined by Transportation Code, §522.004(b), that is not held or used for the production of income. See §3.320 of this title (relating to Texas Emissions Reduction Plan Surcharge; Off-Road, Heavy-Duty Diesel Equipment) for information about the imposition of the surcharge to certain equipment.

  (2) Lease--An agreement, other than a rental, whereby an owner of a motor vehicle gives exclusive use of the vehicle to another for consideration for a period that is more than 180 days.

  (3) Rental--An agreement whereby:

    (A) the owner of a motor vehicle gives exclusive use of the vehicle to another for consideration for a period that is 180 days or less;

    (B) the original manufacturer of a motor vehicle gives exclusive use of the motor vehicle to another for consideration; or

    (C) the owner of a motor vehicle gives exclusive use of the vehicle to another for re-rental purposes.

  (4) Surcharge--A fee imposed on a retail sale or use in this state of a motor vehicle described in paragraph (1) of this subsection. The surcharge is imposed by Tax Code, §152.0215, for the benefit of the Texas Emission Reduction Plan Fund as provided in Health and Safety Code, §386.251.

(b) Payment, calculation, collection and remittance. Except as provided in subsection (c) of this section, the surcharge is paid, calculated, collected, and remitted in the same manner as the tax imposed on a Texas sale as provided in Tax Code, Chapter 152, and §3.74 of this title (relating to Seller Responsibility). The fee is 1.0% of the total consideration paid for a motor vehicle subject to surcharge that is a model year 1997 or later, or 2.5% on a motor vehicle subject to surcharge that is a model year 1996 or earlier.

(c) Motor vehicles purchased for rental or lease.

  (1) Rental. A person who purchases or brings into Texas a motor vehicle for rental must pay the surcharge at the time of registration and titling. Payment of the surcharge cannot be deferred even if the purchaser is allowed to defer the motor vehicle sales and use tax. The surcharge is not due on the rental receipts paid to the motor vehicle owner.

  (2) Lease. A person who purchases or brings into Texas a motor vehicle for lease must pay the surcharge based on the total consideration paid by the owner at the time of registration and titling. The surcharge is not due on the lease receipts paid to the motor vehicle owner.

(d) A motor vehicle subject to surcharge that is brought into Texas for use by a new resident of this state is subject to the surcharge.

(e) Exemptions. The exemptions provided in Tax Code, Subchapter E, Chapter 152, apply to the surcharge.

(f) The surcharge may not be offset by sales or use tax paid to other states on the purchase of a motor vehicle subject to surcharge.

(g) Expiration. The surcharge expires August 31, 2019.


Source Note: The provisions of this §3.96 adopted to be effective January 3, 2002, 26 TexReg 11034; amended to be effective June 1, 2004, 29 TexReg 5410; amended to be effective January 26, 2009, 34 TexReg 432; amended to be effective August 10, 2015, 40 TexReg 5063

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