|(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
(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
(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
(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
(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
(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