What Texas Form 01-142 (2018) Is For
The Heavy-Duty Diesel Equipment Surcharge levied under the Texas Emissions Reduction Plan must be reported and paid using Texas Form 01-142 (2018). Certain off-road, heavy-duty diesel equipment transactions made within the state of Texas are subject to this surcharge.
The surcharge is separate from sales tax, income tax, franchise tax, property tax, and motor vehicle tax. Revenue collected supports emissions-reduction programs authorized by the state legislature and administered by the Texas Comptroller of Public Accounts.
When You’d Use Texas Form 01-142
A business uses Texas Form 01-142 when it sells, leases, or rents qualifying off-road, heavy-duty diesel equipment in the state of Texas. The filing requirement applies regardless of whether the equipment is new or used, provided it meets statutory thresholds.
Late filing applies when the form is not submitted by the required due date, even if no diesel surcharge is owed. An amended filing is required when previously reported figures were incorrect, including errors involving tax-exempt transactions, refund claim amounts, or surcharge calculations.
Key Rules or Details for 2018
The diesel surcharge rate for 2018 was 1.5 percent of the total amount paid for eligible equipment. Texas's sales and use tax rules say that delivery, setup, and related service fees are part of the taxable base.
Only off-road vehicles with 50 horsepower or more will be required to pay the extra fee. Equipment used in timber operations, farming, or qualifying manufacturing activities may be exempt from taxes if it is accompanied by the necessary paperwork.
The surcharge does not apply to vehicles on the road, rolling stock, interstate trucker equipment that has an IFTA license, or vehicle transaction filings that are reported on Form 130-U. Equipment that is given away with an Affidavit of Motor Vehicle Gift Transfer is also not included.
Step-by-Step (High Level)
Step 1: Identify qualifying transactions
Examine sales data and separate sales, rentals, or leases of diesel equipment that qualify for the reporting period.
Step 2: Confirm exemptions
Verify if any transactions are exempt due to manufacturing documentation, timber operations, or agricultural use. Maintain the period records and the exemption support.
Step 3: Calculate taxable receipts and surcharge due
To figure out the surcharge due, the total taxable receipts, which include delivery and service charges, are then multiplied by the diesel surcharge rate.
Step 4: Complete Texas Form 01-142
Use the SSN or FEIN to enter the business's identification information, report the taxable amounts, and enter the calculated surcharge. Check entries for accuracy before submitting them.
Step 5: File, pay, and record the transaction
Submit the form and payment using an approved method, such as Webfile, TEXNET, or EDI. If you are using direct deposit, make sure to post the payment to the right liability or GL account after checking the banking information.
Common Mistakes and How to Avoid Them
- Charging surcharge on non-qualifying equipment: Confirm horsepower thresholds and off-road use requirements using equipment specifications before invoicing to prevent improper surcharge collection.
- Excluding delivery or installation charges: Include delivery, installation, and setup charges in the surcharge base when they are part of a bundled transaction.
- Treating the surcharge as a refundable sales tax: Use the Texas Claim for Refund process and follow the statute of limitations rules for any refund or recovery request.
- Missing filing deadlines: Align calendar due dates with internal timelines for related filings (such as monthly use tax or occupational privilege tax) to reduce late-penalty risk.
- Accepting incomplete exemption documentation: Obtain and retain valid exemption certificates and supporting records (service tickets and consistent invoice documentation) to reduce audit exposure.
What Happens After You File
After the filing is done, the Texas Comptroller posts the return and payment to the business account. It can take weeks to process paper submissions, but electronic filings get instant confirmation.
The Comptroller can verify the reported data against other records, such as information about supplier licenses, bulk transfer or terminal system activity, and terminal operator filings. Inconsistencies may lead to questions from correspondence or audits.
Businesses should keep records for a minimum of four years. This includes Surcharges tab summaries, Master Files Maintenance logs, Parts and Facilities documentation, and Sales by Part Number reports.
FAQs
Who must file Texas Form 01-142 (2018)?
Any seller or lessor of qualifying off-road, heavy-duty diesel equipment in Texas must file the form, even when no surcharge is due for the reporting period.
Can the diesel surcharge be reported with sales tax filings?
The diesel surcharge must be reported separately on Form 01-142. It cannot be combined with Texas Sales and Use Tax or other tax returns.
How are overpayments handled?
Overpayments require a claim for refund supported by documentation showing the surcharge was refunded to the customer or credited appropriately.
Does the surcharge apply to diesel fuel or fuel supply tanks?
The surcharge applies only to qualifying equipment transactions. It does not apply to diesel fuel, diesel fuel blended products, fuel supply tanks, or terminal rack activity.
What if online filing errors occur?
Some people who file get security service messages that discuss issues with insufficient data, problems with SQL commands, or a Cloudflare Ray ID. These system notices don't change who has to file.
Where can official guidance be found?
Official instructions, forms, and filing tools are available through the Texas Comptroller of Public Accounts website, typically referenced at the bottom of this page or accessed using the button below.
Is this form related to other Texas programs?
Texas Form 01-142 operates independently from programs such as Texas Education Freedom Accounts, Form T-64 Disclosure, or multimedia content initiatives on a new site.
