1) What is Texas Heavy Duty Equipment Tax:
Heavy equipment is defined as self-propelled, self-powered, or pull-type equipment, including farm equipment and diesel engines, intended to be used for agricultural, construction, industrial, maritime, mining, or forestry uses. Weight requirement is minimum 1,500 pounds.
For reporting the Texas Heavy Equipment Tax:
Program Menu> Custom Reports> HeavyEquipmentTax.rpt
a. Click “View”
b. Select the desired dates to report.
c. Enter the text from User Defined Field 2.
*If you followed our example it will be HEAVYEQTAX.
Link to information about the bill including the actual tax.
http://www.legis.state.tx.us/billlookup/History.aspx?LegSess=82R&Bill=HB2476
2) What is Off-Road 50 HP Heavy-Duty Diesel Equipment Surcharge TERP:
TERP provides funding for cleaner on- and off-road engines; programs for energy efficiency, cleaner fuels and related infrastructure; and research and development of new technologies related to improved air quality.
The surcharge is 1.5 percent of the sale, lease or rental price of heavy-duty, off-road diesel-powered equipment. The surcharge is in addition to regular state and local sales taxes and is collected by the dealer or lessor.
The requirements for reporting this tax is solely based on tax collected and revenue that resulted in the tax due.
For reporting the 50 HP Diesel Engine Surcharge TERP:
Program Menu> File Maintenance> Item File> select the HE50TAX (your combined tax item)> Analysis> Income History
To calculate the value of the Surcharge and the total revenue that generated it:
1. Take the rate of the Texas Heavy Equipment Tax (the combined tax rate on the item less the 1.5 %) and divide by the combined rate- this amount is the percentage rate of the Texas Heavy Equipment Tax
2. Multiply that by the revenue collected on the combined tax item (the total is the Texas Heavy Equipment Tax collected on the combined tax item)
3. Deduct that amount from the tax collected (the remainder is the HTERP tax collected)
4. Multiply that amount by 66.666 and that is your total revenue that generated the tax.
Please see example below
In the example above for March 2017 the combined rate is 1.67
.17 divided by 1.67= 0.1017964
Total combined (HE50TAX) collected 522.70 comes from Analysis> Income History
.1017964 multiplied by 522.70= 53.21 Heavy Equipment Tax
522.70 subtract 53.21= 469.49 in TERP 1.5% Surcharge
469.49 x 66.666 (100 divided by TERP rate 1.5%)= 31299.02 in income revenue