Reporting Heavy Duty Equipment Tax and Diesel Engine Surcharge 



 

Overview

This is going to show you how to get the reporting information for the Heavy Equipment Tax as well as the Diesel Engine Surcharge as well.

 
Topics in this article include:

• What is Heavy Duty Equipment Tax
• What is Off-Road 50 HP Heavy-Duty Diesel Equipment Surcharge
• Reporting the Diesel Engine Surcharge
• Calculating the value of the Surcharge and the total revenue that generated it
• Example

What is 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. Depending on your state, the weight requirements may be a minimum of 1,500 pounds.

For reporting the Heavy Equipment Tax: 

Expert: Program Menu > Custom Report > HeavyEquipmentTax.rpt or HeavyEquipmentTax.SQL.rpt

Elite: Right Menu > Custom > HeavyEquipmentTax.SQL.rpt

1. Select the report and click on View.
 

2. Select the desired dates to report.
 

3. Enter the text from User Defined Field 2.
 

4. Finally, make a final selection on what Tax Type you are referring to. When complete click on OK.
 

5. Report will generate in Crystal Report with the Contract Number, Date, Revenue, and Unit Tax. 
 

What is Off-Road 50 HP Heavy-Duty Diesel Equipment Surcharge

Heavy-Duty Diesel Equipment Surcharge 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 State of Texas has a TERP Tax and the Pacific Northwest, Oregon and Washington, has the HERT Tax.

The surcharge is 1.5 percent, depending on state requirements, on 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 to be collected by the dealer or lessor.

The requirement for reporting this tax is solely based on tax collected and revenue that resulted in the tax due.

Reporting the Diesel Engine Surcharge

1. From your File Maintenance, go to your Item File, and select your Combined Tax Item. This example will use the HE50TAX.
 

Note: To get this information, this will require a manual calculation. There is no report for this tax total.
 

2. Next, go to Analysis > Income History.
 

Calculating the value of the Surcharge and the total revenue that generated it

1. Take the rate of the 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 Heavy Equipment Tax. 
 

Note: The rate of your Heavy Equipment Tax may vary depending on the state.
 

2. Multiply that by the revenue collected on the combined tax item (the total is the Heavy Equipment Tax collected on the combined tax item) .
 

3. Deduct that amount from the 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 May 2018 the combined rate is 1.67

Note: This is using Texas50 HP Diesel Engine Surcharge TERP.
 

.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




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