Is excavation equipment taxable in Texas
Yes—excavation equipment rentals are generally taxable in Texas if you are renting the equipment itself (e.g., excavators, skid steers, bulldozers, backhoes) and the customer receives possession or operational control of the equipment. Texas taxes leases and rentals of tangible personal property. (Texas Comptroller) The key distinction is: Situation Tax Treatment Excavator rented without operator Taxable […]
1.5% diesel surcharge on the rental of excavation or other off-road diesel equipment in Texas:
1.5% diesel surcharge on the rental of excavation or other off-road diesel equipment in Texas: The 1.5% surcharge is separate from Texas sales tax. Texas imposes a 1.5% Texas Emissions Reduction Plan (TERP) surcharge on the sale, lease, or rental of qualifying off-road heavy-duty diesel equipment (generally 50+ horsepower). The surcharge is in addition to […]