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December 5, 2017


When is a Texas Automotive Oil Sales Fee due?

If you sell oil in Texas, you likely need to pay the Texas Automotive Oil Sales Fee. The application for the Automotive Oil Sales Fee states that everyone that either manufacturers and sells automotive oil in the state, imports oil into the state for sale, use or consumption or sells more than 25,000 gallons of automotive oil annually and owns a warehouse or distribution center in the state must file an Application for the Automotive Oil Sales Fee Questionnaire. 

How much is the tax? The rate is generally one cent per quart of the oil sold or imported in the state. The tax is due the 25 day after the quarter has ended. This translates to a due date of April 25 for the first quarter, July 25 for the second, October 25 for the third and January 25 for the fourth quarter.

What happens if I do not pay this tax? The Comptroller explains that a failure to meet one’s tax obligations can result in serious penalties and additional interest. The penalties that can apply include a five to ten percent penalty as well as an additional interest fee if the tax is over 60 days past due.

Navigating state and local tax obligations is a complex matter. However, the repercussions that come with a failure to meet these obligations are serious. These repercussions can include fees like those noted above as well as criminal charges depending on the details of the alleged missed tax obligations.

Anyone that is accused of failing to meet tax obligations or is facing an audit is wise to seek legal counsel. An attorney experienced in Texas state tax issues can help to find a resolution for your tax dispute.