Heavy Equipment Rental Gross Receipts Tax

The Heavy Equipment Tax Reform Act of 2010 took effect on December 31, 2010. This law requires the collection of a 2% Gross Receipts Tax on the short-term lease or rental of heavy equipment property. In return, that property is exempt from Personal Property Tax.

Specifically, this law affects businesses who meet the following two criteria:

1. The business is described under Code 532412 of the North American Industry Classification System as published by the United States Census Bureau.

2. The largest segment of total rental receipts of the business is from short-term lease or rental of heavy equipment property.

Heavy equipment property is defined as “construction, earth moving, or industrial equipment that is mobile including any attachment for the heavy equipment. Heavy equipment includes a self-propelled vehicle that is not designed to be driven on a highway; or industrial electrical generation equipment, industrial lift equipment, industrial material handling equipment, or other similar industry equipment.”

Short-term lease or rental means a lease or rental of heavy equipment property for a period of 365 days or less.

THE FOLLOWING DATES ARE IMPORTANT:

April 15 of each year – State of Maryland Personal Property Return Due – you should list any personal property that will be exempt under this law and on which you have been collecting Gross Receipts Tax on Line 11 of Form 4B.

July 31 of each yearAnnual Report and listing of all exempt property due to the County.

Quarterly Gross Receipts Tax Return due to the Count on January 31, April 30, July 31 and October 31 each year.

February 28 each year – County will send Annual Balancing Statement and if necessary, a Gross Receipts Shortage Bill.

March 31 each year – Payment for Gross Receipts Shortage due to County.

Call 410-313-4087 for assistance.