LANSING, Mich. March 2, 2022 – The Michigan House of Representatives passed House Bills 4833 and 4834 today, which would create an alternative, specific personal property taxing structure for qualified heavy equipment rentals.
Currently, businesses are required to pay personal property tax to the local tax collecting unit where the mobile equipment resides on Dec. 31 of a given year. The bipartisan package would allow a personal property specific tax of 2% of the rental price to be imposed on each transaction of a qualified renter for renting qualified heavy equipment.
“Small businesses have enough on their plates, and we shouldn’t make it harder for them to do their jobs across our state,” said state Rep. Jim Ellison (D-Royal Oak), sponsor of HB 4833. “Instead of requiring small businesses to juggle multiple tax filings, this legislative package allows them to spend more time focusing on growing their company and our economy. I’m glad Michigan is one step closer to putting the needs of small businesses first.”