HB 1402 Summary

• Excludes motorized heavy equipment vehicles (minimum 1,500 pounds, designed for construction/industrial/maritime/mining use) from property tax assessment beginning with the 2014 assessment date.

• Establishes an annual 2% excise tax on motorized heavy equipment vehicles beginning in 2015, based on acquisition cost depreciated according to a seven-year schedule (40% year 1, declining to 15% year 7+).

• Requires owners to register motorized heavy equipment vehicles with the department of state revenue by May 1 each year, paying a $10 filing fee plus the excise tax.

• Imposes a 3% rental excise tax on rentals of motorized heavy equipment vehicles beginning after March 31, 2014.

• Allows owners who rent equipment to claim a credit against their excise tax liability equal to rental excise taxes paid in the preceding calendar year, with carryforward of excess credits for up to seven years.