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IN HB1323

Bill

Status

Passed

3/21/2018

Primary Sponsor

Todd Huston

Click for details

Origin

House of Representatives

2018 Regular Session

AI Summary

HEA 1323 Summary

  • Excludes heavy rental equipment from personal property tax assessment effective January 1, 2019, and establishes a 2.25% excise tax on rentals of heavy rental equipment from retail merchants.

  • Heavy rental equipment is defined as personal property owned by businesses classified under NAICS code 532412 (equipment rental industry) that is rented for periods up to 365 days or open-ended, excluding mining equipment and property tax abatement-eligible equipment.

  • Retail merchants collect and remit the excise tax to the Department of State Revenue using the same procedures as the state gross retail tax, with tax sourced to the business location where equipment is rented.

  • Excise tax revenues are deposited in a special account and distributed to counties on April 30 and October 30 each year based on collection location, then apportioned among local taxing units like property taxes.

  • Before January 1, 2020, distributed excise taxes must be deposited in taxing units' levy excess funds; after December 31, 2019, taxes are allocated among funds proportionally to property tax collections, and units may request advances of revenues.

Legislative Description

Heavy equipment rental excise tax. Excludes heavy rental equipment from the assessment of the personal property tax. Imposes an excise tax on the rental of heavy rental equipment (excise tax). Provides procedures for the sourcing, collection, and distribution of the excise tax. Provides that the excise tax is apportioned and distributed to local governmental units (units) in the same manner that property taxes are apportioned and distributed. Provides that the excise taxes distributed to the units before January 1, 2020, must be deposited in the unit's excess levy fund. Provides that after December 31, 2019, excise taxes distributed to the

Last Action

Public Law 188

3/21/2018

Committee Referrals

Tax and Fiscal Policy2/1/2018
Ways and Means1/16/2018

Full Bill Text

No bill text available