HB 5778 Summary

• Exempts qualified heavy equipment rental personal property from property tax collection under the general property tax act, effective December 31, 2020 and annually thereafter, if an exemption has been properly claimed under the qualified heavy equipment rental personal property specific tax act.

• Defines "qualified heavy equipment rental personal property" as construction, earthmoving, or industrial equipment that is mobile and rented to customers, including attachments and ancillary equipment, but excludes handheld tools and equipment for oil and gas, mining, or forestry industries.

• Specifies that qualified equipment includes self-propelled non-highway vehicles, industrial electrical generation equipment, lift equipment, material handling equipment, HVAC equipment, compressors, generators, pumps, shoring/trenching equipment, and vehicles not subject to Michigan vehicle code titling.

• Defines "qualified renter" as a person engaged in equipment rental (NAICS codes 532412 or 532310) that primarily rents heavy equipment to the public rather than to affiliates, with affiliates that rent to the public not considered to use the property directly.

• Bill contains contingency provision requiring Senate Bill No. ____ or House Bill No. 5779 to be enacted for this amendment to take effect.