Michigan Laws 211.1125 – Qualified heavy equipment rental personal property specific tax; levy; amount; collection and remission by qualified renter; exception; rate adjustment
Current as of: 2024 | Check for updates
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Terms Used In Michigan Laws 211.1125
- Department: means the department of treasury. See Michigan Laws 211.1123
- Eligible personal property: means personal property exempt under section 9p of the general property tax act, 1893 PA 206, MCL 211. See Michigan Laws 211.1123
- Personal property: All property that is not real property.
- Rental price: means the total amount of the consideration for renting qualified heavy equipment rental personal property, excluding any separately stated charges, fees, and costs, such as delivery and pickup fees, damage waivers, environmental mitigation fees, sales or use taxes, or insurance. See Michigan Laws 211.1123
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) Beginning January 1, 2023, in addition to all other taxes, the qualified heavy equipment rental personal property specific tax is levied on each transaction of a qualified renter for renting eligible personal property as provided in this section.
(2) The tax under this section is a state specific tax imposed directly on the customer of a qualified renter in an amount equal to 2% of the rental price of the eligible personal property net of any customer credits given at the end of the rental.
(3) A qualified renter shall collect the tax under this section as part of each rental payment made by the customer renting the eligible personal property and shall remit the tax to the department as provided in this act.
(4) The tax under this section does not apply to the rental of eligible personal property to the United States or any agency, department, administration, or political subdivision of the United States, to any federally recognized Indian tribes, to this state, to any local governmental entity in this state, or to any other public body corporate in this state.
(5) Before October 1, 2024, the department shall divide the total 2020, 2021, and 2022 property tax by the total 2020, 2021, and 2022 calculated specific tax as reported under section 9p(2)(c) of the general property tax act, 1893 PA 206, MCL 211.9p. If the result is less than 0.95 or greater than 1.05, the specific tax rate under this act for 2025 and subsequent years must equal the result multiplied by 2%, rounded to the nearest hundredth of a percent.