Nobody likes taxes, well I guess those that get to spend it may be an exception…
HB 4139 was just signed by the Governor and it is going to effect equipment rental in Oregon. Starting next year heavy equipment rental companies will begin adding a 2% tax to every rental contract. So far it appears party and event rentals will be excluded.
Something you may not know is that the owners of the equipment you rent currently pay property tax on that equipment similar to what you may be paying on your home.
Think about that tax bill for a minute, how many dollars of equipment are in the average rental stores inventory? Each piece of equipment is assessed a value each year by the County Tax Assessor too. Just our inventory has several hundred items that have to have a depreciation schedule created and updated annually as well as removing items that are sold, lost, damaged beyond repair and the new replacement items. It is a complex mess for them and us.
HB 4139 cleans all of this up and makes the tax transparent.
So, while you may not appreciate seeing that tax line item, it has already been a piece of the transaction, now you’ll just see it.
I’d prefer Oregon were like most States that treat the equipment as inventory for sale (most of it is sold eventually anyway) and the massive capital investment in rental inventory weren’t taxed at all. Knowing we’ll never see that out of our current leaders in Salem, this will at least make our job little easier.
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