Unlike most other states in the nation, Nevada doesn’t provide any relief from the state’s onerous business tangible personal property (TPP) tax on heavy equipment rentals. Nearly all other states in the region provide relief, have adopted reforms, or don’t levy the tax at all. Arizona, California, Idaho, and Oregon exempt all or part of the rental fleet as inventory or levy industry-supported replacement taxes or replacement fees that have lessened the administrative and compliance burdens of the tangible personal property taxes they replaced. Additionally, several other states are poised to consider reforms to their business TPP tax regimes in 2019.

To make Nevada more competitive, it should treat mobile heavy equipment rental property (that is ultimately sold at retail) as inventory, similar to other states. This will reduce overall tax burdens and compliance costs for job creators in the state. An alternative tax could be imposed to replace any loss of revenue.

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