Heavy Equipment Rental Tax Coalition Secures Major Victory in Louisiana
During Louisiana's 2017 Regular Legislative Session, members of the Louisiana HERT Coalition were successful in helping to enact legislation that reformed the inventory tax system in Louisiana. HB 313, signed by Governor John Bel Edwards (D) in June 2017, restores the inventory tax credit to equipment rental companies operating in the state. The credit had previously been disallowed for rental companies, while still being allowed for other types of businesses.
According to John McClelland of the American Rental Association,
"In the area of rental taxes, Louisiana had been one of only 14 states that taxed business inventory without any other form of relief. This put the state at a competitive disadvantage to many neighboring states."
Now, Louisiana is competitive with surrounding states when it comes to inventory taxes, making the state a more inviting place to do business for firms operating in the industry.
The effort in Louisiana was led by the HERT Coalition but was ultimately successful due to the support of the heavy equipment rental industry as a whole. Pictured at right are industry representatives at the signing of HB 313.