Oklahoma does not recognize the uniqueness of the heavy equipment rental industry and currently provides no relief from the state’s onerous business personal property tax on heavy equipment rentals. Taxation of heavy equipment rentals is inefficient and creates significant compliance and administrative burdens for taxpayers. Most other states provide relief, have adopted reforms, or don’t levy the tax at all — including nearly all of Oklahoma's neighbors. Arkansas, Colorado, and Texas levy industry-supported replacement taxes or recovery fees. Missouri exempts all of the rental fleet from personal property tax, and Kansas does not tax any personal property at all.

To make Oklahoma more competitive with its neighbors, it should replace the existing business personal property tax with a recovery fee that would ease compliance but still maintain local tax revenue.

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