Oregon | Successful 2018 Reforms
During the 2018 legislative session, Oregon lawmakers followed the recommendations of the HERT Coalition to replace the tangible personal property tax on heavy equipment rentals with a recovery fee based on the equipment’s rental price. The recovery fee is levied at a two percent rate at the time of rental and specifically excludes qualified heavy machinery from other property taxes.
The passage of this legislation (HB 4139) is a win for Oregon taxpayers and Oregon businesses. Before the enactment of HB 4139, Oregon was one of only a handful of states that levied tangible personal property tax on heavy equipment rentals without providing any type of relief. The 2018 reforms have eased compliance and made Oregon more competitive with its neighbors.
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