Washington 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, adopted reforms, or don’t levy the tax at all. Oregon and Wyoming both levy replacement taxes or recovery fees, Idaho has a partial exemption, and California has a partial exemption and levies a recovery fee.

To make Washington more competitive with its neighbors, it should repeal the property tax on heavy equipment rentals. This will reduce overall tax burdens and compliance costs for job creators in the state. 

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