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Maryland heavy equipment rental stores to get property tax relief
Maryland Gov. Martin O’Malley signed in June Senate Bill 685 into law, which will impose a tax rate of 2 percent on the gross receipts from the short-term lease or rental of heavy equipment by a person whose principal business is the short-term lease or rental of heavy equipment property in Maryland. The rental company subject to the gross receipts tax would be required to collect and remit the tax by the last day of the month after the end of each quarter. In return, specified heavy equipment would no longer be subject to personal property tax.
The law will become effective Dec. 31, 2010, and bring Maryland in line with neighboring states of Pennsylvania, New Jersey, Delaware, Virginia and North Carolina, which all have similar tax treatment.
Maryland heavy construction rental fleets have been subject to personal property tax and the payment of sales tax on each rental transaction. These property taxes created considerable uncertainty and hardship for affected rental businesses because the rental fleet continuously changes in size and value, and the company was required to pay the entire tax assessment in a lump sum.
"This is a huge achievement for the ARA of Maryland. It now matches the payment of the tax with the ultimate user of the equipment. The new tax will now be directly tied to the amount of revenue generated, which will benefit both the rental store owners and the counties in the long run,” said Craig Creamer, president of ARA of Maryland. “It will also enable rental store owners to better track and plan for the now quarterly tax payments. This is a good change and one we hope includes all rental stores in the future.”
United Rentals extends partnership with “Extreme Makeover: Home Edition”
United Rentals announced that it has renewed its partnership with ABC’s “Extreme Makeover: Home Edition” for the 2010-2011 season.
The upcoming season marks the fourth consecutive year that United Rentals has served as the preferred construction equipment supplier for “Extreme Makeover,” which relies on local contractors and community volunteers to build a house in just seven days. United Rentals' integrated approach to customer service mobilizes the resources of more than 550 branches, a key benefit to “Extreme Makeover” as the show travels across the country.