Heavy equipment rental tax

What is heavy equipment rental tax?

It is a tax paid by the consumer on the rental of heavy equipment rental property, from heavy equipment rental dealer. See Definitions.

What is heavy equipment rental property?

Heavy equipment rental property is:

• Mobile. Equipment may not be permanently affixed to real property and may be moved among worksites if needed.
• Customarily used for construction, earthmoving, or industrial applications. This includes the constructing of new buildings or other structures, or the repairing, remodeling, or expansion of existing buildings or other structures, under, upon, or above real property; the repositioning of terrain using vehicles or vehicles or self-propelled equipment; and manufacturing or processing raw materials or other ingredients or components into new articles of tangible personal property.
• Rented without an operator.

How do I pay the tax?

The heavy equipment rental property dealer will collect the tax from the consumer, and report and pay the tax to the Department of Revenue on the dealer’s excise tax return.

What is the rental tax rate?

The rate is 1.25% of the rental price on each heavy equipment rental property rented by a consumer within the state of Washington. The heavy equipment rental tax is in addition to the retail sales tax.

What are the funds used for?

50% will be deposited into the Motor Vehicle Fund per RCW 46.68.070.

50% will be deposited into the Multimodal Transportation Account per RCW 47.66.070.

Definitions:

“Heavy equipment rental dealer” means a person “principally” engaged in the business of renting heavy equipment rental property. “Principally” means that the dealer receives more than 50% of the dealer’s annual total revenue from the rental of heavy equipment rental property. See RCW 84.36.597.