State Tax Issues
Equipment rental business owners often find themselves paying excessive state taxes due to a burdensome combination of taxes that essentially hit the same equipment several times over. State property taxes are a particular issue for rental businesses that often pay personal property tax on their equipment while also paying state sales tax on their rentals. Many states also add business or franchise taxes to create a situation where rental businesses essentially can be triple taxed on the same income.
In recent years, ARA has worked with members and state associations to address some of the most egregious cases of burdensome tax codes and has helped members understand the codes that are in place.