Georgia equipment rental operators get additional tax relief

On May 2, 2022, Georgia Gov. Brian Kemp signed into law House Bill 1103, an amendment to an existing heavy-duty equipment motor vehicle code that defines weight limitations of equipment eligible for property tax relief.

Previously, equipment weighing 5,000 lbs. or more was eligible for property tax relief. The new law lowers the weight limit to 1,500 lbs., increasing the amount of equipment that is eligible for tax relief.

The new law goes into effect July 1, 2022.

This success was achieved after eight years of work by the American Rental Association (ARA), the ARA of Georgia and key equipment rental partners in the state.

“The previous bill was enacted many years ago, and since then construction equipment has become more compact and lighter in weight as a general trend; this trend will certainly continue, which is why this bill was so important,” says Jeff Lignugaris, president, Northside Tool Rental, Atlanta, who testified in front of the state legislature on behalf of the bill. “This also benefits smaller independent rental companies whose fleet mix may comprise of a greater percentage of smaller equipment. Many of our surrounding states do not charge property tax on this type of equipment at all. That puts Georgia rental companies, particularly those operating near certain state borders, at a competitive disadvantage. The representatives and senators that helped carry the bill recognized that property tax is really a hidden tax to the end user, since it clearly has to be built into rental rates. In Georgia, we are big on tax transparency and that was another selling point of this bill.”

Josh Nickell, ARA vice president, equipment segment, who previously operated a rental business in Georgia, agrees that the long-awaited amendment will have a positive impact.

“I know from being personally impacted by these property taxes in my own business that they were an undue burden that particularly impacted small and mid-size rental members, so it’s great to see those members finally receive the relief they deserve,” Nickell says. “We are so thankful for the efforts of the ARA advocacy team. They have supported members in Georgia for over eight years and remained steadfast that with advocacy efforts, a steady commitment often leads to the best results. Sometimes, these changes take a great deal of time and effort, but the payoff can be great, as it will be with this bill.”

Click here for more information and details on the law.

Questions? Contact Alysia Ryan, ARA director, government affairs, at 800-334-2177, ext. 271, or alysia.ryan@ararental.org.