Department of Revenue
Chapter 150
Division 307
PROPERTY SUBJECT TO TAXATION
150-307-0900
Qualified Heavy Equipment and Qualified Heavy Equipment Rental Providers - Definitions and Responsibilities
(1) Definitions set forth in ORS 307.870 are incorporated herein by reference.
(2) Qualified heavy equipment is held primarily for rent if it is publicly offered for rent for a term of less than 365 consecutive days, or offered for rent for a term of less than 365 consecutive days with an option to purchase or lease.
(3)(a) A qualified heavy equipment rental provider must be primarily engaged in the business of renting qualified heavy equipment without an operator. A heavy equipment rental provider is primarily engaged in the business of renting heavy equipment without an operator if more than 50 percent of gross revenue earned from the rental of personal property (as defined in ORS 307.020 and OAR 150-307-0030) in Oregon during the rental provider’s prior fiscal year was from the rental of heavy equipment, heavy equipment attachments, associated trailers, and other equipment and tools that:
(A) are mobile;
(B) are rented without an operator but typically require an operator for use;
(C) can be used for construction, mining, earthmoving or industrial applications.
(b) For the purpose of determining whether the minimum threshold has been met, rental revenue received from the following transactions is excluded:
(A) renting equipment with an operator;
(B) renting equipment for a single defined term of more than 365 consecutive days;
(C) renting equipment from a facility located outside of Oregon; and
(D) renting equipment to an affiliate, as defined in ORS 307.870.
(4) Any person meeting the requirements in section (3) is a qualified heavy equipment rental provider for purposes of the heavy equipment rental tax established by ORS 307.872, and must register with the Oregon Department of Revenue annually, and collect and remit heavy equipment rental tax quarterly.
(5) A person with no rental revenue from the prior fiscal year, but who expects to be primarily engaged in renting qualified heavy equipment in the next calendar year, must register as a qualified heavy equipment rental provider with the Oregon Department of Revenue in December of the current year and begin collecting and remitting heavy equipment rental tax starting January 1.
Statutory/Other Authority: ORS 305.100 & 307.872
Statutes/Other Implemented: ORS 307.870
History:
REV 4-2020, minor correction filed 04/20/2020, effective 04/20/2020
REV 30-2018, adopt filed 12/28/2018, effective 01/01/2019
REV 22-2018, temporary adopt filed 11/29/2018, effective 11/29/2018 through 04/23/2019
REV 20-2018, temporary adopt filed 10/26/2018, effective 10/26/2018 through 04/23/2019