Legislative Issues in Texas

Rent heavy equipment? Then property tax laws affect you!

Did you know that Texas law, with respect to the method of assessing and paying personal property tax on heavy equipment, changed in 2013. These documents provide a user's manual that explains who is subject to the tax, the definition of heavy equipment and the method for determining a business's tax rate, as well as instructions for collecting and remitting the Unit Property Tax required. As always, check with your tax professional to see how this law applies to your business.

 

Opinion in Sunstate Equipment Co., LLC vs. Glenn Hegar

On April 3, 2020, the Texas Supreme Court issued its opinion in Sunstate Equipment Co., LLC vs. Glenn Hegar, Comptroller of Public Accounts, et.al. This case involved Sunstate Equipment and the costs they deducted from their franchise tax assessments.

 The Court ruled against Sunstate, concluding that neither section 171.1012(k-1) nor section 171.1012(i) authorizes Sunstate to subtract as COGS any of its costs associated with the delivery and pick up of its rental equipment.

 

Questions? Contact Chuck Bailey, the American Rental Association/Texas Rental Association lobbyist,
at 512-457-8687

 

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