State of Washington
66th Legislature
2019 Regular Session
BySenators Cleveland, Brown, Hobbs, Walsh, and Palumbo
Read first time 01/25/19.Referred to Committee on Ways & Means.
AN ACT Relating to the classification of heavy equipment rental property as inventory; adding a new section to chapter 84.36 RCW; and creating new sections.
NEW SECTION.  Sec. 1. A new section is added to chapter 84.36 RCW to read as follows:
(1) All heavy equipment rental property owned by a heavy equipment rental property dealer is exempt from taxation.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a)(i) "Heavy equipment rental property" means any equipment that is rented by a heavy equipment rental property dealer that:
(A) Is mobile. For purposes of this subsection, "mobile" means that the heavy equipment property is not permanently affixed to real property and is moved among worksites as needed;
(B) Is used for construction or industrial applications. For the purposes of this subsection, "construction or industrial applications" means that the rental equipment is used by a heavy equipment rental property dealer in the ordinary course of their business; and
(C) Is rented without an operator.
(ii) "Heavy equipment rental property" includes, but is not limited to the following:
(A) Earthmoving equipment, including but not limited to backhoes, loaders, rollers, excavators, bulldozers, and dump trucks;
(B) Self-propelled vehicles that are not designed to be driven on the highway;
(C) Industrial electrical generation equipment;
(D) Industrial lift equipment;
(E) Industrial material handling equipment;
(F) Equipment used in shoring, shielding, and ground trenching;
(G) Portable power and HVAC generation equipment;
(H) Attachments to heavy equipment rental property, including but not limited to buckets, augers, hammers for backhoes, hoses, fittings, piping, chains, tools (such as jack hammers and cement chippers), and portable power connections;
(I) Ancillary equipment, including but not limited to generators, ground thawing equipment, fluid transfer equipment, pumping equipment, portable storage, portable fuel and water tanks, and light towers; and
(J) Equipment or vehicles not subject to vehicle license fees and not required to be registered with the department of licensing.
(iii) "Heavy equipment rental property" does not include small hand tools, chainsaws, or lawnmowers.
(b) "Heavy equipment rental property dealer" means a person principally engaged in the business of renting heavy equipment rental property. For purposes of this subsection, "principally" means that the heavy equipment rental property dealer receives more than fifty percent of the dealer's annual total revenue from the rental of heavy equipment rental property.
NEW SECTION.  Sec. 2. This act applies to taxes levied for collection in 2022 and thereafter.
NEW SECTION.  Sec. 3. The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act.
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