Heavy-duty Equipment Motor Vehicle Taxes

Overview

Effective January 1, 1999, heavy duty motor vehicle equipment in the hands of a dealer is not taxable at that time. Instead the equipment is taxed when sold provided it is sold on or before December 20 of that year. If the equipment is sold to a government entity or to another dealer, the property is exempt. Equipment manufactured with an intended use as farm equipment is taxable to the dealer and not to the purchaser. However, equipment having an intended use other than as farm equipment is taxed to the purchaser and not the dealer even if it is sold to a farmer for use on the farm (i.e. backhoe, fork lift, etc.)


Dealer's Responsibility
Within 30 days of the last day of a month during which there is a sale of any heavy-duty equipment motor vehicle other than for resale, the dealer shall mail to the Tax Commissioner of the County where the purchaser is domiciled a statement notifying the Tax Commissioner of the sale which shall include information such as the date of the sale, the selling price, and the name and address of the purchaser.

Penalties & Interest
  • Failure To Return - 10% penalty
  • Late Payment Penalty - 10%
  • Interest - 1% per month or part there of after the due date