ANNAPOLIS, Md. (AP) — Maryland businesses that rent or lease heavy equipment such as backhoes will soon be able to spread out their tax payments.

Beginning Friday, a one-time personal property tax on the equipment will be replaced with a different tax that is spread out over a year.

John McClelland, vice president for government affairs for the American Rental Association, says the change to a 2 percent gross receipts tax will make it easier for rental companies to manage their cash flow because they will be able to pay taxes as transactions occur instead of all at once.

The change brings Maryland in line with neighboring states that have similar policies.

(Copyright 2010 by The Associated Press. All Rights Reserved.)


Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Baltimore

Track Weather On The Go With Our App!
CBS All Access

Watch & Listen LIVE