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.
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