Md. Tax Policy Changes For Heavy Equipment Rental

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.)


More From CBS Baltimore

Track Weather On The Go With Our App!
Your Podcast Network

Listen Live