Learn about the Heavy Equipment gross receipts tax collected by our department. Find out what heavy equipment is and if you are required to file. See filing requirements and returned payment penalties.
Overview
Effective January 1, 2009, North Carolina General Statutes designated heavy equipment on which a gross receipts tax may be imposed, a special class of property. The classification refers to heavy equipment that is offered at retail for short-term lease or rental and is owned or leased by a person (company) engaged in the business of leasing or renting heavy equipment to the general public.
View North Carolina General Statutes: 105-275(42a), 153A-156.1
General Filing Information
A Heavy Equipment Tax Application must be submitted to establish an account number for tax reporting purposes. Email completed application to taxhelp@wake.gov or mail to:
Wake County Tax Administration
Heavy Equipment Division
P.O. Box 2719
Raleigh NC 27602-2719
For assistance in completing an application or questions regarding the Heavy Equipment Tax, please call our office at 919-856-5999 or email taxhelp@wake.gov.
Important information on your PIN
Once a tax account number is established, a letter containing your account's PIN code will be mailed to you. You will be asked to provide this PIN when calling or visiting our office to discuss account information. The PIN is also required to complete online filing and electronic payments. A PIN may also be obtained by calling our office at 919-856-5999.
- A report must be filed each quarter on or before the last business day of the month following the quarter in which the tax accrues (quarters end on March 31, June 30, September 30 and December 31).
- Reports must be filed online or postmarked by the U.S. Postal Service by the last business day of the month following the month in which the tax accrues. Metered mail is considered to be received as of the date the remittance is received.
- The tax shown to be due must be paid with the report or penalties will be charged. See NCGS 105.236 for information regarding penalties.
- If remitted by mail, your check or money order should be made payable to the Wake County Department of Tax Administration. One check for all locations will be accepted; however, a separate report for each location must be filed.
- If you do not owe any tax for a quarter, you must file a "Zero Due Return" using the online system or mail a report showing "No Tax Due" to our office.
- As provided in NCGS 153A-148.1, a return filed with the Wake County Department of Tax Administration shall not be considered a public record, and information contained in a return may not be disclosed except as required by law.
Return Check Penalties
Penalty for Bad Checks- When the bank upon which any uncertified check tendered to the Department of Revenue in payment of any obligation due to the Department returns the check because of insufficient funds or the nonexistence of an account of the drawer, the Secretary shall assess a penalty equal to ten percent (10%) of the check, subject to a minimum of one dollar ($1.00) and a maximum of one thousand dollars ($1,000). This penalty does not apply if the Secretary finds that, when the check was presented for payment, the drawer of the check had sufficient funds in an account at a financial institution to pay the check and, by inadvertence, the drawer of the check failed to draw the check on the account that had sufficient funds.
Penalty for Bad Electronic Funds Transfer- When an electronic funds transfer cannot be completed due to insufficient funds or the nonexistence of an account of the transferor, the Secretary shall assess a penalty equal to ten percent (10%) of the amount of the transfer, subject to a minimum of one dollar ($1.00) and a maximum of one thousand dollars ($1,000). This penalty may be waived by the Secretary in accordance with G.S. 105-237.
For more information on return check penalties, view NCGS 105-236.
Heavy Equipment Tax FAQ
What does this special classification mean?
A business having heavy equipment on which a gross receipts tax may be imposed does not have to annually report said equipment for business personal property taxation; however, the business may or may not be required to charge a Heavy Equipment Gross Receipts Tax on the rental or lease of said equipment depending on their taxing jurisdiction.
How does a business qualify?
To qualify as a principal business of short-term lease or rental, more than 50% of the company's income must be derived from the rental of qualified heavy equipment. For example, if the total company receipts from all sources are $1,000,000 and the receipts from the rental of qualified heavy equipment are $450,000; a business would not qualify.
What is the definition of short-term lease or rental, and what are some business examples?
Short-term lease or rental applies to a lease or rental that is made under a written agreement to lease or rent property to the same person for a period of less than 365 continuous days.
Subject business will include, but are not limited to, the following:
- Equipment rental agencies
- Equipment sales dealers
- Any other establishment, place of business or enterprise maintaining facilities that rent heavy equipment as the principal part of their business
What is considered qualified heavy equipment?
Earthmoving, construction or industrial equipment that is mobile, weighs at least 1,500 pounds, and meets any of the descriptions listed below. The term includes an attachment for heavy equipment, regardless of the weight of the attachment.
- It is a self-propelled vehicle that is not designed to be driven on a highway.
- It is industrial lift equipment, industrial material-handling equipment, industrial electrical-generation equipment, or a similar piece of industrial equipment.
My business qualifies to impose a heavy equipment tax. What do I need to do?
If your business meets the requirements to impose the tax and is located in the taxing jurisdiction of the City of Raleigh or the town of Apex, Cary, Garner, Knightdale, Morrisville or Zebulon, you are required to charge a Heavy Equipment Gross Receipts Tax. Currently, these are the only jurisdictions to have implemented a heavy equipment tax. Businesses that qualify to charge the Heavy Equipment Gross Receipts Tax are not required to list the equipment on their Business Property Tax Listing form for the same period as the tax is charged; however, you are required to list other remaining taxable business property such as furniture, fixtures, computers, etc.
If your business meets the requirements to impose the tax but is not located in one of the above-listed jurisdictions, you cannot charge the Heavy Equipment Gross Receipts Tax, but your qualified equipment will remain exempt from business personal property taxation. You are, however, required to list other remaining taxable business property such as furniture, fixtures, computers, etc.
(Note: Wake County has not adopted a resolution to implement the Heavy Equipment Gross Receipts Tax)
My business does not qualify to impose the tax. What do I need to do?
You must annually list your heavy rental equipment and other taxable property for business personal property taxation.
What should I do if I am required to charge the tax?
If you are required to charge the tax, you must submit an annual Heavy Equipment Tax Application with the Wake County Tax Administration for acceptance into this group. Once your application is processed and approved, you will receive preprinted tax return coupons to use for remitting the tax. Taxes are to be remitted on a quarterly basis to:
Wake County Tax Administration
PO Box 2719
Raleigh NC 27602-2719
(Note: Businesses qualified to impose the tax that are not located within a taxing jurisdiction having implemented this tax, do not need to complete an annual application for the Heavy Equipment Gross Receipts Tax.)
Who should I contact for additional assistance?
Please email your questions to taxhelp@wake.gov or call 919-856-5999.
