PA 18-136—sHB 5591

Finance, Revenue and Bonding Committee

AN ACT CONCERNING THE MACHINERY RENTAL SURCHARGE RATE, CERTAIN MUNICIPAL FILING FEES AND THE PROPERTY TAX EXEMPTION FOR CERTAIN PAINT MIXING MACHINERY AND EQUIPMENT

SUMMARY: This act makes the following tax and fee related changes:

1. increases the fees municipalities must charge for various permits and filings;

2. increases, from 1.5% to 2.75%, the surcharge on rental machinery; and

3. requires retailers claiming a property tax exemption for machinery and equipment used to color or mix paint for in-state sales to apply to local assessors, on a form the assessors prescribe, annually by November 1 ( 2).

EFFECTIVE DATE: July 1, 2018, and the rental surcharge is applicable to machinery rented on or after July 1, 2018.

3-6 — MUNICIPAL FEE INCREASES

The act increases the fees municipalities must charge for various permits and filings, as shown in Table 1.

Table 1: Municipal Fee Increases

Fee Description

Prior

Law

Act

Liquor permit filing

$2

$20

Filing any document with town clerk

5

10

Survey or map filing and indexing

10

20

Subdivision survey or map filing and indexing

20

30

Notary public: commission and oath recording

10

20

Notary public: character certification

2

5

Marriage license (including surcharge)

30

50

Burial or removal, transit, and burial permit

3

5

Cremation permit

3

5

1 — RENTAL MACHINERY SURCHARGE

By law, the state imposes a surcharge on certain machinery rentals and requires rental companies to annually remit to the Department of Revenue Services the amount of the surcharge collected that exceeds the local property taxes and Department of Motor Vehicles registration and titling fees they paid on the equipment. The act increases the surcharge from 1.5% to 2.75%.

By law, the surcharge applies to (1) businesses generating at least 51% of their total annual revenue from rentals, excluding retail or wholesale sales of rental equipment, and (2) rentals for less than 365 days or for an undefined period under an open-ended contract.