Boerne, TX (PRWEB) February 11, 2012
According to John Woolard, managing partner at Morrison & Head, LP, "Recent changes to the Texas State Tax Code expands monthly and annual property tax reporting requirements for heavy equipment dealers to include heavy equipment rental and leasing companies as well."
Previously, only heavy equipment sellers were required to file the necessary inventory declarations, tax statements, and unit property tax values while equipment rental/leasing companies were exempt, but under the new rules both are subject to the same reporting requirements.
In addition to the new monthly and annual reporting requirements, the rules reduce the weight threshold necessary to qualify heavy equipment from 3,000lbs down to 1,500lbs--substantially expanding the scope of equipment that must be reported by dealers.
According to Woolard, the changes are "creating a lot of confusion and frustration for heavy equipment rental and leasing companies, resulting in increased workloads and substantial fines and penalties for non-compliance."
Heavy equipment dealers who fail to file monthly tax statements and annual inventory declarations in a timely manner will be saddled with stiff penalties which include fines of $500/month for statement violations and $1,000/month for declaration violations. A tax lien is also attached to the dealer's business personal property in order to secure payment of penalties.
Contact Morrison & Head, LP for more information on the new rules that went into effect on January 1st of this year.
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