The heavy equipment tax is a substitution for the property tax on short-term leased or rental heavy equipment by a company engaged in the business of leasing and/or renting heavy equipment to the general public. The tax is levied on the gross receipts of the heavy equipment rental at a rate of 1.2% for Cumberland County and an additional 0.8% if the rental location is situated in the municipal limits of Fayetteville, Eastover, Linden, Spring Lake, Stedman or Wade. This tax is independent of any taxes administered by the North Carolina Department of Revenue.
Heavy equipment is defined as earthmoving, construction, or industrial equipment that is mobile, weighs at least 1,500 pounds and meets any of the following descriptions:
- Self-Propelled Vehicle (Not designed to be driven on the highway)
- Industrial Lift Equipment
- Industrial Material Handling Equipment
- Industrial Electrical Generation Equipment
To qualify, 50% of the company’s income must be derived from the rental of qualified heavy equipment. If qualified, the company must collect the tax and file an annual application in January, which includes a detailed list of all exempted property. If your company does not qualify, you are required to annually list your heavy rental equipment and other taxable property on a Cumberland County Business Listing Form.
The customer is charged the heavy equipment tax as part of their total rental. The business collects the tax and holds it as a trustee for the county, then remits to the county quarterly on or before the last day of the month following the calendar quarter in which the tax accrues. For example, tax collected during the months of January-March must be reported and paid by April 30th.
The return may be filed by personal delivery to the office of the Tax Collector, located in the new courthouse, 117 Dick Street Suite 527, Fayetteville, or by mail to the Cumberland County Tax Collector, PO Box 449, Fayetteville, NC 28302-0449.
Returns submitted by mail shall be deemed to be filed as of the date shown on the postmark affixed by the United States Postal Service. If no date is shown on the postmark, or if the postmark is not affixed by the United States Postal Service, the return shall be deemed to be filed when received in the office of the Tax Collector. A return must be filed monthly, even if there are no taxes due!
Failure to File Return - In case of failure to file any return on the date it is due, the county shall assess a penalty equal to 5% of the amount of the tax if the failure is for not more than one month, with an additional 5% for each additional month, or fraction thereof, until the return is filed. The penalty shall not exceed 25% of the tax.
Failure to Pay Tax When Due - In the case of failure to pay any tax when due, the county shall assess a penalty equal to 10% of the tax.
PLEASE NOTE: Closing, Transferring or Selling Business - The Tax Collector must be notified forty-eight (48) hours in advance of a change in address, or ownership, or if business operations cease!
Should you have any questions or require additional information, please contact our office at 910-678-7592 or by email at .
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