Heavy Equipment Tax

Effective January 1, 2009, North Carolina General Statutes (105-275(42), 153A-156.1, 160A-215.2) 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.

A tax is imposed and levied in an amount equal to one and two-tenths % (1.2%) of the gross receipts derived from the short-term lease or rental of heavy equipment at retail for businesses located in New Hanover County and an additional eight-tenths % (.8%) if the business is also located inside the city limits of Wilmington.

A Heavy Equipment Tax Application (PDF) must be submitted to establish an account number for tax reporting purposes. Mail completed application to the New Hanover County Finance department.

For assistance completing an application or for questions regarding the heavy equipment tax application please email Jessica Berardi or call 910-798-7113.

How a Business Qualifies

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, the business would not qualify.

Heavy Equipment

The following are 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.