Heavy Equipment Owners Excise Tax

Issued under authority of Public Act 35 of 2022

• Beginning January 1, 2023, this tax is levied on each transaction of a qualified renter for renting eligible personal property.
• Qualified renter is imposed a 2% tax of the rental price directly on the customer that rents qualified heavy equipment.
• Qualified renter collects the tax as part of the rental payment made by the customer and remits return and payment to the Michigan Department of Treasury.
• Returns are due quarterly as follows: April 30th, July 31st, October 31st, and January 31st.
• Complete a separate Form 5815 and Form 5815 Worksheet for each unique qualified renter business location real parcel number.
• Form 5815 and Form 5815 Worksheet must be remitted via email to: Treas-HeavyEquip-Customer-Support@michigan.gov.

To claim the exemption, eligible taxpayers need to first file Form 5819 and 5819 Worksheet with the assessor of the local unit in which the qualified renter business location is established.

• This is the location where the rental equipment is stored when it is not rented out.
• The form must have been postmarked before February 21, 2025, to be considered timely.
• If a taxpayer misses the deadline, they may file directly with the March Board of Review of the township/city. They should contact the assessor to determine the best way of doing that.

A qualified renter who does not submit payment in full by the applicable deadline is subject to a penalty of 3% per month calculated from the applicable deadline on the unpaid balance for each month payment is not made in full. The calculation of penalty is not prorated based on the date payment is received (e.g., for the April 30th quarterly deadline, any payment received any day in May would be subject to a 3% penalty, and any payment received any day in June would be subject to a 6% penalty).

For the qualified renter’s first assessment year, the penalty must be waived if the qualified renter submits a completed statement along with full payment of the tax levied under section 5 within 30 days after the issuance of the department’s notice.

eCheck is an electronic funds transfer using your checking account of savings account. There is no fee to use this payment option.

By making an eCheck payment, you will be authorizing the Michigan Department of Treasury to initiate a direct transfer of funds from your financial institution.

Payments can also be made by check or money order. Mail payment with a completed Form 5851 Payment Voucher to:

Michigan Department of Treasury
P.O. Box 30830
Lansing, MI 48909