Michigan simplified their taxation of heavy equipment rentals by exempting these rentals from personal property tax and imposing a 2 percent excise tax on rental transactions of heavy equipment. Michigan defines heavy equipment as “construction, earth-moving, and industrial equipment, as well as attachments to such equipment, that can be moved and rented by consumers. It does not include handheld tools or equipment used for industry-specific uses such as oil and gas exploration.” According to Governor Gretchen Whitmer, these bills will help ensure that Michigan can keep fixing their roads with the right mix and materials. Additionally, the revenue collected from the excise tax will contribute to the qualified heavy equipment rental personal property exemption reimbursement fund created by the bill. (State of Michigan, H.B. 4833, H.B. 4834, effective after December 31, 2022, effective January 1, 2023)