HARTFORD – State Representative Irene Haines (R-34) lauded the approval of her proposed legislation, HB 5644 ‘An Act Concerning the Depreciation Schedule for Commercial Construction Equipment’ in the Planning and Development Committee on Friday, March 29th.
“Construction equipment is not depreciated under a similar percentage scale according to age like all other business equipment but is instead given a value based on similar machines listed for sale,” said Rep. Haines. “If a farmer or a quarry bought a backhoe to use in their commercial business, it would be depreciated on a scale but if the backhoe was bought by a builder, it would not.”
If passed the legislation would change state statutes and require construction equipment to be taxed on a depreciation schedule as other business property. Currently, machinery and farm equipment is taxed on a depreciation schedule starting at 90% of the purchase price and continues to depreciate incrementally each year until it reaches 30%. Construction equipment is not depreciated and is taxed similar to motor vehicles based on market value plus set up and delivery.
During a public hearing on the legislation, East Hampton businessman David Erlandson shared in his testimony, “I feel that owners of construction equipment are singled out to pay considerably more money in personal property taxes that any other business.”
Rep. Haines concluded in her written testimony supporting the bill, “All our businesses who are our economic drivers should be taxed fairly and equitably.”
The legislation was passed unanimously by the Planning and Development Committee. The bill will be placed on the House Calendar and await further action. To learn more or to track this legislation visit www.cga.ct.gov.