Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 307 - PROPERTY SUBJECT TO TAXATION
Section 150-307-0915 - Heavy Equipment Rental Tax Exemptions

(1) Definitions set forth in ORS 307.870 are incorporated herein by reference.

(2) Qualified equipment and tools rented directly to the United States (U.S.) federal government or any of its agencies or instrumentalities are exempt from the heavy equipment rental tax.

(3) The qualified heavy equipment rental provider must document the tax-exempt nature of rentals made to federal government agencies or instrumentalities and retain such documentation in its records.

Example 1: The U.S. Forest Service rents a bulldozer from DCA Heavy Equipment Rental Company to assist in fighting a forest fire. Because the Forest Service rents the bulldozer directly from DCA Heavy Equipment Rental Company, and pays for the rental, the rental is exempt from the rental tax. DCA Heavy Equipment Rental must document the tax-exempt nature of the rental by keeping a copy of the U.S. credit card receipt, check, voucher, or copy of documentation that clearly indicates payment was made by the United States government.

Example 2: Eckington Contractors provides fire and aviation support services to the U.S. Forest Service and is currently working on a major project for the Forest Service. In order to complete this project, Eckington Contractors rents a bulldozer from DCA Heavy Equipment Rental Company. While the bulldozer will be used for the U.S. Forest Service project, the rental agreement was signed and paid for by Eckington Contractors. As such, the rental is not exempt from the tax and DCA Heavy Equipment Rental Company must collect the heavy equipment rental tax due.