Bill > SB0013

This bill establishes a new property tax reimbursement mechanism for rental businesses that own heavy equipment in Utah. The bill defines "heavy equipment" as portable, transferable equipment used in construction, earthmoving, or industrial operations, including items like cranes, generators, and self-propelled equipment. Specifically, the bill allows qualified rental businesses (those classified under certain North American Industry Classification System codes and deriving at least 51% of their revenue from heavy equipment rentals) to charge renters a 1.5% recovery fee on each rental transaction. This recovery fee must be separately stated on invoices, is not subject to sales tax, and cannot be charged to governmental entities. The collected fees must be used by the rental businesses to reimburse property taxes paid on their heavy equipment. Additionally, the bill requires the state commission to conduct a study by September 30, 2027, in coordination with county assessors and the Multicounty Appraisal Trust, to evaluate the need for potential adjustments to the recovery fee rate. The bill will take effect on January 1, 2026, providing rental businesses a new mechanism to offset their property tax expenses.

Budget and Finance

https://le.utah.gov/~2025/bills/static/SB0013.html