Bill > S1420

This bill creates a new statute allowing heavy equipment rental dealers to charge customers a 2% recovery fee on top of the rental price, specifically to help cover tangible personal property taxes. The bill defines key terms such as "heavy equipment" (using North American Industry Classification System codes), "heavy equipment rental dealer" (a business where over 50% of annual revenue comes from equipment rentals), and "short-term rental" (rentals lasting less than 365 days). The recovery fee can only be charged to customers and is explicitly prohibited from being applied to federal government entities, federally recognized Indian tribes, state agencies, municipalities, or counties. Importantly, the bill stipulates that this recovery fee cannot be included in the taxable sales price, meaning it will be calculated separately from the base rental charge. The new law is set to take effect on July 1, 2025, and provides a mechanism for equipment rental businesses to more directly recover their property tax expenses from customers who use their equipment.