Under existing law, all property of every kind and nature in this State is subject to property taxes unless the property is exempt from such taxation. (NRS 361.045) Section 1 of Article 10 of the Nevada Constitution authorizes the Legislature to exempt any personal property from taxation. Sections 5, 6 and 39 of this bill exempt from personal property taxes property, machinery and equipment held in the inventory of a business that is primarily engaged in renting or leasing heavy equipment for construction, mining or forestry or in renting consumer, commercial or industrial equipment. Instead, section 12 of this bill imposes a tax at the rate of 2 percent of the gross receipts from the rental of such property, machinery or equipment. Sections 14-17 of this bill require a heavy equipment rental company to register with the Department of Taxation, collect the tax from a person who rents heavy equipment rental property and remit the tax to the Department on a quarterly basis. Section 18 of this bill requires: (1) the Department, after deducting a certain amount from the proceeds of the tax for the costs of collecting the tax, to distribute the proceeds of the tax each calendar quarter to the county in which the property is rented; and (2) the county treasurer of each county that receives such proceeds to distribute these taxes to taxing districts in the county in amounts based on the distribution of property taxes imposed on the rental of heavy equipment rental property during Fiscal Year 2023-2024. Sections 2.5-8 of this bill define certain terms relating to the imposition of the tax on the rental of heavy equipment rental property. Section 9 of this bill requires the Department to administer the provisions of this bill establishing the tax and authorizes the Department to adopt any necessary regulations. Sections 10 and 11 of this bill establish provisions governing the retention and examination of records relevant to the tax. Sections 30 and 31 of this bill establish that a person who submits a false or fraudulent return or falsifies entries in books, records or accounts with intent to evade the tax is guilty of a gross misdemeanor, and that a person who violates any other provision governing the tax created by this bill is guilty of a misdemeanor. Section 13 of this bill exempts from the tax the gross receipts from the rental of heavy equipment rental property to certain governmental entities. Sections 19-29 and 31-38 of this bill make applicable to the tax created by this bill the same provisions governing overpayments, interest, computation of tax and delinquent payments as other taxes imposed in this State. Sections 39.3 and 39.5 of this bill establish, for Fiscal Years 2024-2025 and 2025-2026, respectively, a method for: (1) the calculation of the amount of tax that would have been paid if heavy equipment rental property were not exempt from personal property tax pursuant to section 39; and (2) the payment of an additional amount of tax by heavy equipment rental companies if the amount of the personal property tax would have been greater than the amount of the tax imposed on the gross receipts from the rental of such property. Section 39.9 of this bill makes an appropriation to the Department of Taxation for certain costs to carry out the provisions of this act. Sections 40 and 41 of this bill provide that the tax imposed on the gross receipts from the rental of heavy equipment rental property becomes effective on July 1, 2024, and that the exemption from the personal property tax for heavy equipment rental property does not apply to any taxes due for any period ending on or before June 30, 2024.

Statutes affected:
As Introduced: 360.2937, 360.300, 360.417, 360.510, 361.068
Reprint 1: 360.2937, 360.300, 360.417, 360.510, 361.068
BDR: 360.2937, 360.300, 360.417, 360.510, 361.068