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) In general, this bill authorizes a heavy equipment rental company that is primarily engaged in the business of renting heavy equipment, without an operator, from a location in this State to charge a recovery fee to offset the property taxes levied on such heavy equipment. Under existing regulations, such a recovery fee would be excluded from the sales or use tax charged for the rental of the heavy equipment. (NAC 372.940) Section 13 of this bill authorizes such a heavy equipment rental company to charge a recovery fee in an amount not to exceed 2 percent of the rental charge for the rental of the heavy equipment. Under section 13, a heavy equipment rental company that charges a recovery fee is required to: (1) separately state on the invoice provided to the renter the amount of the recovery fee charged to the renter; (2) hold the recovery fee in a separate account; and (3) use the proceeds of the recovery fee to offset the property taxes levied on heavy equipment rental property. Section 14 of this bill exempts from the charging of a recovery fee the rental of any heavy equipment rental property to certain governmental entities. Section 15 of this bill requires a heavy equipment rental company to submit to the Department of Taxation an annual report stating the amount of the recovery fees collected by the heavy equipment rental company during the immediately preceding fiscal year and the amount of the property taxes levied on the heavy equipment rental property of the heavy equipment rental company for the immediately preceding fiscal year. Sections 4-10 of this bill define certain terms relating to the imposition of the recovery fee on the rental of heavy equipment rental property. Section 3 of this bill establishes the applicability of those definitions. Sections 11 and 12 of this bill establish provisions governing the retention and examination of records relevant to the recovery fee. Section 16 of this bill provides that a person who submits a false or fraudulent report concerning the recovery fee or falsifies entries in or keeps more than one set of books, records or accounts, with intent to defraud in violation of the requirement to use the recovery fees only to offset property taxes, is guilty of a gross misdemeanor.

Statutes affected:
As Introduced: 360B.480, 374.070
BDR: 360B.480, 374.070