HB 751 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0751-00
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to ad valorem taxation of construction 2
equipment; amending s. 192.001, F.S.; revising the 3
definition of the term "inventory" to include 4
construction equipment owned by heavy equipment rental 5
dealers for certain ad valorem tax purposes; providing 6
an effective date. 7
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Be It Enacted by the Legislature of the State of Florida: 9
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Section 1. Paragraph (c) of subsection (11) of section 11
192.001, Florida Statutes, is amended to read: 12
192.001 Definitions. —All definitions set out in chapters 1 13
and 200 that are applicable to this chapter are included herein. 14
In addition, the following definitions shall apply in the 15
imposition of ad valorem taxe s: 16
(11) "Personal property," for the purposes of ad valorem 17
taxation, shall be divided into four categories as follows: 18
(c)1. "Inventory" means only those chattels consisting of 19
items commonly referred to as goods, wares, and merchandise (as 20
well as inventory) which are held for sale or lease to customers 21
in the ordinary course of business. Supplies and raw materials 22
shall be considered to be inventory only to the extent that they 23
are acquired for sale or lease to customers in the ordinary 24
course of business or will physically become a part of 25
HB 751 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0751-00
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
merchandise intended for sale or lease to customers in the 26
ordinary course of business. Partially finished products which 27
when completed will be held for sale or lease to customers in 28
the ordinary course of busines s shall be deemed items of 29
inventory. All livestock shall be considered inventory. Items of 30
inventory held for lease to customers in the ordinary course of 31
business, rather than for sale, shall be deemed inventory only 32
prior to the initial lease of such it ems. For the purposes of 33
this section, fuels used in the production of electricity shall 34
be considered inventory. 35
2. "Inventory" also means construction and agricultural 36
equipment weighing 1,000 pounds or more that is returned to a 37
dealership under a ren t-to-purchase option and held for sale to 38
customers in the ordinary course of business. This subparagraph 39
may not be considered in determining whether property that is 40
not construction and agricultural equipment weighing 1,000 41
pounds or more that is return ed under a rent-to-purchase option 42
is inventory under subparagraph 1. 43
3. Notwithstanding any provision in this section to the 44
contrary, the term "inventory," for all levies other than school 45
district levies, also means construction equipment owned by a 46
heavy equipment rental dealer that is for sale or short -term 47
rental in the normal course of business on the annual assessment 48
date. For the purposes of this chapter and chapter 196, the term 49
"heavy equipment rental dealer" means a person or entity 50
HB 751 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0751-00
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
principally engaged in the business of short -term rentals and 51
sales of equipment described under 532412 of the North American 52
Industry Classification System including attachments for the 53
equipment or other ancillary equipment. As used in this 54
subparagraph, the term "short-term rental" means the rental of a 55
heavy equipment dealer's rental property for fewer than 365 days 56
under an open-ended contract or under a contract with unlimited 57
terms. The prior short -term rental of any construction equipment 58
does not disqualify such property from qualifying as inventory 59
under this paragraph following the term of that prior short -term 60
rental. The term "inventory" does not include heavy equipment 61
rented with an operator. 62
Section 2. This act shall take effect July 1, 2022. 63