REQUIRES TWO-THIRDS MAJORITY VOTE (§ 15)
S.B. 196
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SENATE BILL NO. 196–SENATOR CANNIZZARO
FEBRUARY 10, 2025
____________
Referred to Committee on Revenue and
Economic Development
SUMMARY—Authorizes a heavy equipment rental company to
charge a recovery fee to offset taxes levied on certain
heavy equipment. (BDR 32-19)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; providing for the imposition,
administration, collection and enforcement of a recovery
fee to offset property taxes levied on certain heavy
equipment; providing penalties; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Under existing law, all property of every kind and nature in this State is subject 1
to property taxes unless the property is exempt from such taxation. (NRS 361.045) 2
In general, this bill authorizes a heavy equipment rental company that is primarily 3
engaged in the business of renting heavy equipment, without an operator, from a 4
location in this State to charge a recovery fee to offset the property taxes levied on 5
such heavy equipment. Sections 1, 17 and 18 of this bill clarify that such a 6
recovery fee is not included in the price of the rental of the heavy equipment for the 7
purpose of calculating the sales taxes imposed on the rental of the heavy 8
equipment. 9
Section 13 of this bill authorizes such a heavy equipment rental company to 10
charge a recovery fee in an amount equal to 2 percent of the rental charge for the 11
rental of the heavy equipment. Under section 13, a heavy equipment rental 12
company that charges a recovery fee is required to: (1) separately state on the 13
invoice provided to the renter the amount of the recovery fee charged to the renter; 14
(2) hold the recovery fee in a separate account; and (3) use the proceeds of the 15
recovery fee to offset the property taxes levied on heavy equipment rental property. 16
Section 14 of this bill exempts from the charging of a recovery fee the rental of any 17
heavy equipment rental property to certain governmental entities. 18
Section 15 of this bill requires a heavy equipment rental company to submit to 19
the Department of Taxation an annual report stating the amount of the recovery fees 20
collected by the heavy equipment rental company during the immediately 21
preceding fiscal year and the amount of the property taxes levied on the heavy 22
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equipment rental property of the heavy equipment rental company for the 23
immediately preceding fiscal year. Under section 15, if the amount of the recovery 24
fees collected by the heavy equipment rental company during the immediately 25
preceding fiscal year exceeds the taxes levied on the heavy equipment rental 26
property of the heavy equipment rental company for the immediately preceding 27
fiscal year, the heavy equipment rental company is required to pay the excess, on a 28
pro rata basis, to the county treasurer of each county that levied property taxes on 29
the heavy equipment rental property. Finally, section 15: (1) requires each county 30
treasurer receiving such a payment to apportion the payment to the State and local 31
governments in the same manner that property taxes are apportioned; and (2) 32
provides that the requirement for a heavy equipment rental company to pay excess 33
recovery fees to a county treasurer is enforced in the same manner as the payment 34
of property taxes. 35
Sections 4-10 of this bill define certain terms relating to the imposition of the 36
recovery fee on the rental of heavy equipment rental property. Section 3 of this bill 37
establishes the applicability of those definitions. 38
Sections 11 and 12 of this bill establish provisions governing the retention and 39
examination of records relevant to the recovery fee. Section 16 of this bill provides 40
that a person who submits a false or fraudulent report concerning the recovery fee 41
or falsifies entries in or keeps more than one set of books, records or accounts with 42
intent to evade the tax is guilty of a gross misdemeanor. 43
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 360B.480 is hereby amended to read as 1
follows: 2
360B.480 1. “Sales price” means the total amount of 3
consideration, including cash, credit, property and services, for 4
which personal property is sold, leased or rented, valued in money, 5
whether received in money or otherwise, and without any deduction 6
for: 7
(a) The seller’s cost of the property sold; 8
(b) The cost of materials used, labor or service cost, interest, 9
losses, all costs of transportation to the seller, all taxes imposed on 10
the seller, and any other expense of the seller; 11
(c) Any charges by the seller for any services necessary to 12
complete the sale, including any delivery charges which are not 13
stated separately pursuant to subsection 1 of NRS 360B.290 and 14
excluding any installation charges which are stated separately 15
pursuant to subsection 2 of NRS 360B.290; and 16
(d) Except as otherwise provided in subsection 2, any credit for 17
any trade-in. 18
2. The term does not include: 19
(a) Any delivery charges which are stated separately pursuant to 20
subsection 1 of NRS 360B.290; 21
(b) Any installation charges which are stated separately pursuant 22
to subsection 2 of NRS 360B.290; 23
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(c) Any credit for any trade-in which is: 1
(1) Specifically exempted from the sales price pursuant to 2
chapter 372 or 374 of NRS; and 3
(2) Stated separately pursuant to subsection 2 of 4
NRS 360B.290; 5
(d) Any discounts, including those in the form of cash, term or 6
coupons that are not reimbursed by a third party, which are allowed 7
by a seller and taken by the purchaser on a sale; 8
(e) Any interest, financing and carrying charges from credit 9
extended on the sale of personal property, if stated separately 10
pursuant to subsection 2 of NRS 360B.290; 11
(f) Any taxes legally imposed directly on the consumer which 12
are stated separately pursuant to subsection 2 of NRS 360B.290; 13
[and] 14
(g) The complimentary portion of any food, meals or 15
nonalcoholic drinks provided on a complimentary basis, in whole or 16
in part, to the employees, patrons or guests of a retailer [.] ; and 17
(h) Any recovery fee imposed pursuant to section 13 of this act 18
which is separately stated in accordance with that section. 19
3. The term includes consideration received by a seller from a 20
third party if: 21
(a) The seller actually receives consideration from a person 22
other than the purchaser and the consideration is directly related to a 23
price reduction or discount on the sale; 24
(b) The seller has an obligation to pass the price reduction or 25
discount through to the purchaser; 26
(c) The amount of the consideration attributable to the sale is 27
fixed and determinable by the seller at the time of the sale of the 28
item to the purchaser; and 29
(d) Any of the following criteria is satisfied: 30
(1) The purchaser presents a coupon, certificate or other 31
documentation to the seller to claim a price reduction or discount, 32
and the coupon, certificate or other documentation is authorized, 33
distributed or granted by a third party with the understanding that 34
the third party will reimburse any seller to whom the coupon, 35
certificate or other documentation is presented. 36
(2) The purchaser identifies himself or herself to the seller as 37
a member of a group or organization entitled to a price reduction or 38
discount. For the purposes of this subparagraph, a preferred 39
customer card that is available to any patron does not constitute 40
membership in such a group. 41
(3) The price reduction or discount is identified as a third-42
party price reduction or discount on the invoice received by the 43
purchaser or on a coupon, certificate or other documentation 44
presented by the purchaser. 45
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Sec. 2. Chapter 361 of NRS is hereby amended by adding 1
thereto a new chapter to consist of the provisions set forth as 2
sections 3 to 16, inclusive, of this act. 3
Sec. 3. As used in sections 3 to 16, inclusive, of this act, 4
unless the context otherwise requires, the words and terms defined 5
in sections 4 to 10, inclusive, of this act have the meanings 6
ascribed to them in those sections. 7
Sec. 4. 1. “Affiliate” means a person who, directly or 8
indirectly, through one or more persons or intermediaries, 9
controls, is controlled by or is under common control with a 10
specified person. 11
2. As used in this section, “control” means: 12
(a) Direct or indirect ownership, control or possession of 50 13
percent or more of the equity ownership of a person; or 14
(b) Possession, direct or indirect, of the power to direct or 15
cause the direction of the management and policies of a person, 16
whether through the ownership of voting securities, by contract or 17
through other means. 18
Sec. 5. 1. “Heavy equipment rental company” means a 19
person who is classified under 532412 or 532310 of the North 20
American Industry Classification System, and is primarily 21
engaged in the business of renting heavy equipment rental 22
property, without an operator, to the public from a location in this 23
State. 24
2. The term does not include a person who is: 25
(a) Engaged in the business of renting heavy equipment rental 26
property primarily to related persons or affiliates who operate or 27
drive, or both operate and drive, such equipment, regardless of the 28
NAICS code that applies to the business; or 29
(b) Primarily engaged in the business of renting heavy 30
equipment rental property with an operator. 31
Sec. 6. “Heavy equipment rental property” means property, 32
machinery and equipment held in the inventory of a heavy 33
equipment rental company for sale or rental in the regular course 34
of business. The term includes, without limitation, property, 35
machinery and equipment that is customarily used or designed for 36
construction and industrial purposes, including, without 37
limitation, earthmoving equipment, lift equipment, material 38
handling equipment, pumps, generators, compressors, portable 39
power equipment, heating, ventilation and air conditioning 40
equipment, portable offices, containers, tank trailers and self-41
propelled equipment. 42
Sec. 7. “North American Industry Classification System” or 43
“NAICS” means the 2022 North American Industry Classification 44
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System, as published by the Bureau of the Census of the United 1
States Department of Commerce. 2
Sec. 8. “Rent,” “rental” or “renting” means entering into an 3
agreement with a heavy equipment rental company for the use of 4
heavy equipment rental property in exchange for consideration for 5
a period: 6
1. Not to exceed 365 days; or 7
2. That is open-ended under the terms of the rental contract 8
with no specified end date. 9
Sec. 9. 1. “Rental charge” means the total amount of 10
consideration, including, without limitation, cash, credit, property 11
and services, charged by a heavy equipment rental company for 12
the rental of heavy equipment rental property, valued in money, 13
whether received in money or otherwise, and without any 14
deduction for: 15
(a) The cost of the heavy equipment rental property to the 16
heavy equipment rental company; 17
(b) The cost of materials used, labor or service cost, interest 18
paid, losses, the cost of transportation to the heavy equipment 19
rental company, taxes imposed on the heavy equipment rental 20
company or any other expense of the heavy equipment rental 21
company; and 22
(c) Any charges by the heavy equipment rental company for 23
any services necessary to complete the rental, including, without 24
limitation, any delivery charges which are not stated separately 25
and any installation charges which are not stated separately. 26
2. The term does not include: 27
(a) Any fees or charges for the delivery or transportation of 28
heavy equipment rental property which are stated separately; 29
(b) Any installation or other service charges which are stated 30
separately; 31
(c) Any discounts, including, without limitation, those in the 32
form of cash, term or coupons that are not reimbursed by a third 33
party, which are allowed by the heavy equipment rental company 34
and taken by the renter on a rental; 35
(d) Any interest, financing or carrying charges from credit 36
extended on the rental of heavy equipment rental property, if 37
stated separately; 38
(e) Any taxes legally imposed directly on the renter which are 39
stated separately; and 40
(f) Any other separately stated charges or fees. 41
Sec. 10. “Renter” means a person who rents heavy 42
equipment rental property from a heavy equipment rental 43
company in this State. 44
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Sec. 11. 1. Each person responsible for maintaining the 1
records of a heavy equipment rental company shall: 2
(a) Keep such records as may be necessary to determine the 3
compliance of the heavy equipment rental company with the 4
provisions of section 15 of this act; 5
(b) Preserve such records for 5 years or until any litigation or 6
prosecution related to compliance with section 15 of this act is 7
finally determined, whichever is longer; and 8
(c) Make such records available for inspection by the 9
Department upon demand at reasonable times during regular 10
business hours. 11
2. The Department may adopt regulations specifying the types 12
of records which must be kept to determine the compliance of a 13
heavy equipment rental company with the provisions of section 15 14
of this act. 15
Sec. 12. To verify the accuracy of any report filed pursuant 16
to section 15 of this act or, if no such report is filed, to determine 17
the compliance of a heavy equipment rental company with section 18
15 of this act, the Department, or any person authorized in writing 19
by the Department, may examine the books, papers and records of 20
any person who is required to comply with section 15 of this act. 21
Sec. 13. 1. Except as otherwise provided in section 14 of 22
this act, a heavy equipment rental company may impose a recovery 23
fee in an amount equal to 2 percent of the rental charge for the 24
rental of heavy equipment rental property to a renter. 25
2. The amount of any recovery fee imposed pursuant to 26
subsection 1 must be separately stated on an invoice provided to a 27
renter of heavy equipment rental property. 28
3. A heavy equipment rental company that imposes a recovery 29
fee pursuant to subsection 1 shall: 30
(a) Hold the amount of all recovery fees collected in a separate 31
account; and 32
(b) Use the money in the separate account only to offset any 33
taxes imposed pursuant to this chapter on heavy equipment rental 34
property and make any payment required by section 15 of this act. 35
Sec. 14. A heavy equipment rental company shall not charge 36
a recovery fee pursuant to section 13 of this act for the rental of 37
any heavy equipment rental property to: 38
1. The United States, its unincorporated agencies and 39
instrumentalities; 40
2. Any incorporated agency or instrumentality of the United 41
States wholly owned by the United States or by a corporation 42
wholly owned by the United States; 43
3. The State of Nevada, its unincorporated agencies and 44
instrumentalities; 45
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4. Any county, city, district or other political subdivision of 1
this State; and 2
5. Any other person or entity that this State is prohibited from 3
taxing under the United States Constitution, laws or treaties of the 4
United States or the Nevada Constitution. 5
Sec. 15. 1. Not later than August 15 of each calendar year, 6
a heavy equipment rental company that imposes a recovery fee 7
pursuant to section 13 of this act shall file with the Department, 8
on a form prescribed by the Department, a report which separately 9
states the amount of: 10
(a) The recovery fees collected by the heavy equipment rental 11
company during the immediately preceding fiscal year; and 12
(b) The taxes imposed pursuant to this chapter on the heavy 13
equipment rental property of the heavy equipment rental company 14
for the immediately preceding fiscal year. 15
2. If, based on the report filed pursuant to subsection 1, the 16
amount of the recovery fees collected by the heavy equipment 17
rental company during the immediately preceding fiscal year 18
exceeds the amount of taxes imposed pursuant to this chapter on 19
the heavy equipment rental property of the heavy equipment rental 20
company for the immediately preceding fiscal year, the heavy 21
equipment rental company must, not later than 30 days after the 22
due date of the report, pay a pro rata amount of the excess to the 23
county treasurer of each county in this State that imposed taxes 24
pursuant to this chapter on the heavy equipment rental property of 25
the heavy equipment rental company for the immediately 26
preceding fiscal year. The amount paid to the county treasurer of 27
a county pursuant to this subsection must be based on the amount 28
of taxes imposed pursuant to this chapter by the county on the 29
heavy equipment rental property of the heavy equipment rental 30
company for the immediately preceding fiscal year in relation to 31
the total amount of taxes imposed pursuant to this chapter 32
statewide on the heavy equipment rental property of the heavy 33
equipment rental company for the immediately preceding fiscal 34
year. 35
3. A county treasurer who receives a payment pursuant to 36
subsection 2 shall apportion the amount of the money paid in the 37
same manner that taxes imposed pursuant to this chapter are 38
apportioned pursuant to NRS 361.745 and 361.755. 39
4. Any late payment of an amount required to be paid by 40
subsection 2 is subject to the same interest and penalties as a late 41
payment of any tax imposed pursuant to this chapter, and any 42
amount required to be paid by subsection 2 may be collected in the 43
same manner as any tax imposed pursuant to this chapter. 44
Sec. 16. 1. A person shall not: 45
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(a) Make, cause to be made or permit to be made any false or 1
fraudulent report or false statement in any report, with intent to 2
defraud or to evade payment of any amount required to be paid 3
pursuant to section 15 of this act; 4
(b) Make, cause to be made or permit to be made any false 5
entry in books, records or accounts with intent to defraud or to 6
evade the payment of any amount required to be paid pursuant to 7
section 15 of this act; or 8
(c) Keep, cause to be kept or permit to be kept more than one 9
set of books, records or accounts with intent to defraud or to evade 10
the payment of any amount required to be paid pursuant to section 11
15 of this act. 12
2. Any person who violates the provisions of subsection 1 is 13
guilty of a gross misdemeanor. 14
Sec. 17. Chapter 372 of NRS is hereby amended by adding 15
thereto a new section to read as follows: 16
1. In administering the provisions of this chapter, a recovery 17
fee imposed pursuant to section 13 of this act must be deemed not 18
to be included in the sales price for the rental of heavy equipment 19
rental property to a renter. 20
2. As used in this section: 21
(a) “Heavy equipment rental property” has the meaning 22
ascribed to it in section 6 of this act. 23
(b) “Rental” has the meaning ascribed to it in section 8 of this 24
act. 25
(c) “Renter” has the meaning ascribed to it in section 10 of 26
this act. 27
Sec. 18. NRS 374.070 is hereby amended to read as follows: 28
374.070 1. “Sales price” means the total amount for which 29
tangible property is sold, valued in money, whether paid in money 30
or otherwise, without any deduction on account of any of the 31
following: 32
(a) The cost of the property sold. 33
(b) The cost of the materials used, labor or service cost, interest 34
charged, losses, or any other expenses. 35
(c) The cost of transportation of the property before its purchase. 36
2. The total amount for which property is sold includes all of 37
the following: 38
(a) Any services that are a part of the sale. 39
(b) Any amount for which credit is given to the purchaser by the 40
seller. 41
3. “Sales price” does not include any of the following: 42
(a) Cash discounts allowed and taken on sales. 43
(b) The amount charged for property returned by customers 44
when the entire amount charged therefor is refunded in cash or 45
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credit, except that this exclusion does not apply in any instance 1
when the customer, in order to obtain the refund, is required to 2
purchase other property at a price greater than the amount charged 3
for the property that is returned. 4
(c) The amount charged for labor or services rendered in 5
installing or applying the property sold. 6
(d) The amount of any tax, not including any manufacturers’ or 7
importers’ excise tax, imposed by the United States upon or with 8
respect to retail sales, whether imposed upon the retailer or the 9
consumer. 10
(e) The amount of any tax imposed by the State of Nevada upon 11
or with respect to the storage, use or other consumption of tangible 12
personal property purchased from any retailer. 13
(f) The amount of any allowance against the selling price given 14
by a retailer for the value of a used vehicle or vessel which is taken 15
in trade on the purchase of another vehicle or vessel. 16
(g) The amount of a recovery fee imposed pursuant to section 17
13 of this act which is separately stated in accordance with that 18
section. 19
Sec. 19. This act becomes effective on July 1, 2025. 20
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