Nevada 2025 Regular Session

Nevada Senate Bill SB196 Compare Versions

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Old	New	Differences
1	1
2	2	(Reprinted with amendments adopted on April 17, 2025)
3	3	FIRST REPRINT S.B. 196
4	4
5	5	- SB196_R1
6	6
7	7	SENATE BILL NO. 196–SENATOR CANNIZZARO
8	8
9	9	FEBRUARY 10, 2025
10	10	____________
11	11
12	12	Referred to Committee on Revenue and
13	13	Economic Development
14	14
15	15	SUMMARY—Authorizes a heavy equipment rental company to
16	16	charge a recovery fee to offset taxes levied on certain
17	17	heavy equipment. (BDR 32-19)
18	18
19	19	FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
20	20	Effect on the State: Yes.
21	21
22	22	~
23	23
24	24	EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
25	25
26	26
27	27	AN ACT relating to taxation; providing for the imposition,
28	28	administration, collection and enforcement of a recovery
29	29	fee to offset property taxes levied on certain heavy
30	30	equipment; providing penalties; and providing other
31	31	matters properly relating thereto.
32	32	Legislative Counsel’s Digest:
33	33	Under existing law, all property of every kind and nature in this State is subject 1
34	34	to property taxes unless the property is exempt from such taxation. (NRS 361.045) 2
35	35	In general, this bill authorizes a heavy equipment rental company that is primarily 3
36	36	engaged in the business of renting heavy equipment, without an operator, from a 4
37	37	location in this State to charge a recovery fee to offset the property taxes levied on 5
38	38	such heavy equipment. Under existing regulations, such a recovery fee would be 6
39	39	excluded from the sales or use tax charged for the rental of the heavy equipment. 7
40	40	(NAC 372.940) 8
41	41	Section 13 of this bill authorizes such a heavy equipment rental company to 9
42	42	charge a recovery fee in an amount not to exceed 2 percent of the rental charge for 10
43	43	the rental of the heavy equipment. Under section 13, a heavy equipment rental 11
44	44	company that charges a recovery fee is required to: (1) separately state on the 12
45	45	invoice provided to the renter the amount of the recovery fee charged to the renter; 13
46	46	(2) hold the recovery fee in a separate account; and (3) use the proceeds of the 14
47	47	recovery fee to offset the property taxes levied on heavy equipment rental property. 15
48	48	Section 14 of this bill exempts from the charging of a recovery fee the rental of any 16
49	49	heavy equipment rental property to certain governmental entities. 17
50	50	Section 15 of this bill requires a heavy equipment rental company to submit to 18
51	51	the Department of Taxation an annual report stating the amount of the recovery fees 19
52	52	collected by the heavy equipment rental company during the immediately 20
53	53	preceding fiscal year and the amount of the property taxes levied on the heavy 21
54	54	– 2 –
55	55
56	56
57	57	- SB196_R1
58	58	equipment rental property of the heavy equipment rental company for the 22
59	59	immediately preceding fiscal year. 23
60	60	Sections 4-10 of this bill define certain terms relating to the imposition of the 24
61	61	recovery fee on the rental of heavy equipment rental property. Section 3 of this bill 25
62	62	establishes the applicability of those definitions. 26
63	63	Sections 11 and 12 of this bill establish provisions governing the retention and 27
64	64	examination of records relevant to the recovery fee. Section 16 of this bill provides 28
65	65	that a person who submits a false or fraudulent report concerning the recovery fee 29
66	66	or falsifies entries in or keeps more than one set of books, records or accounts, with 30
67	67	intent to defraud in violation of the requirement to use the recovery fees only to 31
68	68	offset property taxes, is guilty of a gross misdemeanor. 32
69	69
70	70
71	71	THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
72	72	SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
73	73
74	74	Section 1. (Deleted by amendment.) 1
75	75	Sec. 2. Chapter 361 of NRS is hereby amended by adding 2
76	76	thereto the provisions set forth as sections 3 to 16, inclusive, of this 3
77	77	act. 4
78	78	Sec. 3. As used in sections 3 to 16, inclusive, of this act, 5
79	79	unless the context otherwise requires, the words and terms defined 6
80	80	in sections 4 to 10, inclusive, of this act have the meanings 7
81	81	ascribed to them in those sections. 8
82	82	Sec. 4. 1. “Affiliate” means a person who, directly or 9
83	83	indirectly, through one or more persons or intermediaries, 10
84	84	controls, is controlled by or is under common control with a 11
85	85	specified person. 12
86	86	2. As used in this section, “control” means: 13
87	87	(a) Direct or indirect ownership, control or possession of 50 14
88	88	percent or more of the equity ownership of a person; or 15
89	89	(b) Possession, direct or indirect, of the power to direct or 16
90	90	cause the direction of the management and policies of a person, 17
91	91	whether through the ownership of voting securities, by contract or 18
92	92	through other means. 19
93	93	Sec. 5. 1. “Heavy equipment rental company” means a 20
94	94	person who is classified under 532412 or 532310 of the North 21
95	95	American Industry Classification System, and is primarily 22
96	96	engaged in the business of renting heavy equipment rental 23
97	97	property, without an operator, to the public from a location in this 24
98	98	State. 25
99	99	2. The term does not include a person who is: 26
100	100	(a) Engaged in the business of renting heavy equipment rental 27
101	101	property primarily to related persons or affiliates who operate or 28
102	102	drive, or both operate and drive, such equipment, regardless of the 29
103	103	NAICS code that applies to the business; or 30
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105	105
106	106
107	107	- SB196_R1
108	108	(b) Primarily engaged in the business of renting heavy 1
109	109	equipment rental property with an operator. 2
110	110	Sec. 6. “Heavy equipment rental property” means property, 3
111	111	machinery and equipment held in the inventory of a heavy 4
112	112	equipment rental company for sale or rental in the regular course 5
113	113	of business. The term includes, without limitation, property, 6
114	114	machinery and equipment that is customarily used or designed for 7
115	115	construction and industrial purposes, including, without 8
116	116	limitation, earthmoving equipment, lift equipment, material 9
117	117	handling equipment, pumps, generators, compressors, portable 10
118	118	power equipment, heating, ventilation and air conditioning 11
119	119	equipment, portable offices, containers, tank trailers and self-12
120	120	propelled equipment. 13
121	121	Sec. 7. “North American Industry Classification System” or 14
122	122	“NAICS” means the 2022 North American Industry Classification 15
123	123	System, as published by the Bureau of the Census of the United 16
124	124	States Department of Commerce. 17
125	125	Sec. 8. “Rent,” “rental” or “renting” means entering into an 18
126	126	agreement with a heavy equipment rental company for the use of 19
127	127	heavy equipment rental property in exchange for consideration for 20
128	128	a period: 21
129	129	1. Not to exceed 365 days; or 22
130	130	2. That is open-ended under the terms of the rental contract 23
131	131	with no specified end date. 24
132	132	Sec. 9. 1. “Rental charge” means the total amount of 25
133	133	consideration, including, without limitation, cash, credit, property 26
134	134	and services, charged by a heavy equipment rental company for 27
135	135	the rental of heavy equipment rental property, valued in money, 28
136	136	whether received in money or otherwise, and without any 29
137	137	deduction for: 30
138	138	(a) The cost of the heavy equipment rental property to the 31
139	139	heavy equipment rental company; 32
140	140	(b) The cost of materials used, labor or service cost, interest 33
141	141	paid, losses, the cost of transportation to the heavy equipment 34
142	142	rental company, taxes imposed on the heavy equipment rental 35
143	143	company or any other expense of the heavy equipment rental 36
144	144	company; and 37
145	145	(c) Any charges by the heavy equipment rental company for 38
146	146	any services necessary to complete the rental, including, without 39
147	147	limitation, any delivery charges which are not stated separately 40
148	148	and any installation charges which are not stated separately. 41
149	149	2. The term does not include: 42
150	150	(a) Any fees or charges for the delivery or transportation of 43
151	151	heavy equipment rental property which are stated separately; 44
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154	154
155	155	- SB196_R1
156	156	(b) Any installation or other service charges which are stated 1
157	157	separately; 2
158	158	(c) Any discounts, including, without limitation, those in the 3
159	159	form of cash, term or coupons that are not reimbursed by a third 4
160	160	party, which are allowed by the heavy equipment rental company 5
161	161	and taken by the renter on a rental; 6
162	162	(d) Any interest, financing or carrying charges from credit 7
163	163	extended on the rental of heavy equipment rental property, if 8
164	164	stated separately; 9
165	165	(e) Any taxes legally imposed directly on the renter which are 10
166	166	stated separately; and 11
167	167	(f) Any other separately stated charges or fees, including, 12
168	168	without limitation, any separately stated fee for recovery of 13
169	169	property taxes imposed on heavy equipment rental property 14
170	170	pursuant to this chapter. 15
171	171	Sec. 10. “Renter” means a person who rents heavy 16
172	172	equipment rental property from a heavy equipment rental 17
173	173	company in this State. 18
174	174	Sec. 11. 1. Each person responsible for maintaining the 19
175	175	records of a heavy equipment rental company shall: 20
176	176	(a) Keep such records as may be necessary to determine the 21
177	177	compliance of the heavy equipment rental company with the 22
178	178	provisions of section 15 of this act; 23
179	179	(b) Preserve such records for 5 years or until any litigation or 24
180	180	prosecution related to compliance with section 15 of this act is 25
181	181	finally determined, whichever is longer; and 26
182	182	(c) Make such records available for inspection by the 27
183	183	Department upon demand at reasonable times during regular 28
184	184	business hours. 29
185	185	2. The Department may adopt regulations specifying the types 30
186	186	of records which must be kept to determine the compliance of a 31
187	187	heavy equipment rental company with the provisions of section 15 32
188	188	of this act. 33
189	189	Sec. 12. To verify the accuracy of any report filed pursuant 34
190	190	to section 15 of this act or, if no such report is filed, to determine 35
191	191	the compliance of a heavy equipment rental company with section 36
192	192	15 of this act, the Department, or any person authorized in writing 37
193	193	by the Department, may examine the books, papers and records of 38
194	194	any person who is required to comply with section 15 of this act. 39
195	195	Sec. 13. 1. Except as otherwise provided in section 14 of 40
196	196	this act, a heavy equipment rental company may impose a recovery 41
197	197	fee in an amount not to exceed 2 percent of the rental charge for 42
198	198	the rental of heavy equipment rental property to a renter. 43
199	199	– 5 –
200	200
201	201
202	202	- SB196_R1
203	203	2. The amount of any recovery fee imposed pursuant to 1
204	204	subsection 1 must be separately stated on an invoice provided to a 2
205	205	renter of heavy equipment rental property. 3
206	206	3. A heavy equipment rental company that imposes a recovery 4
207	207	fee pursuant to subsection 1 shall: 5
208	208	(a) Hold the amount of all recovery fees collected in a separate 6
209	209	account; and 7
210	210	(b) Use the money in the separate account only to offset any 8
211	211	taxes imposed pursuant to this chapter on heavy equipment rental 9
212	212	property. 10
213	213	Sec. 14. A heavy equipment rental company shall not charge 11
214	214	a recovery fee pursuant to section 13 of this act for the rental of 12
215	215	any heavy equipment rental property to: 13
216	216	1. The United States, its unincorporated agencies and 14
217	217	instrumentalities; 15
218	218	2. Any incorporated agency or instrumentality of the United 16
219	219	States wholly owned by the United States or by a corporation 17
220	220	wholly owned by the United States; 18
221	221	3. The State of Nevada, its unincorporated agencies and 19
222	222	instrumentalities; 20
223	223	4. Any county, city, district or other political subdivision of 21
224	224	this State; and 22
225	225	5. Any other person or entity that this State is prohibited from 23
226	226	taxing under the United States Constitution, laws or treaties of the 24
227	227	United States or the Nevada Constitution. 25
228	228	Sec. 15. Not later than August 15 of each calendar year, a 26
229	229	heavy equipment rental company that imposes a recovery fee 27
230	230	pursuant to section 13 of this act shall file with the Department, 28
231	231	on a form prescribed by the Department, a report which separately 29
232	232	states the amount of: 30
233	233	1. The recovery fees collected by the heavy equipment rental 31
234	234	company during the immediately preceding fiscal year; and 32
235	235	2. The taxes imposed pursuant to this chapter on the heavy 33
236	236	equipment rental property of the heavy equipment rental company 34
237	237	for the immediately preceding fiscal year. 35
238	238	Sec. 16. 1. A person shall not: 36
239	239	(a) Make, cause to be made or permit to be made any false or 37
240	240	fraudulent report or false statement in any report with intent to 38
241	241	defraud in violation of the requirements of subsection 3 of section 39
242	242	13 of this act; 40
243	243	(b) Make, cause to be made or permit to be made any false 41
244	244	entry in books, records or accounts with intent to defraud in 42
245	245	violation of the requirements of subsection 3 of section 13 of this 43
246	246	act; or 44
247	247	– 6 –
248	248
249	249
250	250	- SB196_R1
251	251	(c) Keep, cause to be kept or permit to be kept more than one 1
252	252	set of books, records or accounts with intent to defraud in 2
253	253	violation of the requirements of subsection 3 of section 13 of this 3
254	254	act. 4
255	255	2. Any person who violates the provisions of subsection 1 is 5
256	256	guilty of a gross misdemeanor. 6
257	257	Sec. 17. (Deleted by amendment.) 7
258	258	Sec. 18. (Deleted by amendment.) 8
259	259	Sec. 19. This act becomes effective on July 1, 2025. 9
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