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SENATE FLOOR VERSION
April 10, 2023
AS AMENDED
ENGROSSED HOUSE
BILL NO. 1348 By: Fetgatter of the House
and
Rader of the Senate
[ heavy equipment rentals - recovery fee - report to
Oklahoma Tax Commission - General Revenue Fund -
sales tax on recovery fee amounts – codification ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2807.10 of Title 68, unl ess
there is created a duplication in numbering, reads as f ollows:
As used in this act:
1. "Heavy equipment property" includes all rental p roperty
owned or held by a rental business classified under Industry Code
No. "532412" or "532310" of the 2017 North American Industry
Classification System as published by th e United States Bureau of
the Census;
2. "Primarily" means more than fifty -one percent (51%) of the
annual revenue of the business is derived from the rental of
personal property; and
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3. "Rental charge" is defined as the charge of the rental and
does not include any other costs such as pickup and delivery, fuel,
or damage waiver.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2807. 11 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. Except as provided in subsection B of this sect ion, a
company primarily in the business of renting heavy equipment
property located in this state may include as a separate line item
on the rental invoice a recovery fee of one and one-quarter percent
(1.25%) on the rental charge from any item of heavy equipment
property rental by a customer. The total amount of the recovery fee
shall be retained by the business for the purposes of paying
personal property taxes levied by al l taxing jurisdictions against
the heavy equipment property located in the state.
B. Notwithstanding the provisions of subsection A of this
section, the recovery fee provided in this section shall no t apply
to the rental of heavy equipment property to t he federal government,
any federally recognized Indian tribe, the State of Oklahoma, any
municipality or any county of this state. There shall not be an y
other exemptions from the recovery fee.
SECTION 3. NEW LAW A new section of law to be c odified
in the Oklahoma Statutes as Section 2807.12 of Title 68, unless
there is created a duplication in numbering, reads as follows:
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The recovery fee shall not be subject to state or local sales
tax.
SECTION 4. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Se ction 2807.13 of Title 68, unless
there is created a duplication in numbering, reads as follows:
Annually, on or before February 15 , each rental business that
collects the equipment rental recovery fee shall be required to
submit to the Tax Commission a con solidated report showing the
aggregated personal property taxes paid in the state duri ng the
previous calendar year and the aggregated recove ry collections in
the state. If the aggregated recovery co llections in the state
exceed the aggregated taxes paid in the state, the excess shall be
paid to the General Revenue Fund .
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
April 10, 2023 - DO PASS AS AMENDED