UT
Utah Senate Bill SB0013

Utah 2025 Regular Session

Utah Senate Bill SB0013 Compare Versions

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1-Enrolled Copy S.B. 13
1+01-31 12:20 S.B. 13
22 1
33 Property Tax Reimbursement Amendments
44 2025 GENERAL SESSION
55 STATE OF UTAH
66 Chief Sponsor: Lincoln Fillmore
77 House Sponsor: Joseph Elison
88 2
99
1010 3
1111 LONG TITLE
12+ Ĥ→ [Committee Note:
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14+
15+5
16+The Revenue and Taxation Interim Committee recommended this bill.
17+6 Legislative Vote:10 voting for0 voting against8 absent] ←Ĥ
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1319 General Description:
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1521 This bill provides for reimbursement of property taxes.
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1723 Highlighted Provisions:
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1925 This bill:
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2127 ▸ defines terms;
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2329 ▸ allows certain rental businesses to charge a fee on the rental of heavy equipment for
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2531 reimbursement of property taxes (recovery fee);
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2733 ▸ requires recovery fees to be separately itemized and clarifies that recovery fees are not
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2935 subject to sales and use tax;
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3137 ▸ prohibits a rental business from charging a recovery fee to a governmental entity;
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33-▸ requires the State Tax Commission to coordinate with county assessors and the
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39+▸ requires the State Tax Commission to coordinate with county Ĥ→ [auditors]
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41+assessors ←Ĥ and the
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3543 Multicounty Appraisal Trust to conduct a study on the recovery fee rate and provide a
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3745 report with recommendations to the Legislature; and
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39-▸ requires county assessors and the Multicounty Appraisal Trust to share requested
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47+▸ requires county Ĥ→ [auditors] assessors ←Ĥ and the Multicounty Appraisal Trust to
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49+share requested
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4151 information with the State Tax Commission for purposes of conducting the study.
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4353 Money Appropriated in this Bill:
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4555 None
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4757 Other Special Clauses:
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4959 This bill provides a special effective date.
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5161 Utah Code Sections Affected:
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5363 ENACTS:
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5565 59-2-2001, Utah Code Annotated 1953
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66+ S.B. 13 S.B. 13 01-31 12:20
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5768 59-2-2002, Utah Code Annotated 1953
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59- S.B. 13 Enrolled Copy
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61-Be it enacted by the Legislature of the state of Utah:
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63-Section 1. Section 59-2-2001 is enacted to read:
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72+Be it enacted by the Legislature of the state of Utah:
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74+Section 1. Section 59-2-2001 is enacted to read:
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6677 Part 20. Recovery Fee for Rental of Heavy Equipment
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6879 59-2-2001 . Definitions.
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7081 As used in this part:
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7283 (1)(a) "Heavy equipment" means tangible personal property that:
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7485 (i) is owned by a qualified rental business for purposes of renting;
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7687 (ii) is utilized or designed for construction, earthmoving, or industrial operations; and
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7889 (iii) is portable and transferable to the location in which the heavy equipment is used.
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8091 (b) "Heavy equipment" includes:
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8293 (i) lift equipment;
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8495 (ii) material handling equipment;
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8697 (iii) cranes;
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8899 (iv) pumps;
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90101 (v) generators;
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92103 (vi) compressors;
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94105 (vii) portable power equipment;
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96107 (viii) heating, ventilation, and air conditioning equipment;
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98109 (ix) portable worksite offices and containers;
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100111 (x) tank trailers; and
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102113 (xi) self-propelled equipment.
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104115 (2) "Multicounty Appraisal Trust" means the same as that term is defined in Section
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106117 59-2-1601.
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108119 (3) "Qualified rental business" means a business entity located in this state:
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110121 (a) that is classified within one of the following NAICS codes of the 2022 North
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112123 American Industry Classification System of the federal Executive Office of the
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114125 President, Office of Management and Budget:
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116127 (i) NAICS Code 532310, General Rental Centers; or
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118129 (ii) NAICS Code 532412, Construction, Mining, and Forestry Machinery and
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120131 Equipment Rental and Leasing; and
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122133 (b) for which 51% or more of the business entity's total annual revenue is derived from
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124135 the rental of heavy equipment.
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126138 (4) "Recovery fee" means the fee authorized in Subsection 59-2-2002(1).
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128140 (5) "Rental" means the same as the terms "lease" or "rental" are defined in Section
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131142 59-12-102.
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133144 (6)(a) "Rental charge" means the amount charged to a renter by a qualified rental
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135146 business for the rental of heavy equipment.
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137148 (b) "Rental charge" does not include any additional charges separate from the actual cost
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139150 of the rental transaction, including costs required for delivery, insurance, or a waiver
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141152 of liability.
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143154 (7) "Renter" means the person to which a qualified rental business rents heavy equipment.
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145156 Section 2. Section 59-2-2002 is enacted to read:
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147158 59-2-2002 . Recovery fee for rental of heavy equipment -- Commission study and
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149160 report.
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151162 (1) A qualified rental business may charge to a renter a fee in an amount equal to 1.5% of
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153164 the rental charge for each item of heavy equipment rented in this state.
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155166 (2) A recovery fee under Subsection (1):
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157168 (a) shall be separately stated on the invoice or receipt for the rental transaction; and
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159170 (b) is not subject to a sales and use tax under Chapter 12, Sales and Use Tax Act.
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161172 (3) A qualified rental business may not charge a recovery fee to a renter that is a
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163174 governmental entity as defined in Section 59-2-511.
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165176 (4) Any amount of recovery fees collected by a qualified rental business during a calendar
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167178 year shall be used as reimbursement for property taxes paid by the qualified rental
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169180 business on heavy equipment in the same calendar year.
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171182 (5)(a) The commission shall:
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173-(i) in coordination with county assessors and the Multicounty Appraisal Trust,
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175-conduct a study to determine the need for adjustment to the rate authorized under
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184+(i) in coordination with county Ĥ→ [auditors] assessors ←Ĥ and the Multicounty Appraisal
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186+Trust, conduct
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188+a study to determine the need for adjustment to the rate authorized under
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177190 Subsection (1) for purposes of property tax reimbursement; and
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179192 (ii) on or before September 30, 2027, provide to the Revenue and Taxation Interim
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181194 Committee an electronic report of the results of the study required under
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183196 Subsection (5)(a)(i), including any recommendations, based on information
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185198 received by the commission, for legislative changes to the rate authorized under
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187200 Subsection (1).
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189-(b) A county assessor or the Multicounty Appraisal Trust shall, upon request by the
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202+(b) A county Ĥ→ [auditor] assessor ←Ĥ or the Multicounty Appraisal Trust shall, upon request by
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191207 commission, provide to the commission any information necessary to complete the
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193209 study required under Subsection (5)(a)(i).
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195211 Section 3. Effective date.
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197213 This bill takes effect on January 1, 2026.
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