Enrolled Copy S.B. 13
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Property Tax Reimbursement Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: Joseph Elison
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LONG TITLE
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General Description:
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This bill provides for reimbursement of property taxes.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ allows certain rental businesses to charge a fee on the rental of heavy equipment for
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reimbursement of property taxes (recovery fee);
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▸ requires recovery fees to be separately itemized and clarifies that recovery fees are not
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subject to sales and use tax;
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▸ prohibits a rental business from charging a recovery fee to a governmental entity;
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▸ requires the State Tax Commission to coordinate with county assessors and the
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Multicounty Appraisal Trust to conduct a study on the recovery fee rate and provide a
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report with recommendations to the Legislature; and
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▸ requires county assessors and the Multicounty Appraisal Trust to share requested
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information with the State Tax Commission for purposes of conducting the study.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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ENACTS:
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59-2-2001, Utah Code Annotated 1953
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59-2-2002, Utah Code Annotated 1953
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S.B. 13 Enrolled Copy
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 59-2-2001 is enacted to read:
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Part 20. Recovery Fee for Rental of Heavy Equipment
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59-2-2001 . Definitions.
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As used in this part:
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(1)(a) "Heavy equipment" means tangible personal property that:
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(i) is owned by a qualified rental business for purposes of renting;
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(ii) is utilized or designed for construction, earthmoving, or industrial operations; and
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(iii) is portable and transferable to the location in which the heavy equipment is used.
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(b) "Heavy equipment" includes:
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(i) lift equipment;
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(ii) material handling equipment;
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(iii) cranes;
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(iv) pumps;
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(v) generators;
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(vi) compressors;
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(vii) portable power equipment;
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(viii) heating, ventilation, and air conditioning equipment;
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(ix) portable worksite offices and containers;
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(x) tank trailers; and
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(xi) self-propelled equipment.
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(2) "Multicounty Appraisal Trust" means the same as that term is defined in Section
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59-2-1601.
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(3) "Qualified rental business" means a business entity located in this state:
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(a) that is classified within one of the following NAICS codes of the 2022 North
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American Industry Classification System of the federal Executive Office of the
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President, Office of Management and Budget:
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(i) NAICS Code 532310, General Rental Centers; or
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(ii) NAICS Code 532412, Construction, Mining, and Forestry Machinery and
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Equipment Rental and Leasing; and
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(b) for which 51% or more of the business entity's total annual revenue is derived from
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the rental of heavy equipment.
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(4) "Recovery fee" means the fee authorized in Subsection 59-2-2002(1).
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(5) "Rental" means the same as the terms "lease" or "rental" are defined in Section
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59-12-102.
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(6)(a) "Rental charge" means the amount charged to a renter by a qualified rental
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business for the rental of heavy equipment.
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(b) "Rental charge" does not include any additional charges separate from the actual cost
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of the rental transaction, including costs required for delivery, insurance, or a waiver
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of liability.
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(7) "Renter" means the person to which a qualified rental business rents heavy equipment.
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Section 2. Section 59-2-2002 is enacted to read:
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59-2-2002 . Recovery fee for rental of heavy equipment -- Commission study and
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report.
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(1) A qualified rental business may charge to a renter a fee in an amount equal to 1.5% of
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the rental charge for each item of heavy equipment rented in this state.
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(2) A recovery fee under Subsection (1):
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(a) shall be separately stated on the invoice or receipt for the rental transaction; and
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(b) is not subject to a sales and use tax under Chapter 12, Sales and Use Tax Act.
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(3) A qualified rental business may not charge a recovery fee to a renter that is a
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governmental entity as defined in Section 59-2-511.
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(4) Any amount of recovery fees collected by a qualified rental business during a calendar
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year shall be used as reimbursement for property taxes paid by the qualified rental
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business on heavy equipment in the same calendar year.
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(5)(a) The commission shall:
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(i) in coordination with county assessors and the Multicounty Appraisal Trust,
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conduct a study to determine the need for adjustment to the rate authorized under
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Subsection (1) for purposes of property tax reimbursement; and
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(ii) on or before September 30, 2027, provide to the Revenue and Taxation Interim
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Committee an electronic report of the results of the study required under
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Subsection (5)(a)(i), including any recommendations, based on information
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received by the commission, for legislative changes to the rate authorized under
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Subsection (1).
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(b) A county assessor or the Multicounty Appraisal Trust shall, upon request by the
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commission, provide to the commission any information necessary to complete the
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study required under Subsection (5)(a)(i).
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Section 3. Effective date.
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This bill takes effect on January 1, 2026.
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