Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 13 (2025GS)

Sponsor

Sen. Fillmore, Lincoln

Final action

Governor Signed 3/26/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• allows certain rental businesses to charge a fee on the rental of heavy equipment for reimbursement of property taxes (recovery fee);
• requires recovery fees to be separately itemized and clarifies that recovery fees are not subject to sales and use tax;
• prohibits a rental business from charging a recovery fee to a governmental entity;
• requires the State Tax Commission to coordinate with county auditors and the Multicounty Appraisal Trust to conduct a study on the recovery fee rate and provide a report with recommendations to the Legislature; and
• requires county auditors and the Multicounty Appraisal Trust to share requested information with the State Tax Commission for purposes of conducting the study.

Every vote on this bill

Bill text

4
59-2-2001
59-2-2002
13
Property Tax Reimbursement Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: Joseph Elison
LONG TITLE
General Description:
This bill provides for reimbursement of property taxes.
Highlighted Provisions:
This bill:
defines terms;
allows certain rental businesses to charge a fee on the rental of heavy equipment for 
reimbursement of property taxes (recovery fee);
requires recovery fees to be separately itemized and clarifies that recovery fees are not 
subject to sales and use tax;
prohibits a rental business from charging a recovery fee to a governmental entity;
requires the State Tax Commission to coordinate with county assessors and the 
Multicounty Appraisal Trust to conduct a study on the recovery fee rate and provide a 
report with recommendations to the Legislature; and
requires county assessors and the Multicounty Appraisal Trust to share requested 
information with the State Tax Commission for purposes of conducting the study.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
ENACTS:
59-2-2001
, Utah Code Annotated 1953
59-2-2002
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
59-2-2001
 is enacted to read:
20. Recovery Fee for Rental of Heavy Equipment
59-2-2001
. Definitions.
As used in this part:
(1)
(a)
"Heavy equipment" means tangible personal property that:
(i)
is owned by a qualified rental business for purposes of renting;
(ii)
is utilized or designed for construction, earthmoving, or industrial operations; and
(iii)
is portable and transferable to the location in which the heavy equipment is used.
(b)
"Heavy equipment" includes:
(i)
lift equipment;
(ii)
material handling equipment;
(iii)
cranes;
(iv)
pumps;
(v)
generators;
(vi)
compressors;
(vii)
portable power equipment;
(viii)
heating, ventilation, and air conditioning equipment;
(ix)
portable worksite offices and containers;
(x)
tank trailers; and
(xi)
self-propelled equipment.
(2)
"Multicounty Appraisal Trust" means the same as that term is defined in Section 
59-2-1601
.
(3)
"Qualified rental business" means a business entity located in this state:
(a)
that is classified within one of the following NAICS codes of the 2022 North 
American Industry Classification System of the federal Executive Office of the 
President, Office of Management and Budget:
(i)
NAICS Code 532310, General Rental Centers; or
(ii)
NAICS Code 532412, Construction, Mining, and Forestry Machinery and 
Equipment Rental and Leasing; and
(b)
for which 51% or more of the business entity's total annual revenue is derived from 
the rental of heavy equipment.
(4)
"Recovery fee" means the fee authorized in Subsection 
59-2-2002(1)
.
(5)
"Rental" means the same as the terms "lease" or "rental" are defined in Section 
59-12-102
.
(6)
(a)
"Rental charge" means the amount charged to a renter by a qualified rental 
business for the rental of heavy equipment.
(b)
"Rental charge" does not include any additional charges separate from the actual cost 
of the rental transaction, including costs required for delivery, insurance, or a waiver 
of liability.
(7)
"Renter" means the person to which a qualified rental business rents heavy equipment.
Section 2, Section 
59-2-2002
 is enacted to read:
59-2-2002
. Recovery fee for rental of heavy equipment -- Commission study and 
report.
(1)
A qualified rental business may charge to a renter a fee in an amount equal to 1.5% of 
the rental charge for each item of heavy equipment rented in this state.
(2)
A recovery fee under Subsection (1):
(a)
shall be separately stated on the invoice or receipt for the rental transaction; and
(b)
is not subject to a sales and use tax under Chapter 12, Sales and Use Tax Act.
(3)
A qualified rental business may not charge a recovery fee to a renter that is a 
governmental entity as defined in Section 
59-2-511
.
(4)
Any amount of recovery fees collected by a qualified rental business during a calendar 
year shall be used as reimbursement for property taxes paid by the qualified rental 
business on heavy equipment in the same calendar year.
(5)
(a)
The commission shall:
(i)
in coordination with county assessors and the Multicounty Appraisal Trust, 
conduct a study to determine the need for adjustment to the rate authorized under 
Subsection 
(1)
 for purposes of property tax reimbursement; and
(ii)
on or before September 30, 2027, provide to the Revenue and Taxation Interim 
Committee an electronic report of the results of the study required under 
Subsection 
(5)(a)
(i), including any recommendations, based on information 
received by the commission, for legislative changes to the rate authorized under 
Subsection 
(1)
.
(b)
A county assessor or the Multicounty Appraisal Trust shall, upon request by the 
commission, provide to the commission any information necessary to complete the 
study required under Subsection 
(5)(a)(i)
.
Section 3. 
Effective date.
This bill takes effect on 
January 1, 2026
.
1-31-25 12:20 PM