| 1 | A bill to be entitled |
| 2 | An act relating to tangible personal property tax |
| 3 | transparency; authorizing persons who rent certain heavy |
| 4 | equipment to collect a tangible personal property tax |
| 5 | recovery fee on certain heavy equipment property rentals |
| 6 | for certain purposes; requiring disclosure of the fee in |
| 7 | the rental agreement; providing a limitation; providing |
| 8 | definitions; providing an effective date. |
| 9 |
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| 10 | Be It Enacted by the Legislature of the State of Florida: |
| 11 |
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| 12 | Section 1. Heavy equipment rental; tangible personal |
| 13 | property tax recovery fee.-A person who engages in the business |
| 14 | of renting heavy equipment under short-term rental agreements |
| 15 | may collect a tangible personal property tax recovery fee on the |
| 16 | rental of heavy equipment. The purpose of the fee is to allow |
| 17 | the owner of the heavy equipment to recover the tangible |
| 18 | personal property taxes imposed upon such equipment. The amount |
| 19 | of the fee must be disclosed in the rental agreement. The rate |
| 20 | of the recovery fee may not exceed the rate of the tangible |
| 21 | personal property tax imposed on such property by the county in |
| 22 | which the equipment rental business is located. For purposes of |
| 23 | this section, the term "heavy equipment property" means |
| 24 | industrial or construction equipment and includes, but is not |
| 25 | limited to, equipment described under North American Industry |
| 26 | Classification System (NAICS) code 532412, as published in 2007 |
| 27 | by the Office of Management and Budget, Executive Office of the |
| 28 | President. For purposes of this section, the term "short-term |
| 29 | rental agreement" means only a lease or rental agreement entered |
| 30 | into for a term of less than 365 days or an at-will contract |
| 31 | that does not specify the length of time of the contract. The |
| 32 | term does not include any extension or renewal of a lease |
| 33 | contract with an original term of 1 year or more. |
| 34 | Section 2. This act shall take effect July 1, 2010. |