| 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; specifying a rate for the fee; |
| 8 | limiting the total fee collected at each business |
| 9 | location; providing for refund or credit of amounts |
| 10 | collected in excess of tangible personal property taxes |
| 11 | levied on such equipment; providing definitions; providing |
| 12 | an effective date. |
| 13 |
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| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
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| 16 | Section 1. Heavy equipment rental; tangible personal |
| 17 | property tax recovery fee.- |
| 18 | (1) A person who engages in the business of renting heavy |
| 19 | equipment under short-term rental agreements may collect a |
| 20 | tangible personal property tax recovery fee on the rental of |
| 21 | heavy equipment. The purpose of the fee is to allow the owner of |
| 22 | the heavy equipment to recover the tangible personal property |
| 23 | taxes imposed upon such equipment. The amount of the fee must be |
| 24 | disclosed in the rental agreement. The rate of the recovery fee |
| 25 | shall be the prior year's tax rate levied on the tangible |
| 26 | personal property at the business location. The total recovery |
| 27 | fee collected at each business location during a calendar year |
| 28 | shall not exceed the total tangible personal property tax levied |
| 29 | upon the location's tangible personal property in that calendar |
| 30 | year. If a business location collects any amount in excess of |
| 31 | the personal property taxes levied upon the tangible personal |
| 32 | property located at the business location, the business location |
| 33 | shall credit or refund the overage back to each customer. |
| 34 | (2) As used in this section, the term: |
| 35 | (a) "Heavy equipment property" means industrial or |
| 36 | construction equipment and includes, but is not limited to, |
| 37 | equipment described under North American Industry Classification |
| 38 | System (NAICS) code 532412, as published in 2007 by the Office |
| 39 | of Management and Budget, Executive Office of the President. |
| 40 | (b) "Short-term rental agreement" means only a lease or |
| 41 | rental agreement entered into for a term of less than 365 days |
| 42 | or an at-will contract that does not specify the length of time |
| 43 | of the contract. The term does not include any extension or |
| 44 | renewal of a lease contract with an original term of 1 year or |
| 45 | more. |
| 46 | Section 2. This act shall take effect July 1, 2010. |