| 1 | A bill to be entitled |
| 2 | An act relating to tangible personal property taxation; |
| 3 | providing definitions; authorizing collection of a |
| 4 | tangible personal property tax recovery fee by a person |
| 5 | engaging in the business of renting or leasing heavy |
| 6 | equipment; providing requirements for collection, |
| 7 | retention, and reimbursement of the recovery fee; |
| 8 | 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.- |
| 14 | (1) As used in this section, the term: |
| 15 | (a) "Heavy equipment" means industrial or construction |
| 16 | equipment, including, but not limited to, equipment described in |
| 17 | the North American Industry Classification System (NAICS) Code |
| 18 | 532412 as published in 2007 by the Office of Management and |
| 19 | Budget within the Executive Office of the President of the |
| 20 | United States. |
| 21 | (b) "Lessee" means the person who rents or leases the |
| 22 | heavy equipment. |
| 23 | (c) "Short-term rental agreement" means a lease or rental |
| 24 | agreement with a term of less than 365 days or an at-will |
| 25 | contract that does not specify a term; however, "short-term |
| 26 | rental agreement" does not include any extension or renewal of a |
| 27 | lease or rental agreement with an original term of 365 days or |
| 28 | more. |
| 29 | (2) For the purpose of recovering the tangible personal |
| 30 | property tax imposed on heavy equipment, a person engaging in |
| 31 | the business of leasing or renting heavy equipment may collect a |
| 32 | recovery fee in an amount equal to the estimated pro rata annual |
| 33 | tangible personal property tax that will be imposed. The |
| 34 | recovery fee may be collected and retained after payment of the |
| 35 | tax only if: |
| 36 | (a) The heavy equipment is subject to a short-term rental |
| 37 | agreement that discloses the amount and purpose for the |
| 38 | collection of the recovery fee; and |
| 39 | (b) Within 45 days after initial payment of the tax or |
| 40 | receipt of any refund of the initial payment, the person |
| 41 | engaging in the business of renting or leasing the heavy |
| 42 | equipment reimburses the lessee for any amount collected in |
| 43 | excess of the tax at a location described in the short-term |
| 44 | rental agreement or another location specified by the lessee. |
| 45 | The person engaging in the business of renting or leasing heavy |
| 46 | equipment: |
| 47 | 1. Shall prorate reimbursements of the tax if more than |
| 48 | one person rented or leased the equipment during the applicable |
| 49 | period; and |
| 50 | 2. May not seek any additional recoupment of the tax if |
| 51 | the actual tax paid is more than the amount collected. |
| 52 | Section 2. This act shall take effect July 1, 2011. |