SB196

• Yeager, Steve voted Yea on this bill despite $2,000 in contributions from Ferrari Reeder Public Affairs. submit correction
• Jauregui, Sandra voted Yea on this bill despite $1,000 in contributions from Ferrari Reeder Public Affairs. submit correction
• Hafen, Gregory voted Yea on this bill despite $1,000 in contributions from Ferrari Reeder Public Affairs. submit correction

Under existing law, all property of every kind and nature in this State is subject to property taxes unless the property is exempt from such taxation. (NRS 361.045) In general, this bill authorizes a heavy equipment rental company that is primarily engaged in the business of renting heavy equipment, without an operator, from a location in this State to charge a recovery fee to offset the property taxes levied on such heavy equipment. Under existing regulations, such a recovery fee would be excluded from the sales or use tax charged for the rental of the heavy equipment. (NAC 372.940) Section 13 of this bill authorizes such a heavy equipment rental company to charge a recovery fee in an amount not to exceed 2 percent of the rental charge for the rental of the heavy equipment. Under section 13, a heavy equipment rental company that charges a recovery fee is required to: (1) separately state on the invoice provided to the renter the amount of the recovery fee charged to the renter; (2) hold the recovery fee in a separate account; and (3) use the proceeds of the recovery fee to offset the property taxes levied on heavy equipment rental property. Section 14 of this bill exempts from the charging of a recovery fee the rental of any heavy equipment rental property to certain governmental entities. Section 15 of this bill requires a heavy equipment rental company to submit to the Department of Taxation an annual report stating the amount of the recovery fees collected by the heavy eq