| 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 and |
| 7 | retention; prohibiting additional recoupment of a recovery |
| 8 | fee in the current year under certain circumstances; |
| 9 | requiring a reduction in the amount of recoupment of a |
| 10 | recovery fee for the following year under certain |
| 11 | circumstances; providing an effective date. |
| 12 |
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| 13 | Be It Enacted by the Legislature of the State of Florida: |
| 14 |
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| 15 | Section 1. Heavy equipment rental; tangible personal |
| 16 | property tax recovery fee.- |
| 17 | (1) As used in this section, the term: |
| 18 | (a) "Heavy equipment" means industrial or construction |
| 19 | equipment, including, but not limited to, equipment described in |
| 20 | the North American Industry Classification System (NAICS) Code |
| 21 | 532412 as published in 2007 by the Office of Management and |
| 22 | Budget within the Executive Office of the President of the |
| 23 | United States. |
| 24 | (b) "Lessee" means the person who rents or leases the |
| 25 | heavy equipment. |
| 26 | (c) "Short-term rental agreement" means a lease or rental |
| 27 | agreement with a term of less than 365 days or an at-will |
| 28 | contract that does not specify a term; however, "short-term |
| 29 | rental agreement" does not include any extension or renewal of a |
| 30 | lease or rental agreement with an original term of 365 days or |
| 31 | more. |
| 32 | (2) For the purpose of recovering the tangible personal |
| 33 | property tax imposed on heavy equipment, a person engaging in |
| 34 | the business of leasing or renting heavy equipment may collect a |
| 35 | recovery fee in an amount equal to 2 percent of the total rental |
| 36 | transaction fee generated in each county of operation. The |
| 37 | recovery fee may be collected and retained after payment of the |
| 38 | tangible personal property tax assessed for the previous year |
| 39 | only if the heavy equipment is subject to a short-term rental |
| 40 | agreement that discloses the amount and purpose for the |
| 41 | collection of the recovery fee. |
| 42 | (a) A person engaging in the business of renting or |
| 43 | leasing heavy equipment may not seek additional recoupment of |
| 44 | the recovery fee for the current year if the actual recovery fee |
| 45 | collected in the current year exceeds the tangible personal |
| 46 | property tax paid in the prior year. |
| 47 | (b) If, during the current year, the recovery fee |
| 48 | collected by the person engaging in the business of renting or |
| 49 | leasing heavy equipment exceeds the tax paid in the prior year, |
| 50 | the recovery fee recoupment for the following year must be |
| 51 | reduced by an amount equal to such excess amount. |
| 52 | Section 2. This act shall take effect July 1, 2011. |