SB 196 — Authorizes a heavy equipment rental company to charge a recovery fee to offset taxes levied on certain heavy equipment. (BDR 32-19)

(ReprintedSenate withBill amendmentsNo. adopted on April 17, 2025) FIRST REPRINT S.B.

196196–Senator SCannizzaro ENATECHAPTER.......... B ILLN O.

196–SENATOR C ANNIZZARO FEBRUARY 10, 2025 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Authorizes a heavy equipment rental company to charge a recovery fee to offset taxes levied on certain heavy equipment.

(BDR 32-19) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

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)ject361.045) 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.

(NASection(NAC 13372.940) 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.

and (3) use the proceeds of the Sectionrecovery 14fee ofto thisoffset bill exempts from the chargingproperty oftaxes alevied recoveryon fee the rental of any heavy equipment rental propertyproperty. to certain governmental entities.

Section 1514 of this bill requiresexempts afrom heavy equipment rental company to submit to the Departmentcharging of Taxationa an annual report stating the amount of the recovery feesfee collected by the heavy equipment rental company during the immediately preceding fiscal year and the amount of theany property taxes levied on the heavy - *SB196_R1* – 2 – equipment rental property ofto thecertain heavygovernmental equipmententities. rental company for the immediately preceding fiscal year.

recoverySection fee15 of this bill requires a heavy equipment rental company to submit to collected by the heavy equipment rental company during the immediatelyrecovery fees preceding fiscal year and the amount of the property taxes levied on the heavy equipment rental property of the heavy equipment rental property.company for the immediately preceding fiscal year.

Sections 4-10 of this bill define certain terms relating to the imposition of the recovery fee on the rental of heavy equipment rental property.

Section 16 of this bill provides thator afalsifies personentries whoin submitsor akeeps falsemore orthan fraudulentone reportset concerningof thebooks, recoveryrecords feeor accounts, with intent to defraud in violation of the requirement to use the recovery fees only towithto offset property taxes, is guilty of a gross misdemeanor.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(Deleted by amendment.) - 83rd Session (2025) – 2 – Sec.

As used in sections 3 to 16, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4 to 10, inclusive, of this act have the meaningsmeaningsfined ascribed to them in those sections.

(a) Engaged in the business of renting heavy equipment rental property primarily to related persons or affiliates who operate or drive, or both operate and drive, such equipment, regardless of the NAICS code that applies to the business;

ororpment, -regardless *SB196_R1*of –the 3 – (b) Primarily engaged in the business of renting heavy equipment rental property with an operator.

- 83rd Session (2025) – 3 – “NAICS” means the 2022 North American Industry Classification System, as published by the Bureau of the Census of the United States Department of Commerce.

7.

“North American Industry Classification System” or “NAICS” means the 2022 North American Industry Classification System, as published by the Bureau of the Census of the United States Department of Commerce.

Sec.

(a)heavy equipment rental company;uipment rental property to the (b) The cost of materials used, labor or service cost, interest paid, losses, the cost of transportation to the heavy equipment rental propertycompany, totaxes imposed on the heavy equipment rental company or any other expense of the heavy equipment rental company;

(b) The cost of materials used, labor or service cost, interest paid, losses, the cost of transportation to the heavy equipment rental company, taxes imposed on the heavy equipment rental company or any other expense of the heavy equipment rental company;

- *SB196_R1* – 4 – (b) Any installation or other service charges which are stated separately;

(c) Any discounts, including, without limitation, those in the form of cash, term or coupons that are not reimbursed by a thirdthirde party, which are allowed by the heavy equipment rental company and taken by the renter on a rental;

and - 83rd Session (2025) – 4 – (f) Any other separately stated charges or fees, including, without limitation, any separately stated fee for recovery of property taxes imposed on heavy equipment rental property pursuant to this chapter.

equipment rental property from a heavy equipment rental company in this State.

10.

“Renter” means a person who rents heavy equipment rental property from a heavy equipment rental company in this State.

Sec.

To verify the accuracy of any report filed pursuant to section 15 of this act or, if no such report is filed, to determine the compliance of a heavy equipment rental company with section 15 of this act, the Department, or any person authorized in writing by the Department, may examine the books, papers and records of anyanySec. person who is required to comply with section 15 of this act.

Sec.

is Except as otherwise provided in section 14 ofoft. this act, a heavy equipment rental company may impose a recovery fee in an amount not to exceed 2 percent of the rental charge for the rental of heavy equipment rental property to a renter.