Bill Text: MS HB1257 | 2026 | Regular Session | Introduced

Mississippi House Bill 1257

Introduced

Bill Title: Heavy equipment property; authorize certain businesses to charge recovery fee on rental of.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2026-02-03 - Died In Committee [HB1257 Detail]

Download: Mississippi-2026-HB1257-Introduced.html

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Business and Commerce

By: Representative Steverson

House Bill 1257

AN ACT TO PROVIDE THAT A QUALIFIED HEAVY EQUIPMENT RENTAL BUSINESS MAY CHARGE TO A RENTER A RECOVERY FEE IN AN AMOUNT NOT TO EXCEED TWO PERCENT OF THE RENTAL CHARGE FOR EACH ITEM OF HEAVY EQUIPMENT RENTED IN THIS STATE; TO PROVIDE THAT A RECOVERY FEE SHALL BE SEPARATELY STATED ON THE INVOICE OR RECEIPT FOR THE RENTAL TRANSACTION AND SHALL BE ENFORCEABLE BY THE QUALIFIED HEAVY EQUIPMENT RENTAL BUSINESS TO THE SAME EXTENT AS THE UNDERLYING RENTAL CHARGES OR OTHER CHARGES CONTAINED ON SUCH INVOICE OR RECEIPT; TO PROVIDE THAT RECOVERY FEES COLLECTED BY A QUALIFIED HEAVY EQUIPMENT RENTAL BUSINESS SHALL BE USED TO PAY OR AS A REIMBURSEMENT FOR THE PAYMENT OF ANY AD VALOREM TAXES LEVIED OR ASSESSED ON THE QUALIFIED RENTAL BUSINESS'S HEAVY EQUIPMENT IN THE STATE; TO DEFINE THE TERMS "HEAVY EQUIPMENT PROPERTY", "QUALIFIED HEAVY EQUIPMENT RENTAL BUSINESS", "RENT" AND "RENTAL CHARGE" FOR THE PURPOSES OF THIS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) For the purposes of this section, the following words and phrases shall have the meanings ascribed in this subsection unless the context clearly indicates otherwise:

(a) "Heavy equipment property" means any and all tangible personal property owned by a qualified heavy equipment rental business that:

(i) Is owned for purposes of renting, notwithstanding that such items may also be sold in the regular course of business;

(ii) Is utilized or designed for construction, earthmoving, or industrial operations; and

(iii) Is portable and transferable to the location in which the heavy equipment is to be used.

(b) "Qualified heavy equipment rental business" means a business that satisfies the following:

(i) The principal business of the business is the rental of heavy equipment property; and/or

(ii) The business is engaged in a line of business described in Code 532310 or 532412 of the North American Industry Classification System published by the United States Office of Management and Budget, 2022 Edition.

(c) "Rent", "rental" or "renting" means entering into an agreement with a qualified heavy equipment rental business in this state for the use of heavy equipment property in this state in exchange for consideration of a period:

(i) Not to exceed three hundred sixty-five (365) days; or

(ii) That is open-ended under the terms of the rental contract with no specified end date.

(d) "Rental charge" means the total amount of the charge for renting the heavy equipment property and attachments, but excluding any separately stated charges that are not rental charges, including such as separately stated charges for delivery and pickup fees, damage waivers, environmental mitigation fees, sales tax reimbursement, or use taxes.

(2) A qualified heavy equipment rental business may charge to a renter a recovery fee in an amount not to exceed two percent (2%) of the rental charge for each item of heavy equipment rented in this state.

(3) Any recovery fee charged under subsection (2) of this section shall be separately stated on the invoice or receipt for the rental transaction and shall be enforceable by the qualified heavy equipment rental business to the same extent as the underlying rental charges or other charges contained on such invoice or receipt.

(4) Recovery fees collected by a qualified heavy equipment rental business shall be used to pay or as a reimbursement for the payment of any ad valorem taxes levied or assessed on the qualified rental business's heavy equipment in the state. Any recovery fees collected that exceed the ad valorem taxes levied upon a qualified heavy equipment rental business in any year may be held and applied to ad valorem taxes levied or assessed on the qualified rental business's heavy equipment in the state in any subsequent year.

(4) Recovery fees collected by a qualified rental business do not constitute trust fund monies in the hands of the qualified heavy equipment rental business.

SECTION 2. This act shall take effect and be in force from and after July 1, 2026.