Bill Text: MS SB2878 | 2026 | Regular Session | Introduced

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Bill Title: Ad valorem taxes; authorize heavy equipment rental businesses to collect recovery fee from renters for payment of.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2026-02-03 - Died In Committee [SB2878 Detail]

Download: Mississippi-2026-SB2878-Introduced.html

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MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Finance

By: Senator(s) Fillingane

Senate Bill 2878

AN ACT TO ALLOW A QUALIFIED HEAVY EQUIPMENT RENTAL BUSINESS TO CHARGE TO A RENTER A RECOVERY FEE IN AN AMOUNT NOT TO EXCEED 2% OF THE RENTAL CHARGE FOR EACH ITEM OF HEAVY EQUIPMENT RENTED IN THIS STATE; TO PROVIDE THAT SUCH A FEE 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 PROVIDE THAT 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 TAXES LEVIED OR ASSESSED IN ANY SUBSEQUENT YEAR; AND FOR RELATED PURPOSES.

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

     SECTION 1.  (1)  As used in this section, the following terms have the meanings ascribed below unless a contrary meaning is evident from the context:

          (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; 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, 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)  Any 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 taxes levied or assessed in any subsequent year.

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

     (6)  Nothing in this section shall give rise to any exclusion or exemption of any heavy equipment rental property from ad valorem, income, sale, use or other taxes imposed by this state, nor shall it limit or restrict any other exclusion or exemption now or hereafter existing under the laws of this state.

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