SB 13 Utah Senate · 2025 General Session

Property Tax Reimbursement Amendments

SB 13 allows qualified rental businesses (those meeting specific NAICS codes with over 51% revenue from heavy equipment rentals) to charge renters a 1.5% recovery fee on heavy equipment rentals. This fee must be separately itemized on invoices and is not subject to sales tax, though it cannot be charged to government entities. The bill requires businesses to use collected fees to offset their own property taxes on heavy equipment, while mandating the State Tax Commission to study the fee rate by September 2027 and report findings to the Legislature. It takes effect January 1, 2026, with no new state funding required.
Bill status signed all 5 stages cleared
Introduction
Jan 2025
Committee Review
Jan 2025
Senate Passage
Feb 2025
House Passage
Jan 2025
Signed into Law
Mar 2025
Introduced Jan 21, 2025 Signed Mar 26, 2025
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What changed between versions

Amended Excerpts 1/31/2025 12:01:655 Amended 1/31/2025 12:01:655 · 6 edits
MODERATE
This bill establishes a property tax reimbursement system allowing heavy equipment rental businesses to charge a 1.5% recovery fee on rentals, which is separately itemized and exempt from sales tax. The bill defines eligible businesses, prohibits charging governmental entities, and requires a state study on the fee rate by September 2027. The amendment primarily adds substantive policy content that was previously missing from the bill text.
Scope change
The bill now explicitly defines eligible businesses as those classified under specific NAICS codes where over 51% of revenue comes from heavy equipment rentals, and clarifies that recovery fees cannot be charged to governmental entities.
DEFINITION

Added comprehensive definitions for heavy equipment, recovery fee, rental charge, renter, and qualified rental business with specific NAICS code requirements.

REQUIREMENT

Established a 1.5% recovery fee rate that must be separately itemized on invoices and exempt from sales tax.

ADDED

Added prohibition on charging recovery fees to governmental entities.

TIMELINE

Set effective date of January 1, 2026, and required study completion by September 30, 2027.

FISCAL

Specified that collected recovery fees must be used to reimburse property taxes paid by rental businesses in the same calendar year.

TECHNICAL

Corrected formatting inconsistencies in committee notes and section numbering.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
34
Key actions
7
Committee
3
Amendments
1
Mar 26, 2025
Signed into law
Governor Signed
executive
Feb 5, 2025
Legislature · Passed
Senate/ signed by President/ sent for enrolling
legislature
Feb 4, 2025
Upper · Passed
House/ signed by Speaker/ returned to Senate
upper
Feb 4, 2025
Lower · Passed
Senate/ concurs with House amendment
lower
Jan 31, 2025
Upper · Passed
House/ passed 3rd reading
upper
Jan 28, 2025
Lower · Passed
House/ committee report favorable
lower
Jan 27, 2025
Lower · Passed
House Comm - Favorable Recommendation
lower
Jan 23, 2025
Committee
House/ to standing committee
lower
Jan 22, 2025
Introduced
House/ 1st reading (Introduced)
lower
Jan 21, 2025
Introduced
Senate/ 1st reading (Introduced)
upper
1 primary · 1 co-sponsor

Sponsors