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HB 0056 - Equipment Rental Leases - Property tax recovery fees
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Tracking Level: Neutral
Sponsor: Ron Stephens (R)
Last Action: 2/22/2017 - House Withdrawn, Recommitted
House Committee: Transportation
Assigned To:
Business and Occupation TaxNext Bill
Larry RamseyNext Bill
Property TaxNext Bill

Staff Analysis of the Legislation

 This bill provides for a 'property tax recovery fee' on the rental of construction, industrial, maritime, or mining equipment that is rented without a driver or operator. While the definition in subsection (a) and the internal references are all to a 'fee', subsection (f) states that this charge is a tax.

The 'fee' is in the amount of 1.5% of the total rental charge (minus some exclusions) and applies to lease agreements which are either: 1) 365 days or less; or 2) for an open or unspecified period of time. The 'fee' is purportedly to pay the lessor's (rental company's) property tax liability on rental equipment. However, if the lessor collects more than the amount of that property tax liability, the excess amount plus any interest, goes to the state and not to local government. The 'fee' commences January 1, 2018, and ceases December 31, 2022.

Bill Summary from the State Site - Click for the State Summary Page / Click for Current Full Text

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