Recovery fee for rental of heavy equipment -- Commission study and report

(1) A qualified rental business may charge to a renter a fee in an amount equal to 1.5% of the rental charge for each item of heavy equipment rented in this state. (2) A recovery fee under Subsection (1): (a) shall be separately stated on the invoice or receipt for the rental transaction; and (b) is not subject to a sales and use tax under Chapter 12, Sales and Use Tax Act. (3) A qualified rental business may not charge a recovery fee to a renter that is a governmental entity as defined in Section 59-2-511. (4) Any amount of recovery fees collected by a qualified rental business during a calendar year shall be used as reimbursement for property taxes paid by the qualified rental business on heavy equipment in the same calendar year. (5) (a) The commission shall: (i) in coordination with county assessors and the program manager, conduct a study to determine the need for adjustment to the rate authorized under Subsection (1) for purposes of property tax reimbursement; and (ii) on or before September 30, 2027, provide to the Revenue and Taxation Interim Committee an electronic report of the results of the study required under Subsection (5)(a)(i), including any recommendations, based on information received by the commission, for legislative changes to the rate authorized under Subsection (1). (b) Upon request by the commission, a county assessor or the program manager shall provide to the commission any information necessary to complete the study required under Subsection (5)(a)(i).