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HB1257 • 2026

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

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.

Housing Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Steverson
Last action
2026-02-03
Official status
Dead
Effective date
July 1, 20

Plain English Breakdown

Checked against official source text during the last sync.

Heavy Equipment Rental Recovery Fee Act

This bill allows certain businesses to charge a recovery fee on heavy equipment rentals and specifies how the fees are used.

What This Bill Does

  • Allows qualified heavy equipment rental businesses to charge a recovery fee of up to two percent of the rental cost for each item rented.
  • Requires that the recovery fee be listed separately on invoices or receipts.
  • Makes the recovery fee enforceable like other charges on the invoice.
  • Specifies that collected fees must be used to pay ad valorem taxes on heavy equipment owned by the business.

Who It Names or Affects

  • Heavy equipment rental businesses
  • People who rent heavy equipment

Terms To Know

Qualified Heavy Equipment Rental Business
A business whose main activity is renting out construction or industrial equipment.
Ad Valorem Taxes
Taxes based on the value of property, such as real estate or personal property like heavy equipment.

Limits and Unknowns

  • The bill did not pass and was not signed into law.
  • It only applies to businesses that meet specific criteria for renting heavy equipment.

Bill History

  1. 2026-02-03 Mississippi Legislative Bill Status System

    02/03 (H) Died In Committee

  2. 2026-01-19 Mississippi Legislative Bill Status System

    01/19 (H) Referred To Business and Commerce

Official Summary Text

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

Current Bill Text

Read the full stored bill text 
H. B. No. 1257 *HR26/R2081* ~ OFFICIAL ~ G1/2
26/HR26/R2081
PAGE 1 (BS\KW)

To: Business and Commerce
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Steverson

HOUSE BILL NO. 1257

AN ACT TO PROVIDE THAT A QUALIFIED HEAVY EQUIPMENT RENTAL 1
BUSINESS MAY CHARGE TO A RENTER A RECOVERY FEE IN AN AMOUNT NOT TO 2
EXCEED TWO PERCENT OF THE RENTAL CHARGE FOR EACH ITEM OF HEAVY 3
EQUIPMENT RENTED IN THIS STATE; TO PROVIDE THAT A RECOVERY FEE 4
SHALL BE SEPARATELY STATED ON THE INVOICE OR RECEIPT FOR THE 5
RENTAL TRANSACTION AND SHALL BE ENFORCEABLE BY THE QUALIFIED HEAVY 6
EQUIPMENT RENTAL BUSINESS TO THE SAME EXTENT AS THE UNDERLYING 7
RENTAL CHARGES OR OTHER CHARGES CONTAINED ON SUCH INVOICE OR 8
RECEIPT; TO PROVIDE THAT RECOVERY FEES COLLECTED BY A QUALIFIED 9
HEAVY EQUIPMENT RENTAL BUSINESS SHALL BE USED TO PAY OR AS A 10
REIMBURSEMENT FOR THE PAYMENT OF ANY AD VALOREM TAXES LEVIED OR 11
ASSESSED ON THE QUALIFIED RENTAL BUSINESS'S HEAVY EQUIPMENT IN THE 12
STATE; TO DEFINE THE TERMS "HEAVY EQUIPMENT PROPERTY", "QUALIFIED 13
HEAVY EQUIPMENT RENTAL BUSINESS", "RENT" AND "RENTAL CHARGE" FOR 14
THE PURPOSES OF THIS ACT; AND FOR RELATED PURPOSES. 15
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 16
SECTION 1. (1) For the purposes of this section, the 17
following words and phrases shall have the meanings ascribed in 18
this subsection unless the context clearly indicates otherwise: 19
(a) "Heavy equipment property" means any and all 20
tangible personal property owned by a qualified heavy equipment 21
rental business that: 22
H. B. No. 1257 *HR26/R2081* ~ OFFICIAL ~
26/HR26/R2081
PAGE 2 (BS\KW)

(i) Is owned for purposes of renting, 23
notwithstanding that such items may also be sold in the regular 24
course of business; 25
(ii) Is utilized or designed for construction, 26
earthmoving, or industrial operations; and 27
(iii) Is portable and transferable to the location 28
in which the heavy equipment is to be used. 29
(b) "Qualified heavy equipment rental business" means a 30
business that satisfies the following: 31
(i) The principal business of the business is the 32
rental of heavy equipment property; and/or 33
(ii) The business is engaged in a line of business 34
described in Code 532310 or 532412 of the North American Industry 35
Classification System published by the United States Office of 36
Management and Budget, 2022 Edition. 37
(c) "Rent", "rental" or "renting" means entering into 38
an agreement with a qualified heavy equipment rental business in 39
this state for the use of heavy equipment property in this state 40
in exchange for consideration of a period: 41
(i) Not to exceed three hundred sixty-five (365) 42
days; or 43
(ii) That is open-ended under the terms of the 44
rental contract with no specified end date. 45
(d) "Rental charge" means the total amount of the 46
charge for renting the heavy equipment property and attachments, 47
H. B. No. 1257 *HR26/R2081* ~ OFFICIAL ~
26/HR26/R2081
PAGE 3 (BS\KW)

but excluding any separately stated charges that are not rental 48
charges, including such as separately stated charges for delivery 49
and pickup fees, damage waivers, environmental mitigation fees, 50
sales tax reimbursement, or use taxes. 51
(2) A qualified heavy equipment rental business may charge 52
to a renter a recovery fee in an amount not to exceed two percent 53
(2%) of the rental charge for each item of heavy equipment rented 54
in this state. 55
(3) Any recovery fee charged under subsection (2) of this 56
section shall be separately stated on the invoice or receipt for 57
the rental transaction and shall be enforceable by the qualified 58
heavy equipment rental business to the same extent as the 59
underlying rental charges or other charges contained on such 60
invoice or receipt. 61
(4) Recovery fees collected by a qualified heavy equipment 62
rental business shall be used to pay or as a reimbursement for the 63
payment of any ad valorem taxes levied or assessed on the 64
qualified rental business's heavy equipment in the state. Any 65
recovery fees collected that exceed the ad valorem taxes levied 66
upon a qualified heavy equipment rental business in any year may 67
be held and applied to ad valorem taxes levied or assessed on the 68
qualified rental business's heavy equipment in the state in any 69
subsequent year. 70
H. B. No. 1257 *HR26/R2081* ~ OFFICIAL ~
26/HR26/R2081
PAGE 4 (BS\KW)
ST: Heavy equipment property; authorize certain
businesses to charge recovery fee on rental of.
(4) Recovery fees collected by a qualified rental business 71
do not constitute trust fund monies in the hands of the qualified 72
heavy equipment rental business. 73
SECTION 2. This act shall take effect and be in force from 74
and after July 1, 2026. 75