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SB2878 • 2026

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

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.

Housing Taxes
Did Not Pass

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

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

Plain English Breakdown

The bill did not pass, so it has no legal effect.

Ad Valorem Taxes; Recovery Fee for Heavy Equipment Rental

This bill allows qualified heavy equipment rental businesses to charge a recovery fee of up to 2% of the rental cost from renters to cover ad valorem taxes on their equipment.

What This Bill Does

  • Allows qualified heavy equipment rental businesses to charge a recovery fee not exceeding 2% of the rental charge for each item rented in Mississippi.
  • Requires that any recovery fees collected must be used to pay or reimburse ad valorem taxes levied on the business's heavy equipment.
  • Permits excess recovery fees from one year to be applied towards future years' tax payments.

Who It Names or Affects

  • Qualified heavy equipment rental businesses in Mississippi
  • Renters of heavy equipment

Terms To Know

Ad valorem taxes
Taxes based on the value of property, such as real estate or personal property.
Heavy equipment rental business
A company that primarily rents out heavy machinery and equipment for construction, earthmoving, or industrial operations.

Limits and Unknowns

  • The bill did not pass in the session it was introduced.
  • It does not provide specific details on how recovery fees will be enforced or collected beyond being separately stated on invoices.

Bill History

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

    02/03 (S) Died In Committee

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

    01/19 (S) Referred To Finance

Official Summary Text

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

Current Bill Text

Read the full stored bill text 
S. B. No. 2878 *SS08/R1149* ~ OFFICIAL ~ G3/5
26/SS08/R1149
PAGE 1 (icj\kr)

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Fillingane

SENATE BILL NO. 2878

AN ACT TO ALLOW A QUALIFIED HEAVY EQUIPMENT RENTAL BUSINESS 1
TO CHARGE TO A RENTER A RECOVERY FEE IN AN AMOUNT NOT TO EXCEED 2% 2
OF THE RENTAL CHARGE FOR EACH ITEM OF HEAVY EQUIPMENT RENTED IN 3
THIS STATE; TO PROVIDE THAT SUCH A FEE SHALL BE USED TO PAY OR AS 4
A REIMBURSEMENT FOR THE PAYMENT OF ANY AD VALOREM TAXES LEVIED OR 5
ASSESSED ON THE QUALIFIED RENTAL BUSINESS'S HEAVY EQUIPMENT IN THE 6
STATE; TO PROVIDE THAT ANY RECOVERY FEES COLLECTED THAT EXCEED THE 7
AD VALOREM TAXES LEVIED UPON A QUALIFIED HEAVY EQUIPMENT RENTAL 8
BUSINESS IN ANY YEAR MAY BE HELD AND APPLIED TO TAXES LEVIED OR 9
ASSESSED IN ANY SUBSEQUENT YEAR; AND FOR RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. (1) As used in this section, the following terms 12
have the meanings ascribed below unless a contrary meaning is 13
evident from the context: 14
(a) "Heavy equipment property" means any and all 15
tangible personal property owned by a qualified heavy equipment 16
rental business that: 17
(i) Is owned for purposes of renting, 18
notwithstanding that such items may also be sold in the regular 19
course of business; 20
(ii) Is utilized or designed for construction, 21
earthmoving, or industrial operations; and 22
S. B. No. 2878 *SS08/R1149* ~ OFFICIAL ~
26/SS08/R1149
PAGE 2 (icj\kr)

(iii) Is portable and transferable to the location 23
in which the heavy equipment is to be used. 24
(b) "Qualified heavy equipment rental business" means a 25
business that satisfies the following: 26
(i) The principal business of the business is the 27
rental of heavy equipment property; or 28
(ii) The business is engaged in a line of business 29
described in Code 532310 or 532412 of the North American Industry 30
Classification System published by the United States Office of 31
Management and Budget, 2022 edition. 32
(c) "Rent," "rental," or "renting" means entering into 33
an agreement with a qualified heavy equipment rental business in 34
this state for the use of heavy equipment property in this state 35
in exchange for consideration of a period: 36
(i) Not to exceed three hundred sixty-five (365) 37
days; or 38
(ii) That is open-ended under the terms of the 39
rental contract with no specified end date. 40
(d) "Rental charge" means the total amount of the 41
charge for renting the heavy equipment property and attachments, 42
but excluding any separately stated charges that are not rental 43
charges, such as separately stated charges for delivery and pickup 44
fees, damage waivers, environmental mitigation fees, sales tax 45
reimbursement, or use taxes. 46
S. B. No. 2878 *SS08/R1149* ~ OFFICIAL ~
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(2) A qualified heavy equipment rental business may charge 47
to a renter a recovery fee in an amount not to exceed two percent 48
(2%) of the rental charge for each item of heavy equipment rented 49
in this state. 50
(3) Any recovery fee charged under subsection (2) of this 51
section shall be separately stated on the invoice or receipt for 52
the rental transaction and shall be enforceable by the qualified 53
heavy equipment rental business to the same extent as the 54
underlying rental charges or other charges contained on such 55
invoice or receipt. 56
(4) Any recovery fees collected by a qualified heavy 57
equipment rental business shall be used to pay or as a 58
reimbursement for the payment of any ad valorem taxes levied or 59
assessed on the qualified rental business's heavy equipment in the 60
state. Any recovery fees collected that exceed the ad valorem 61
taxes levied upon a qualified heavy equipment rental business in 62
any year may be held and applied to taxes levied or assessed in 63
any subsequent year. 64
(5) Any recovery fees collected by a qualified rental 65
business do not constitute trust fund monies in the hands of the 66
qualified heavy equipment rental business. 67
(6) Nothing in this section shall give rise to any exclusion 68
or exemption of any heavy equipment rental property from ad 69
valorem, income, sale, use or other taxes imposed by this state, 70
S. B. No. 2878 *SS08/R1149* ~ OFFICIAL ~
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PAGE 4 (icj\kr)
ST: Ad valorem taxes; authorize heavy equipment
rental businesses to collect recovery fee from
renters for payment of.
nor shall it limit or restrict any other exclusion or exemption 71
now or hereafter existing under the laws of this state. 72
SECTION 2. This act shall take effect and be in force from 73
and after July 1, 2026. 74