AB 2749 Summary

• Establishes a rebuttable presumption that parties agreed to add estimated personal property tax reimbursement to heavy equipment rental prices if the rental agreement expressly provides for it, separately states the charge, and discloses that excess amounts will be remitted to the State Board of Equalization for deposit into the General Fund.

• Caps estimated personal property tax reimbursement at 0.75 percent of the rental price of heavy equipment property.

• Requires all qualified heavy equipment renters to register with the State Board of Equalization and file annual returns by September 30 showing ad valorem property taxes levied and property tax reimbursement collected for the preceding 12-month period ending August 31.

• Requires qualified heavy equipment renters to remit excess property tax reimbursement (amounts collected above actual taxes owed) to the State Board of Equalization annually by September 30, with all revenues deposited into the General Fund.

• Authorizes the State Board of Equalization to collect excess reimbursement amounts using procedures under the Fee Collection Procedures Law, which carries criminal penalties for violations.