June 13, 2024
A dramatic turn of events took place on Thursday, May 27, 2024, that will deliver tax relief to Oklahoma equipment rental businesses.
The Oklahoma Legislature overrode Gov. Kevin Stitt’s veto in April of SB 1438 — a bill authorizing rental companies in the state to charge a “recovery fee” of 1.25 percent on the rental charge from any item of heavy equipment property rental by a customer. Revenues from the fee may be used to pay personal property taxes.
Following Gov. Stitt’s veto of the bill, the Legislature utilized a procedural 2/3 approval requirement to override, with a vote of 35 in favor to 9 against in the Senate and 71 in favor to 14 against in the House.
“In my almost 30 years of lobbying I’ve never really seen anything like this,” says John McClelland, American Rental Association vice president, government affairs and chief economist. “This veto override occurred on the last day of session and in fact was the last order of business for the House before they adjourned until next year.”
Once it takes effect on Nov. 1, 2024, the law will be permissive, meaning the charging of the recovery fee authorized by SB 1438 will be optional for rental operators.
View the full text of SB 1438, including a listing of parties to which the recovery fee is not applicable.
“This outcome tells me that in lobbying, in sports, and in life in general, never giving up is always the best policy. We never gave up and we now have a significant victory for Oklahoma rental businesses going forward,” McClelland says.
For questions, contact McClelland at john.mcclelland@ararental.org.
