Alabama 2023 Regular Session

Alabama House Bill HB459 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB459INTRODUCED
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3	3	OKTVWW-1
4	4	By Representatives Rafferty, Gray
5	5	RFD: Economic Development and Tourism
6	6	First Read: 11-May-23
7	7	2023 Regular Session
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13	13	6 OKTVWW-1 05/022023 SLU (L) bm 2023-1871
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15	15	SYNOPSIS:
16	16	This bill would authorize peer-to-peer car
17	17	sharing programs, which are business platforms that
18	18	connect vehicle owners with drivers to enable the
19	19	sharing of vehicles for financial consideration, in
20	20	this state.
21	21	This bill would provide requirements for the
22	22	operation of a peer-to-peer car sharing program,
23	23	including insurance requirements, notification
24	24	requirements, recordkeeping and reporting requirements,
25	25	liability requirements, consumer protection disclosure
26	26	requirements, and safety recall requirements.
27	27	This bill would also provide that lessors of
28	28	vehicles used in peer-to-peer car sharing in the state
29	29	who have paid taxes due upon purchase of the vehicle in
30	30	the jurisdiction where it was purchased, shall not be
31	31	subject to privilege or license taxes on gross proceeds
32	32	of vehicle rental or leasing.
33	33	A BILL
34	34	TO BE ENTITLED
35	35	AN ACT
36	36	Relating to motor vehicles; establishing the
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66	66	Peer-to-Peer Car Sharing Program Act; to provide for the
67	67	operation of peer-to-peer car sharing programs in the state;
68	68	and to amend Section 40-12-222, Code of Alabama 1975, to
69	69	exclude lessors of peer-to-peer car sharing vehicles from
70	70	liability for certain taxes on the proceeds of vehicle rental
71	71	and leasing.
72	72	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
73	73	Section 1. This section shall be known and may be cited
74	74	as the Peer-to-Peer Car Sharing Program Act.
75	75	Section 2. (a) As used in this section, the following
76	76	words have the following meanings:
77	77	(1) CAR SHARING DELIVERY PERIOD or DELIVERY PERIOD. The
78	78	period of time during which a shared vehicle is being
79	79	delivered to the location of the car sharing start time, if
80	80	applicable, as documented by the governing car sharing program
81	81	agreement.
82	82	(2) CAR SHARING PERIOD or SHARING PERIOD. The period of
83	83	time that commences with the car sharing delivery period or,
84	84	if there is no car sharing delivery period, that commences
85	85	with the car sharing start time and, in either case, ends at
86	86	the car sharing termination time.
87	87	(3) CAR SHARING START TIME or START TIME. The time when
88	88	the shared vehicle becomes subject to the control of the
89	89	shared vehicle driver, at or after the time the reservation of
90	90	a shared vehicle is scheduled to begin, as documented in the
91	91	records of a peer-to-peer car sharing program.
92	92	(4) CAR SHARING TERMINATION TIME or TERMINATION TIME.
93	93	The earliest of the following events:
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123	123	a. The expiration of the agreed-upon period of time
124	124	established for the use of a shared vehicle according to the
125	125	terms of the car sharing program agreement, if the shared
126	126	vehicle is delivered to the location agreed upon in the car
127	127	sharing program agreement.
128	128	b. When the shared vehicle is returned to a location as
129	129	alternatively agreed upon by the shared vehicle owner and the
130	130	shared vehicle driver as communicated through a peer-to-peer
131	131	car sharing program, which alternatively agreed upon location
132	132	shall be incorporated into the car sharing program agreement.
133	133	c. When the shared vehicle owner, or the shared vehicle
134	134	owner's authorized designee, takes possession and control of
135	135	the shared vehicle.
136	136	(5) PEER-TO-PEER CAR SHARING or SHARING. The authorized
137	137	use of a vehicle by an individual other than the vehicle's
138	138	owner through a peer-to-peer car sharing program. The term
139	139	does not include a rental or leasing transaction of tangible
140	140	personal property which is subject to Article 4 of Chapter 12
141	141	of Title 40, Code of Alabama 1975, except as provided by
142	142	Section 40-12-222(a)(2), Code of Alabama 1975.
143	143	(6) PEER-TO-PEER CAR SHARING PROGRAM. A business
144	144	platform that connects vehicle owners with drivers to enable
145	145	the sharing of vehicles for financial consideration. The term
146	146	does not include any of the following:
147	147	a. A person engaging or continuing within this state in
148	148	the business of leasing or renting any automotive vehicle or
149	149	truck trailer, semitrailer, or house trailer which is subject
150	150	to Article 4 of Chapter 12 of Title 40, Code of Alabama 1975.
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180	180	b. A person facilitating a rental transaction of
181	181	tangible personal property which is subject to Article 4 of
182	182	Chapter 12 of Title 40, Code of Alabama 1975.
183	183	c. A motor vehicle rental company licensed pursuant to
184	184	Section 27-7-5.1, Code of Alabama 1975.
185	185	d. A person facilitating rental transactions as used in
186	186	Section 40-2-11(7)(c), Code of Alabama 1975.
187	187	(7) PEER-TO-PEER CAR SHARING PROGRAM AGREEMENT or
188	188	AGREEMENT. The terms and conditions applicable to a shared
189	189	vehicle owner and a shared vehicle driver that govern the use
190	190	of a shared vehicle through a peer-to-peer car sharing
191	191	program. The term does not include any of the following;
192	192	a. A car rental service provider solely providing
193	193	hardware or software as a service to a person or entity that
194	194	is not effectuating payment of financial consideration for the
195	195	use of a shared vehicle.
196	196	b. A motor vehicle rental agreement governed by Section
197	197	32-15-6, Code of Alabama 1975.
198	198	c. Hiring, leasing, or renting a motor vehicle under a
199	199	rental agreement governed by Section 32-15-6, Code of Alabama.
200	200	d. A rental agreement with a motor vehicle rental
201	201	company licensed pursuant to Section 27-7-5.1, Code of Alabama
202	202	1975.
203	203	(8) SHARED VEHICLE or VEHICLE. A vehicle that is
204	204	available for sharing through a peer-to-peer car sharing
205	205	program. The term does not include an automotive vehicle or a
206	206	truck trailer, semitrailer, or house trailer that is subject
207	207	to Article 4 of Chapter 12 of Title 40, Code of Alabama 1975,
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237	237	except as provided by Section 40-12-222(a)(2), Code of Alabama
238	238	1975.
239	239	(9) SHARED VEHICLE DRIVER or DRIVER. An individual who
240	240	has been authorized to drive the shared vehicle by the shared
241	241	vehicle owner under a car sharing program agreement. The term
242	242	does not include a person hiring, leasing, or renting a motor
243	243	vehicle under an agreement with a motor vehicle rental company
244	244	licensed pursuant to Section 27-7-5.1, Code of Alabama 1975.
245	245	(10) SHARED VEHICLE OWNER or OWNER. The registered
246	246	owner, or a person or entity designated by the registered
247	247	owner, of a vehicle made available for sharing to shared
248	248	vehicle drivers through a peer-to-peer car sharing program.
249	249	The term does not include any of the following:
250	250	a. A lessor that is subject to Article 4 of Chapter 12
251	251	of Title 40, Code of Alabama 1975, except as provided by
252	252	Section 40-12-222(a)(2), Code of Alabama 1975.
253	253	b. A motor vehicle rental company licensed pursuant to
254	254	Section 27-7-5.1, Code of Alabama 1975.
255	255	Section 3.(a) Except as provided in subsection (b), a
256	256	peer-to-peer car sharing program shall assume liability of a
257	257	shared vehicle owner for bodily injury or property damage to
258	258	third parties or uninsured and underinsured motorists or
259	259	personal injury protection losses during the car sharing
260	260	period, in an amount stated in the peer-to-peer car sharing
261	261	program agreement. The amount shall not be less than the proof
262	262	of financial responsibility required under Chapter 7, Title
263	263	32, Code of Alabama 1975.
264	264	(b) Notwithstanding the definition of "car sharing
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294	294	termination time," the assumption of liability under
295	295	subsection (a) does not apply to any shared vehicle owner
296	296	under any of the following circumstances:
297	297	(1) When a shared vehicle owner makes an intentional
298	298	or fraudulent material misrepresentation or omission to the
299	299	peer-to-peer car sharing program before the car sharing period
300	300	in which the loss occurred.
301	301	(2) When a shared vehicle owner acts in concert with a
302	302	shared vehicle driver who fails to return the shared vehicle
303	303	pursuant to the terms of the car sharing program agreement.
304	304	(3) In the event of bodily injury, property damage,
305	305	uninsured and underinsured motorist or personal injury
306	306	protection losses by damaged third parties required under
307	307	Chapter 7 of Title 32, Code of Alabama 1975.
308	308	(c) A peer-to-peer car sharing program shall ensure
309	309	that, during each car sharing period, the shared vehicle owner
310	310	and the shared vehicle driver are insured under a motor
311	311	vehicle liability insurance policy that does all of the
312	312	following:
313	313	(1) Provides insurance coverage in amounts no less than
314	314	the minimum amounts required for proof of financial
315	315	responsibility under Section 32-7-2, Code of Alabama 1975.
316	316	(2) Does either of the following:
317	317	a. Recognizes that the shared vehicle insured under the
318	318	policy is made available and used through a peer-to-peer car
319	319	sharing program.
320	320	b. Does not exclude the use of a shared vehicle by a
321	321	shared vehicle driver.
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351	351	(d) The insurance required under subsection (c) may be
352	352	purchased by any of the following:
353	353	(1) A shared vehicle owner.
354	354	(2) A shared vehicle driver.
355	355	(3) A peer-to-peer car sharing program.
356	356	(4) Any combination of a shared vehicle owner, a shared
357	357	vehicle driver, and a peer-to-peer car sharing program.
358	358	(e) The insurance required in subsection (d), that is
359	359	satisfying the requirement of subsection (c), shall be primary
360	360	during each car sharing period, and in the event that a claim
361	361	occurs in another state with minimum financial responsibility
362	362	limits higher than those set forth in Section 32-7-2, Code of
363	363	Alabama 1975, during the car sharing period, the coverage
364	364	maintained under subsection (d) shall satisfy the difference
365	365	in minimum coverage amounts, up to the applicable policy
366	366	limits.
367	367	(f) The insurer, insurers, or peer-to-peer car sharing
368	368	program providing coverage under subsection (c) or (d) shall
369	369	assume primary liability for a claim when either of the
370	370	following occurs:
371	371	(1) A dispute exists as to who was in control of the
372	372	shared motor vehicle at the time of the loss, and the
373	373	peer-to-peer car sharing program does not have available, did
374	374	not retain, or fails to provide the information required by
375	375	Section 6.
376	376	(2) A dispute exists as to whether the shared vehicle
377	377	was returned to the alternatively agreed upon location, as
378	378	required under Section 2(4)(b).
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408	408	(g) If insurance maintained by a shared vehicle owner
409	409	or shared vehicle driver in accordance with subsection (d) has
410	410	lapsed or does not provide the required coverage, insurance
411	411	maintained by a peer-to-peer car sharing program shall provide
412	412	the coverage required by subsection (c) beginning with the
413	413	first dollar of a claim and shall have the duty to defend such
414	414	claim except under circumstances as set forth in subsection
415	415	(b).
416	416	(h) Coverage under an automobile insurance policy
417	417	maintained by the peer-to-peer car sharing program may not be
418	418	dependent on another automobile insurer first denying a claim,
419	419	and may not require another automobile insurance policy to
420	420	first deny a claim.
421	421	(i) Nothing in this section does any of the following:
422	422	(1) Limits the ability of a peer-to-peer car sharing
423	423	program for any act or omission of the peer-to-peer car
424	424	sharing program itself that results in injury to any person as
425	425	a result of the use of a shared vehicle through a peer-to-peer
426	426	car sharing program.
427	427	(2) Limits the ability of the peer-to-peer car sharing
428	428	program to seek indemnification, by contract, from the shared
429	429	vehicle owner or the shared vehicle driver for economic loss
430	430	sustained by the peer-to-peer car sharing program resulting
431	431	from a breach of the terms and conditions of the car sharing
432	432	program agreement.
433	433	Section 4. When a vehicle owner registers as a shared
434	434	vehicle owner on a peer-to-peer car sharing program, and
435	435	before the shared vehicle owner makes a shared vehicle
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465	465	available for car sharing on the peer-to-peer car sharing
466	466	program, the peer-to-peer car sharing program shall notify the
467	467	shared vehicle owner that, if the shared vehicle has a lien
468	468	against it, the use of the shared vehicle through a
469	469	peer-to-peer car sharing program, including use without
470	470	physical damage coverage, may violate the terms of the
471	471	contract with the lien holder.
472	472	Section 5. (a) An authorized insurer that writes motor
473	473	vehicle liability insurance in this state may exclude any and
474	474	all coverage and the duty to defend or indemnify for any claim
475	475	afforded under a shared vehicle owner's motor vehicle
476	476	liability insurance policy, including, but not limited to, all
477	477	of the following:
478	478	(1) Liability coverage for bodily injury and property
479	479	damage.
480	480	(2) Personal injury protection coverage.
481	481	(3) Uninsured and underinsured motorist coverage.
482	482	(4) Medical payments coverage.
483	483	(5) Comprehensive physical damage coverage.
484	484	(6) Collision physical damage coverage.
485	485	(b) Nothing in this act invalidates or limits an
486	486	exclusion contained in a motor vehicle liability insurance
487	487	policy, including any insurance policy in use or approved for
488	488	use that excludes coverage for motor vehicles made available
489	489	for rent, sharing, hire, or for any business use.
490	490	(c) Nothing in this act invalidates, limits, or
491	491	restricts an insurer's ability under existing law to
492	492	underwrite any insurance policy. Nothing in this act
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522	522	invalidates, limits, or restricts an insurer's ability under
523	523	existing law to cancel and nonrenew policies.
524	524	Section 6. (a) A peer-to-peer car sharing program
525	525	shall collect and verify records pertaining to the use of all
526	526	vehicles used in a peer-to-peer car sharing program,
527	527	including, but not limited to, all of the following:
528	528	(1) The number of times the vehicle is used.
529	529	(2) Car sharing period pick up and drop off locations.
530	530	(3) Fees paid by the shared vehicle driver.
531	531	(4) Revenues received by the shared vehicle owner.
532	532	(b) To facilitate a claim coverage investigation,
533	533	settlement, negotiation, and litigation, the peer-to-peer car
534	534	sharing program, upon request, shall provide the records
535	535	collected under subsection (a) to the shared vehicle owner,
536	536	the shared vehicle owner's insurer, or the shared vehicle
537	537	driver's insurer.
538	538	(c) The peer-to-peer car sharing program shall retain
539	539	the records for a time period not less than the applicable
540	540	personal injury statute of limitations.
541	541	Section 7. A peer-to-peer car sharing program and a
542	542	shared vehicle owner shall not be liable, vicariously or
543	543	otherwise, by reason of making a shared vehicle available for
544	544	use through the peer-to-peer car sharing program or by being
545	545	the owner of a shared vehicle, for harm to persons or property
546	546	that occurs during the car sharing period.
547	547	Section 8. A motor vehicle insurer that defends or
548	548	indemnifies a claim against a shared vehicle that is excluded
549	549	under the terms of its policy shall have the right to seek
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579	579	contribution against the motor vehicle insurer of the
580	580	peer-to-peer car sharing program if the claim is both of the
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582	582	(1) Made against the shared vehicle owner or the shared
583	583	vehicle driver for loss or injury that occurs during the car
584	584	sharing period.
585	585	(2) Excluded under the terms of its policy.
586	586	Section 9. (a) Notwithstanding any law to the
587	587	contrary, a peer-to-peer car sharing program shall have an
588	588	insurable interest in a shared vehicle during the car sharing
589	589	period.
590	590	(b) Nothing in this section shall create liability on a
591	591	peer-to-peer car sharing program to maintain the coverage
592	592	mandated by Section 3.
593	593	(c) A peer-to-peer car sharing program may own and
594	594	maintain as the named insured one or more policies of motor
595	595	vehicle liability insurance that provide coverage for any of
596	596	the following:
597	597	(1) Liabilities assumed by the peer-to-peer car sharing
598	598	program under a peer-to-peer car sharing program agreement.
599	599	(2) Any liability of the shared vehicle owner.
600	600	(3) Damage or loss to the shared motor vehicle.
601	601	(4) Any liability of the shared vehicle driver.
602	602	Section 10. Each car sharing program agreement made in
603	603	this state shall disclose to the shared vehicle owner and the
604	604	shared vehicle driver all of the following:
605	605	(1) Any right of the peer-to-peer car sharing program
606	606	to seek indemnification from the shared vehicle owner or the
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636	636	shared vehicle driver for economic loss sustained by the
637	637	peer-to-peer car sharing program resulting from a breach of
638	638	the terms and conditions of the car sharing program agreement.
639	639	(2) That a motor vehicle liability insurance policy
640	640	issued to the shared vehicle owner for the shared vehicle, or
641	641	to the shared vehicle driver, does not provide a defense or
642	642	indemnification for any claim asserted by the peer-to-peer car
643	643	sharing program.
644	644	(3) That the peer-to-peer car sharing program's
645	645	insurance coverage on the shared vehicle owner and the shared
646	646	vehicle driver is in effect only during each car sharing
647	647	period and that, for any use of the shared vehicle by the
648	648	shared vehicle driver after the car sharing termination time,
649	649	the shared vehicle driver and the shared vehicle owner may not
650	650	have insurance coverage.
651	651	(4) The daily rate, fees, and if applicable, any
652	652	insurance or protection package costs, that are charged to the
653	653	shared vehicle owner or the shared vehicle driver.
654	654	(5) That the shared vehicle owner's motor vehicle
655	655	liability insurance may not provide coverage for a shared
656	656	vehicle.
657	657	(6) An emergency telephone number to personnel capable
658	658	of fielding roadside assistance and other customer service
659	659	inquiries.
660	660	(7) Whether there are conditions under which a shared
661	661	vehicle driver must maintain a personal automobile insurance
662	662	policy with certain applicable coverage limits on a primary
663	663	basis in order to book a shared motor vehicle.
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693	693	Section 11. (a) A peer-to-peer car sharing program may
694	694	not enter into a peer-to-peer car sharing program agreement
695	695	with an individual who will operate the shared vehicle unless
696	696	he or she meets any of the following requirements:
697	697	(1) Holds a driver license issued under Section 32-6-1,
698	698	Code of Alabama 1975, that authorizes him or her to operate
699	699	vehicles of the class of the shared vehicle.
700	700	(2) Is a nonresident who meets both of the following
701	701	requirements:
702	702	a. Has a driver license issued by the state or country
703	703	of his or her residence which authorizes him or her to drive
704	704	vehicles of the class of the shared vehicle.
705	705	b. Is 16 or more years of age.
706	706	(3) Is specifically authorized by Section 32-6-2, Code
707	707	of Alabama 1975, to drive vehicles of the class of the shared
708	708	vehicle.
709	709	(b) A peer-to-peer car sharing program shall keep a
710	710	record of all of the following:
711	711	(1) The name and address of the shared vehicle driver.
712	712	(2) The driver license of the shared vehicle driver and
713	713	each other person, if any, who will operate the shared
714	714	vehicle.
715	715	(3) The place of issuance of the driver license.
716	716	Section 12. (a) A peer-to-peer car sharing program
717	717	shall have sole responsibility for any equipment, including a
718	718	Global Positioning System or other special equipment, that is
719	719	placed in or on the vehicle to monitor or facilitate the car
720	720	sharing transaction.
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750	750	(b) A peer-to-peer car sharing program shall indemnify
751	751	and hold harmless the shared vehicle owner for any damage to
752	752	or theft of such equipment during the sharing period not
753	753	caused by the vehicle owner.
754	754	(c) A peer-to-peer car sharing program may seek
755	755	indemnity from the shared vehicle driver for any loss or
756	756	damage to such equipment that occurs during the sharing
757	757	period.
758	758	Section 13. (a) When a vehicle owner registers as a
759	759	shared vehicle owner on a peer-to-peer car sharing program,
760	760	and before a shared vehicle owner makes a shared vehicle
761	761	available for car sharing on the peer-to-peer car sharing
762	762	program, the peer-to-peer car sharing program shall do both of
763	763	the following:
764	764	(1) Verify that the shared vehicle does not have any
765	765	safety recalls on the vehicle for which the repairs have not
766	766	been made.
767	767	(2) Notify the shared vehicle owner of the requirements
768	768	under subsection (b).
769	769	(b)(1) If a shared vehicle owner has received an actual
770	770	notice of a safety recall on the vehicle, the shared vehicle
771	771	owner may not make a vehicle available as a shared vehicle on
772	772	a peer-to-peer car sharing program until the safety recall
773	773	repair has been made.
774	774	(2) If a shared vehicle owner receives an actual notice
775	775	of a safety recall on a shared vehicle while the shared
776	776	vehicle is made available on the peer-to-peer car sharing
777	777	program, the shared vehicle owner shall change the status of
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807	807	the vehicle to unavailable as soon as practicably possible.
808	808	The shared vehicle may not be listed as available until the
809	809	safety recall repair has been made.
810	810	(3) If a shared vehicle owner receives an actual notice
811	811	of a safety recall on a shared vehicle while the shared
812	812	vehicle is in the possession of a shared vehicle driver and
813	813	engaged in peer-to-peer car sharing during a sharing period,
814	814	the shared vehicle owner shall notify the peer-to-peer car
815	815	sharing program about the safety recall as soon as practicably
816	816	possible after receiving the notice of the safety recall. The
817	817	shared vehicle may not be listed as available until the safety
818	818	recall repair has been made.
819	819	Section 14. Nothing in this act shall expand or
820	820	restrict in any manner the respective rights, obligations, and
821	821	limitations of motor vehicle manufacturers and licensed new
822	822	motor vehicle dealers as set forth in Title 8, Chapter 20,
823	823	Code of Alabama 1875, commencing at Section 8-20-1.
824	824	Section 15. Section 40-12-222, Code of Alabama 1975, is
825	825	amended to read as follows:
826	826	"§40-12-222
827	827	(a)(1) In addition to all other taxes now imposed by
828	828	law, there is hereby levied and shall be collected a privilege
829	829	or license tax on each person engaging or continuing within
830	830	this state in the business of leasing or renting tangible
831	831	personal property at the rate of four percent of the gross
832	832	proceeds derived by the lessor from the lease or rental of
833	833	tangible personal property.
834	834	(2) Thea. Except as provided in paragraph b., the
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864	864	privilege or license tax on each person engaging or continuing
865	865	within this state in the business of leasing or renting any
866	866	automotive vehicle or truck trailer, semitrailer, or house
867	867	trailer shall be at the rate of one and one-half percent of
868	868	the gross proceeds derived by the lessor from the lease or
869	869	rental of such automotive vehicle or truck trailer,
870	870	semitrailer, or house trailer.
871	871	b. For purposes of paragraph a. only, the business of
872	872	leasing or renting an automotive vehicle includes peer-to-peer
873	873	car sharing as defined in the Peer-to-Peer Car Sharing Program
874	874	Act. The gross proceeds collected by the Peer-to-Peer Car
875	875	Sharing Program as the leasing facilitator shall be subject to
876	876	the tax set forth in that paragraph if, and only if, the
877	877	applicable sales and use taxes were not paid either upon
878	878	purchase of the shared vehicle in the jurisdiction in which
879	879	the shared vehicle owner purchased the vehicle or at the time
880	880	of initial titling and registration in Alabama.
881	881	(3) The tax levied in this article shall not apply to
882	882	any leasing or rental, as lessor, by the state, or any
883	883	municipality or county in the state, or any public corporation
884	884	organized under the laws of the state, including, without
885	885	limiting the generality of the foregoing, any corporation
886	886	organized under the provisions of Sections 11-54-80 through
887	887	11-54-101.
888	888	(4) The privilege or license tax on each person or firm
889	889	engaging or continuing within this state in the business of
890	890	the leasing and rental of linens and garments shall be at the
891	891	rate of two percent of the gross proceeds derived by the
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921	921	lessor from the lease or rental of the linens and garments.
922	922	(b) Notwithstanding subsection (a), nothing shall
923	923	prohibit a lessor subject to a state or local privilege or
924	924	license tax from passing the amounts on to a lessee by adding
925	925	the taxes to the leasing price or otherwise; provided,
926	926	however, that all amounts passed on to the lessee shall be
927	927	includable in the gross proceeds derived from the lease of
928	928	tangible personal property which shall be subject to the
929	929	privilege or license tax owed by the lessor.
930	930	(c) The state and applicable local privilege or license
931	931	taxes applicable to a lease or rental transaction to which a
932	932	lessor is subject shall be determined as follows:
933	933	(1) Except for automotive vehicles as provided in
934	934	subdivision (2), the following shall apply:
935	935	a. When tangible personal property is delivered to the
936	936	lessee by the lessor or his or her agent, the privilege or
937	937	license tax levy shall be determined based on where the
938	938	property is delivered.
939	939	b. When tangible personal property is picked up at the
940	940	lessor's rental location by the lessee or his or her agent,
941	941	the privilege or license tax levy shall be determined based on
942	942	the rental location.
943	943	(2) For automotive vehicles required to be registered
944	944	pursuant to Section 32-6-61, each lease payment is considered
945	945	a separate lease transaction and occurs in the location as
946	946	provided below and the following rules shall apply:
947	947	a. The privilege or license tax levy on any
948	948	nonrecurring gross proceeds due at the inception of the lease
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978	978	to a new motor vehicle dealer or a used motor vehicle dealer
979	979	licensed pursuant to Section 40-12-391, including any
980	980	capitalized cost reduction or other fee that is retained by
981	981	the dealer in connection with its initiation of the lease,
982	982	shall be determined based on the location of the dealer where
983	983	the lease was initiated.
984	984	b. The privilege or license tax levy on gross proceeds
985	985	other than those described in paragraph a., including the
986	986	initial lease or rental payment and all subsequent lease or
987	987	rental payments, shall be determined based on the garage
988	988	address of the lessee as provided to the county licensing
989	989	official. The lessor is considered to be engaging or
990	990	continuing within this state in the business of leasing or
991	991	renting tangible personal property when its lessee has a
992	992	garage address within this state."
993	993	Section 16. This act shall become effective on the
994	994	first day of the third month following its passage and
995	995	approval by the Governor, or its otherwise becoming law.
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