Alabama 2023 Regular Session

Alabama Senate Bill SB232 Compare Versions

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

Old	New	Differences
1	1	SB232INTRODUCED
2	2	Page 0
3	3	LHK2AA-1
4	4	By Senator Elliott
5	5	RFD: Finance and Taxation General Fund
6	6	First Read: 20-Apr-23
7	7	1
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11	11	5 LHK2AA-1 04/18/2023 SLU (L) bm2022-1601
12	12	Page 1
13	13	SYNOPSIS:
14	14	This bill would authorize peer-to-peer car
15	15	sharing programs, which are business platforms that
16	16	connect vehicle owners with drivers, to enable the
17	17	sharing of vehicles for financial consideration in this
18	18	state.
19	19	This bill would provide requirements for the
20	20	operation of a peer-to-peer car sharing program,
21	21	including insurance requirements, notification
22	22	requirements, record keeping and reporting
23	23	requirements, liability requirements, consumer
24	24	protection disclosure requirements, and safety recall
25	25	requirements.
26	26	This bill would also provide that lessors of
27	27	vehicles used in peer-to-peer car sharing in the state
28	28	who have paid taxes due upon purchase of the vehicle in
29	29	the jurisdiction where it was purchased shall not be
30	30	subject to privilege or license taxes on gross proceeds
31	31	of vehicle rental or leasing.
32	32	A BILL
33	33	TO BE ENTITLED
34	34	AN ACT
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64	64	Relating to motor vehicles; establishing the
65	65	Peer-to-Peer Car Sharing Program Act; to provide for the
66	66	operation of peer-to-peer car sharing programs in the state;
67	67	and to amend Section 40-12-222, Code of Alabama 1975, to
68	68	exclude lessors of peer-to-peer car sharing vehicles from
69	69	liability for certain taxes on the proceeds of vehicle rental
70	70	and leasing.
71	71	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
72	72	Section 1. This section shall be known and may be cited
73	73	as the Peer-to-Peer Car Sharing Program Act.
74	74	Section 2. As used in this section, the following words
75	75	have the following meanings:
76	76	(1) CAR SHARING DELIVERY PERIOD or DELIVERY PERIOD. The
77	77	period of time during which a shared vehicle is being
78	78	delivered to the location of the car sharing start time, if
79	79	applicable, as documented by the governing car sharing program
80	80	agreement.
81	81	(2) CAR SHARING PERIOD or SHARING PERIOD. The period of
82	82	time that commences with the car sharing delivery period or,
83	83	if there is no car sharing delivery period, that commences
84	84	with the car sharing start time and, in either case, ends at
85	85	the car sharing termination time.
86	86	(3) CAR SHARING START TIME or START TIME. The time when
87	87	the shared vehicle becomes subject to the control of the
88	88	shared vehicle driver, at or after the time the reservation of
89	89	a shared vehicle is scheduled to begin, as documented in the
90	90	records of a peer-to-peer car sharing program.
91	91	(4) CAR SHARING TERMINATION TIME or TERMINATION TIME.
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121	121	The earliest of the following events:
122	122	a. The expiration of the agreed-upon period of time
123	123	established for the use of a shared vehicle according to the
124	124	terms of the car sharing program agreement, if the shared
125	125	vehicle is delivered to the agreed upon location in the car
126	126	sharing program agreement.
127	127	b. When the shared vehicle is returned to a location as
128	128	alternatively agreed upon by the shared vehicle owner and the
129	129	shared vehicle driver as communicated through a peer-to-peer
130	130	car sharing program, which alternatively agreed upon location
131	131	shall be incorporated into the car sharing program agreement.
132	132	c. When the shared vehicle owner, or the shared vehicle
133	133	owner's authorized designee, takes possession and control of
134	134	the shared vehicle.
135	135	(5) PEER-TO-PEER CAR SHARING or SHARING. The authorized
136	136	use of a vehicle by an individual other than the vehicle's
137	137	owner through a peer-to-peer car sharing program. The term
138	138	does not include a rental or leasing transaction of tangible
139	139	personal property which is subject to Article 4 of Chapter 12
140	140	of Title 40, Code of Alabama 1975, except as provided by
141	141	Section 40-12-222(a)(2), Code of Alabama 1975.
142	142	(6) PEER-TO-PEER CAR SHARING PROGRAM. A business
143	143	platform that connects vehicle owners with drivers to enable
144	144	the sharing of vehicles for financial consideration. The term
145	145	does not include any of the following:
146	146	a. A person engaging or continuing within this state in
147	147	the business of leasing or renting any automotive vehicle or
148	148	truck trailer, semitrailer, or house trailer which is subject
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178	178	to Article 4 of Chapter 12 of Title 40, Code of Alabama 1975.
179	179	b. A person facilitating a rental transaction of
180	180	tangible personal property which is subject to Article 4 of
181	181	Chapter 12 of Title 40, Code of Alabama 1975.
182	182	c. A motor vehicle rental company licensed pursuant to
183	183	Section 27-7-5.1, Code of Alabama 1975.
184	184	d. A person facilitating rental transactions as used in
185	185	Section 40-2-11(7)(c), Code of Alabama 1975.
186	186	(7) PEER-TO-PEER CAR SHARING PROGRAM AGREEMENT or
187	187	AGREEMENT. The terms and conditions applicable to a shared
188	188	vehicle owner and a shared vehicle driver that govern the use
189	189	of a shared vehicle through a peer-to-peer car sharing
190	190	program. The term does not include any of the following;
191	191	a. A car rental service provider solely providing
192	192	hardware or software as a service to a person or entity that
193	193	is not effectuating payment of financial consideration for the
194	194	use of a shared vehicle.
195	195	b. A motor vehicle rental agreement governed by Section
196	196	32-15-6, Code of Alabama 1975.
197	197	c. Hiring, leasing, or renting a motor vehicle under a
198	198	rental agreement governed by Section 32-15-6, Code of Alabama
199	199	1975.
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
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235	235	truck trailer, semitrailer, or house trailer that is subject
236	236	to Article 4 of Chapter 12 of Title 40, Code of Alabama 1975,
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
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292	292	32, Code of Alabama 1975.
293	293	(b) Notwithstanding the definition of "car sharing
294	294	termination time," the assumption of liability under
295	295	subsection (a) does not apply to any shared vehicle owner
296	296	under either 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	(c) Notwithstanding the definition of "car sharing
305	305	termination time," the assumption of liability under
306	306	subsection (a) would apply to bodily injury, property damage,
307	307	uninsured and underinsured motorist, or personal injury
308	308	protection losses by damaged third parties required under
309	309	Chapter 7 of Title 32, Code of Alabama 1975.
310	310	(d) A peer-to-peer car sharing program shall ensure
311	311	that, during each car sharing period, the shared vehicle owner
312	312	and the shared vehicle driver are insured under a motor
313	313	vehicle liability insurance policy that does all of the
314	314	following:
315	315	(1) Provides insurance coverage in amounts no less than
316	316	the minimum amounts required for proof of financial
317	317	responsibility under Section 32-7-2, Code of Alabama 1975.
318	318	(2) Does either of the following:
319	319	a. Recognizes that the shared vehicle insured under the
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349	349	policy is made available and used through a peer-to-peer car
350	350	sharing program.
351	351	b. Does not exclude the use of a shared vehicle by a
352	352	shared vehicle driver.
353	353	(e) The insurance required under subsection (d) may be
354	354	purchased by any of the following:
355	355	(1) A shared vehicle owner.
356	356	(2) A shared vehicle driver.
357	357	(3) A peer-to-peer car sharing program.
358	358	(4) Any combination of a shared vehicle owner, a shared
359	359	vehicle driver, and a peer-to-peer car sharing program.
360	360	(f) The insurance required in subsection (e), that is
361	361	satisfying the requirement of subsection (d), shall be primary
362	362	during each car sharing period, and in the event that a claim
363	363	occurs in another state with minimum financial responsibility
364	364	limits higher than those set forth in Section 32-7-2, Code of
365	365	Alabama 1975, during the car sharing period, the coverage
366	366	maintained under subsection (e) shall satisfy the difference
367	367	in minimum coverage amounts, up to the applicable policy
368	368	limits.
369	369	(g) The insurer, insurers, or peer-to-peer car sharing
370	370	program providing coverage under subsection (d) or (e) shall
371	371	assume primary liability for a claim when either of the
372	372	following occurs:
373	373	(1) A dispute exists as to who was in control of the
374	374	shared motor vehicle at the time of the loss, and the
375	375	peer-to-peer car sharing program does not have available, did
376	376	not retain, or fails to provide the information required by
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406	406	Section 6.
407	407	(2) A dispute exists as to whether the shared vehicle
408	408	was returned to the alternatively agreed upon location, as
409	409	required under Section 2(4)(b).
410	410	(h) If insurance maintained by a shared vehicle owner
411	411	or shared vehicle driver in accordance with subsection (e) has
412	412	lapsed or does not provide the required coverage, insurance
413	413	maintained by a peer-to-peer car sharing program shall provide
414	414	the coverage required by subsection (d) beginning with the
415	415	first dollar of a claim and shall have the duty to defend such
416	416	claim except under circumstances as set forth in subsection
417	417	(b).
418	418	(i) Coverage under an automobile insurance policy
419	419	maintained by the peer-to-peer car sharing program may not be
420	420	dependent on another automobile insurer first denying a claim,
421	421	and may not require another automobile insurance policy to
422	422	first deny a claim.
423	423	(j) Nothing in this section does any of the following:
424	424	(1) Limits the ability of a peer-to-peer car sharing
425	425	program for any act or omission of the peer-to-peer car
426	426	sharing program itself that results in injury to any person as
427	427	a result of the use of a shared vehicle through a peer-to-peer
428	428	car sharing program.
429	429	(2) Limits the ability of the peer-to-peer car sharing
430	430	program to seek indemnification, by contract, from the shared
431	431	vehicle owner or the shared vehicle driver for economic loss
432	432	sustained by the peer-to-peer car sharing program resulting
433	433	from a breach of the terms and conditions of the car sharing
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463	463	program agreement.
464	464	Section 4. When a vehicle owner registers as a shared
465	465	vehicle owner on a peer-to-peer car sharing program, and
466	466	before the shared vehicle owner makes a shared vehicle
467	467	available for car sharing on the peer-to-peer car sharing
468	468	program, the peer-to-peer car sharing program shall notify the
469	469	shared vehicle owner that, if the shared vehicle has a lien
470	470	against it, the use of the shared vehicle through a
471	471	peer-to-peer car sharing program, including use without
472	472	physical damage coverage, may violate the terms of the
473	473	contract with the lien holder.
474	474	Section 5. (a) An authorized insurer that writes motor
475	475	vehicle liability insurance in this state may exclude any and
476	476	all coverage and the duty to defend or indemnify for any claim
477	477	afforded under a shared vehicle owner's motor vehicle
478	478	liability insurance policy, including, but not limited to, all
479	479	of the following:
480	480	(1) Liability coverage for bodily injury and property
481	481	damage.
482	482	(2) Personal injury protection coverage.
483	483	(3) Uninsured and underinsured motorist coverage.
484	484	(4) Medical payments coverage.
485	485	(5) Comprehensive physical damage coverage.
486	486	(6) Collision physical damage coverage.
487	487	(b) Nothing in this act invalidates or limits an
488	488	exclusion contained in a motor vehicle liability insurance
489	489	policy, including any insurance policy in use or approved for
490	490	use that excludes coverage for motor vehicles made available
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520	520	for rent, sharing, hire, or for any business use.
521	521	(c) Nothing in this act invalidates, limits, or
522	522	restricts an insurer's ability under existing law to
523	523	underwrite any insurance policy. Nothing in this act
524	524	invalidates, limits, or restricts an insurer's ability under
525	525	existing law to cancel and nonrenew policies.
526	526	Section 6. (a) A peer-to-peer car sharing program
527	527	shall collect and verify records pertaining to the use of all
528	528	vehicles used in a peer-to-peer car sharing program,
529	529	including, but not limited to, all of the following:
530	530	(1) The number of times the vehicle is used.
531	531	(2) Car sharing period pick up and drop off locations.
532	532	(3) Fees paid by the shared vehicle driver.
533	533	(4) Revenues received by the shared vehicle owner.
534	534	(b) To facilitate a claim coverage investigation,
535	535	settlement, negotiation, and litigation, the peer-to-peer car
536	536	sharing program, upon request, shall provide the records
537	537	collected under subsection (a) to the shared vehicle owner,
538	538	the shared vehicle owner's insurer, or the shared vehicle
539	539	driver's insurer.
540	540	(c) The peer-to-peer car sharing program shall retain
541	541	the records for a time period not less than the applicable
542	542	personal injury statute of limitations.
543	543	Section 7. A peer-to-peer car sharing program and a
544	544	shared vehicle owner shall not be liable, vicariously or
545	545	otherwise, by reason of making a shared vehicle available for
546	546	use through the peer-to-peer car sharing program or by being
547	547	the owner of a shared vehicle, for harm to persons or property
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577	577	that occurs during the car sharing period.
578	578	Section 8. A motor vehicle insurer that defends or
579	579	indemnifies a claim against a shared vehicle that is excluded
580	580	under the terms of its policy shall have the right to seek
581	581	contribution from the motor vehicle insurer of the
582	582	peer-to-peer car sharing program if the claim is both of the
583	583	following:
584	584	(1) Made against the shared vehicle owner or the shared
585	585	vehicle driver for loss or injury that occurs during the car
586	586	sharing period.
587	587	(2) Excluded under the terms of its policy.
588	588	Section 9. (a) Notwithstanding any law to the
589	589	contrary, a peer-to-peer car sharing program shall have an
590	590	insurable interest in a shared vehicle during the car sharing
591	591	period.
592	592	(b) Nothing in this section shall create liability on a
593	593	peer-to-peer car sharing program to maintain the coverage
594	594	mandated by Section 3.
595	595	(c) A peer-to-peer car sharing program may own and
596	596	maintain as the named insured one or more policies of motor
597	597	vehicle liability insurance that provide coverage for any of
598	598	the following:
599	599	(1) Liabilities assumed by the peer-to-peer car sharing
600	600	program under a peer-to-peer car sharing program agreement.
601	601	(2) Any liability of the shared vehicle owner.
602	602	(3) Damage or loss to the shared motor vehicle.
603	603	(4) Any liability of the shared vehicle driver.
604	604	Section 10. Each car sharing program agreement made in
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634	634	this state shall disclose to the shared vehicle owner and the
635	635	shared vehicle driver all of the following:
636	636	(1) Any right of the peer-to-peer car sharing program
637	637	to seek indemnification from the shared vehicle owner or the
638	638	shared vehicle driver for economic loss sustained by the
639	639	peer-to-peer car sharing program resulting from a breach of
640	640	the terms and conditions of the car sharing program agreement.
641	641	(2) That a motor vehicle liability insurance policy
642	642	issued to the shared vehicle owner for the shared vehicle, or
643	643	to the shared vehicle driver, does not provide a defense or
644	644	indemnification for any claim asserted by the peer-to-peer car
645	645	sharing program.
646	646	(3) That the peer-to-peer car sharing program's
647	647	insurance coverage on the shared vehicle owner and the shared
648	648	vehicle driver is in effect only during each car sharing
649	649	period and that, for any use of the shared vehicle by the
650	650	shared vehicle driver after the car sharing termination time,
651	651	the shared vehicle driver and the shared vehicle owner may not
652	652	have insurance coverage.
653	653	(4) The daily rate, fees, and, if applicable, any
654	654	insurance or protection package costs that are charged to the
655	655	shared vehicle owner or the shared vehicle driver.
656	656	(5) That the shared vehicle owner's motor vehicle
657	657	liability insurance may not provide coverage for a shared
658	658	vehicle.
659	659	(6) An emergency telephone number to personnel capable
660	660	of fielding roadside assistance and other customer service
661	661	inquiries.
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691	691	(7) Whether there are conditions under which a shared
692	692	vehicle driver must maintain a personal automobile insurance
693	693	policy with certain applicable coverage limits on a primary
694	694	basis in order to book a shared motor vehicle.
695	695	Section 11. (a) A peer-to-peer car sharing program may
696	696	not enter into a peer-to-peer car sharing program agreement
697	697	with an individual who will operate the shared vehicle unless
698	698	he or she meets any of the following requirements:
699	699	(1) Holds a driver license issued under Section 32-6-1,
700	700	Code of Alabama 1975, that authorizes him or her to operate
701	701	vehicles of the class of the shared vehicle.
702	702	(2) Is a nonresident who meets both of the following
703	703	requirements:
704	704	a. Has a driver license issued by the state or country
705	705	of his or her residence which authorizes him or her to drive
706	706	vehicles of the class of the shared vehicle.
707	707	b. Is 16 years of age or older.
708	708	(3) Is specifically authorized by Section 32-6-2, Code
709	709	of Alabama 1975, to drive vehicles of the class of the shared
710	710	vehicle.
711	711	(b) A peer-to-peer car sharing program shall keep a
712	712	record of all of the following:
713	713	(1) The name and address of the shared vehicle driver.
714	714	(2) The driver license of the shared vehicle driver and
715	715	each other person, if any, who will operate the shared
716	716	vehicle.
717	717	(3) The place of issuance of the driver license.
718	718	Section 12. (a) A peer-to-peer car sharing program
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748	748	shall have sole responsibility for any equipment, including a
749	749	Global Positioning System or other special equipment, that is
750	750	placed in or on the vehicle to monitor or facilitate the car
751	751	sharing transaction.
752	752	(b) A peer-to-peer car sharing program shall indemnify
753	753	and hold harmless the shared vehicle owner for any damage to
754	754	or theft of such equipment during the sharing period not
755	755	caused by the vehicle owner.
756	756	(c) A peer-to-peer car sharing program may seek
757	757	indemnity from the shared vehicle driver for any loss or
758	758	damage to such equipment that occurs during the sharing
759	759	period.
760	760	Section 13. (a) When a vehicle owner registers as a
761	761	shared vehicle owner on a peer-to-peer car sharing program,
762	762	and before a shared vehicle owner makes a shared vehicle
763	763	available for car sharing on the peer-to-peer car sharing
764	764	program, the peer-to-peer car sharing program shall do both of
765	765	the following:
766	766	(1) Verify that the shared vehicle does not have any
767	767	safety recalls on the vehicle for which the repairs have not
768	768	been made.
769	769	(2) Notify the shared vehicle owner of the requirements
770	770	under subsection (b).
771	771	(b)(1) If a shared vehicle owner has received an actual
772	772	notice of a safety recall on the vehicle, the shared vehicle
773	773	owner may not make a vehicle available as a shared vehicle on
774	774	a peer-to-peer car sharing program until the safety recall
775	775	repair has been made.
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805	805	(2) If a shared vehicle owner receives an actual notice
806	806	of a safety recall on a shared vehicle while the shared
807	807	vehicle is made available on the peer-to-peer car sharing
808	808	program, the shared vehicle owner shall change the status of
809	809	the vehicle to unavailable as soon as practicably possible.
810	810	The shared vehicle may not be listed as available until the
811	811	safety recall repair has been made.
812	812	(3) If a shared vehicle owner receives an actual notice
813	813	of a safety recall on a shared vehicle while the shared
814	814	vehicle is in the possession of a shared vehicle driver and
815	815	engaged in peer-to-peer car sharing during a sharing period,
816	816	the shared vehicle owner shall notify the peer-to-peer car
817	817	sharing program about the safety recall as soon as practicably
818	818	possible after receiving the notice of the safety recall. The
819	819	shared vehicle may not be listed as available until the safety
820	820	recall repair has been made.
821	821	Section 14. Section 40-12-222, Code of Alabama 1975, is
822	822	amended to read as follows:
823	823	"§40-12-222
824	824	(a)(1) In addition to all other taxes now imposed by
825	825	law, there is hereby levied and shall be collected a privilege
826	826	or license tax on each person engaging or continuing within
827	827	this state in the business of leasing or renting tangible
828	828	personal property at the rate of four percent of the gross
829	829	proceeds derived by the lessor from the lease or rental of
830	830	tangible personal property.
831	831	(2) Thea. Except as provided in paragraph b., the
832	832	privilege or license tax on each person engaging or continuing
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862	862	within this state in the business of leasing or renting any
863	863	automotive vehicle or truck trailer, semitrailer, or house
864	864	trailer shall be at the rate of one and one-half percent of
865	865	the gross proceeds derived by the lessor from the lease or
866	866	rental of such automotive vehicle or truck trailer,
867	867	semitrailer, or house trailer.
868	868	b. For purposes of paragraph a. only, the business of
869	869	leasing or renting an automotive vehicle includes peer-to-peer
870	870	car sharing as defined in the Peer-to-Peer Car Sharing Program
871	871	Act. Any gross proceeds derived by the lessor from
872	872	peer-to-peer car sharing shall be subject to the tax set forth
873	873	in that paragraph if, and only if, the applicable sales and
874	874	use taxes were not paid upon purchase of the shared vehicle in
875	875	the jurisdiction in which the shared vehicle owner purchased
876	876	the vehicle.
877	877	(3) The tax levied in this article shall not apply to
878	878	any leasing or rental, as lessor, by the state, or any
879	879	municipality or county in the state, or any public corporation
880	880	organized under the laws of the state, including, without
881	881	limiting the generality of the foregoing, any corporation
882	882	organized under the provisions of Sections 11-54-80 through
883	883	11-54-101.
884	884	(4) The privilege or license tax on each person or firm
885	885	engaging or continuing within this state in the business of
886	886	the leasing and rental of linens and garments shall be at the
887	887	rate of two percent of the gross proceeds derived by the
888	888	lessor from the lease or rental of the linens and garments.
889	889	(b) Notwithstanding subsection (a), nothing shall
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919	919	prohibit a lessor subject to a state or local privilege or
920	920	license tax from passing the amounts on to a lessee by adding
921	921	the taxes to the leasing price or otherwise; provided,
922	922	however, that all amounts passed on to the lessee shall be
923	923	includable in the gross proceeds derived from the lease of
924	924	tangible personal property which shall be subject to the
925	925	privilege or license tax owed by the lessor.
926	926	(c) The state and applicable local privilege or license
927	927	taxes applicable to a lease or rental transaction to which a
928	928	lessor is subject shall be determined as follows:
929	929	(1) Except for automotive vehicles as provided in
930	930	subdivision (2), the following shall apply:
931	931	a. When tangible personal property is delivered to the
932	932	lessee by the lessor or his or her agent, the privilege or
933	933	license tax levy shall be determined based on where the
934	934	property is delivered.
935	935	b. When tangible personal property is picked up at the
936	936	lessor's rental location by the lessee or his or her agent,
937	937	the privilege or license tax levy shall be determined based on
938	938	the rental location.
939	939	(2) For automotive vehicles required to be registered
940	940	pursuant to Section 32-6-61, each lease payment is considered
941	941	a separate lease transaction and occurs in the location as
942	942	provided below and the following rules shall apply:
943	943	a. The privilege or license tax levy on any
944	944	nonrecurring gross proceeds due at the inception of the lease
945	945	to a new motor vehicle dealer or a used motor vehicle dealer
946	946	licensed pursuant to Section 40-12-391, including any
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976	976	capitalized cost reduction or other fee that is retained by
977	977	the dealer in connection with its initiation of the lease,
978	978	shall be determined based on the location of the dealer where
979	979	the lease was initiated.
980	980	b. The privilege or license tax levy on gross proceeds
981	981	other than those described in paragraph a., including the
982	982	initial lease or rental payment and all subsequent lease or
983	983	rental payments, shall be determined based on the garage
984	984	address of the lessee as provided to the county licensing
985	985	official. The lessor is considered to be engaging or
986	986	continuing within this state in the business of leasing or
987	987	renting tangible personal property when its lessee has a
988	988	garage address within this state."
989	989	Section 15. This act shall become effective on the
990	990	first day of the third month following its passage and
991	991	approval by the Governor, or its otherwise becoming law.
992	992	477
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