HLS 12RS-1176 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 934
BY REPRESENTATIVES LIGI, LOPINTO, TALBOT, AND WILLMOTT AND
SENATORS ALARIO, APPEL, AND MARTINY
TAX/LEASE: Authorizes Jefferson Parish to create an automobile rental tax district
AN ACT1
To enact R.S. 47:551.1, relative to special districts; to authorize the establishment of an2
automobile rental tax district by Jefferson parish; to provide for the boundaries,3
governance, and powers of the district; to authorize the levy of a tax on the lease or4
rental of certain automobiles under certain circumstances; to provide for the use of5
the avails of the tax; to provide for an effective date; and to provide for related6
matters.7
Notice of intention to introduce this Act has been published8
as provided by Article III, Section 13 of the Constitution of9
Louisiana.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 47:551.1 is hereby enacted to read as follows: 12
ยง551.1. Automobile rental tax district; Jefferson parish13
A. Jefferson parish is hereby authorized to create an automobile rental tax14
district as follows:15
(1) The boundaries of the district shall be coterminous with the boundaries16
of the parish.17
(2) The governing authority of the district shall be the parish governing18
authority.19 HLS 12RS-1176 ORIGINAL
HB NO. 934
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B.(1) The district may be authorized to levy an automobile rental tax, not to1
exceed one half of one percent of the gross proceeds derived from the lease or rental2
of an automobile pursuant to an automobile rental contract, less any sales and use tax3
included in such contract. The tax shall be in addition to any tax, fee, or license4
imposed directly or indirectly. The tax shall not apply to any automobile rented by5
an insurance company as a replacement vehicle for a policyholder or by an6
automobile dealer as a replacement vehicle while a customer's vehicle is being7
serviced or repaired, nor shall the tax apply to any individual or business who rents8
a vehicle as a replacement vehicle while his vehicle is being repaired if the9
individual presents to the renter upon return of the rented vehicle a copy of the repair10
or service invoice.11
(2) For purposes of this Section "automobile rental contract" shall mean all12
agreements for the rental of an automobile without a driver designated to carry less13
than nine passengers for a period of not more than twenty-nine calendar days. Rental14
agreements for a period of more than twenty-nine calendar days shall not be subject15
to the tax, unless the actual period of the rental agreement is less than twenty-nine16
days as a result of the exercise of a cancellation clause.17
C. The avails of the tax in Jefferson Parish shall be distributed as follows:18
(a) One-third of the tax shall be distributed to the city of Kenner for arts and19
recreation.20
(b) Two-thirds of the tax shall be distributed to the Jefferson Performing Arts21
Society for programs on the east and west bank and one-third of that amount shall22
be distributed to the Westwego Performing Arts Center.23
D. The parish shall prescribe in the ordinance creating the district any other24
purposes of the district. The parish and the district may enter into a cooperative25
endeavor agreement providing for cooperative efforts to exercise any authorized26
governmental function of the parish.27
Section 2. The provisions of this Act shall become effective June 30, 2012; if vetoed28
by the governor and subsequently approved by the legislature, this Act shall become29 HLS 12RS-1176 ORIGINAL
HB NO. 934
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effective on July 1, 2012, or on the day following such approval by the legislature,1
whichever is later.2
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ligi HB No. 934
Abstract: Authorizes Jefferson Parish to create an automobile rental tax district.
Proposed law authorizes the creation of an automobile rental tax district in Jefferson Parish
as follows:
(1)The boundaries of the district shall be coterminous with the boundaries of the parish.
(2)The governing authority of the district shall be the parish governing authority.
Proposed law provides that the district may be authorized to levy an automobile rental tax,
not to exceed 1/2 of 1% of the gross proceeds derived from the lease or rental of an
automobile pursuant to an automobile rental contract, less any sales and use tax included in
such contract.
Proposed law excludes the following transactions from any tax that may be imposed:
(1)Automobiles rented by an insurance company as a replacement vehicle for a
policyholder.
(2)Automobiles rented by an automobile dealer as a replacement vehicle while a
customer's vehicle is being repaired.
(3)An automobile rental by an individual or business who rents a vehicle as a
replacement vehicle while his vehicle is being repaired if the individual presents to
the renter upon return of the rented vehicle a copy of the repair or service invoice.
Proposed law defines "automobile rental contract" to mean an agreement for the rental of an
automobile without a driver, designated to carry less than nine passengers, for a rental period
of not more than 29 calendar days. Rental agreements in excess of 29 days shall not be
subject to the tax, unless the actual period of the rental agreement is less than 29 days as a
result of the exercise of a cancellation clause.
Proposed law authorizes the parish to prescribe in the ordinance creating the district any
other purposes of the district.
Proposed law requires that the avails of any tax imposed by Jefferson Parish be used as
follows:
(1)1/3 of the tax shall be distributed to the city of Kenner for arts and recreation.
(2)2/3 of the tax shall be distributed to the Jefferson Performing Arts Society for
programs on the east and west bank and 1/3 of that amount shall be distributed to the
Westwego Performing Arts Center. HLS 12RS-1176 ORIGINAL
HB NO. 934
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Effective June 30, 2012.
(Adds R.S. 47:551.1)