HLS 12RS-1176 ENGROSSED
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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 in the parishes of Jefferson and Orleans; to provide for3
the boundaries, governance, and powers of the district; to authorize the levy of a tax4
on the lease or rental of certain automobiles under certain circumstances; to provide5
for the use of the avails of the tax; to provide for an effective date; and to provide for6
related 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
§551.1. Automobile rental tax district; parishes of Jefferson and Orleans13
A.(1) The governing authorities of the parishes of Jefferson and Orleans may14
each create, by ordinance, an automobile rental tax district, referred to in this Section15
as the "district". The district shall be a political subdivision of the state as defined16
in the Constitution of Louisiana.17
(2) The boundaries of the district shall be coterminous with the boundaries18
of the parish creating the district.19
(3) The parish governing authority creating the district shall be the governing20
authority of the district.21 HLS 12RS-1176 ENGROSSED
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B.(1)(a) The district is 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.5
(b) The tax shall be levied only after the question of its levy has been6
approved by a majority of the registered voters of the district who vote on the7
proposition authorizing the tax at an election held for that purpose in accordance8
with the Louisiana Election Code. The election on the question of the levy of the tax9
shall be held at the same time as a regularly scheduled election in the parish creating10
the district.11
(c) The tax shall not apply to any automobile rented by an insurance12
company as a replacement vehicle for a policyholder or by an automobile dealer as13
a replacement vehicle while a customer's vehicle is being serviced or repaired, nor14
shall the tax apply to any individual or business who rents a vehicle as a replacement15
vehicle while his vehicle is being repaired if the individual presents to the renter16
upon return of the rented vehicle a copy of the repair or service invoice.17
(2) For purposes of this Section "automobile rental contract" shall mean all18
agreements for the rental of an automobile without a driver designated to carry less19
than nine passengers for a period of not more than twenty-nine calendar days. Rental20
agreements for a period of more than twenty-nine calendar days shall not be subject21
to the tax, unless the actual period of the rental agreement is less than twenty-nine22
days as a result of the exercise of a cancellation clause.23
C.(1) The avails of the tax in Jefferson Parish shall be distributed as follows:24
(a) One-third of the tax shall be distributed to the city of Kenner for arts and25
recreation.26
(b) Two-thirds of the tax shall be distributed to the Jefferson Performing Arts27
Society for programs on the east and west bank and one-third of that amount shall28
be distributed to the Westwego Performing Arts Center.29 HLS 12RS-1176 ENGROSSED
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(2) The avails of the tax in Orleans Parish shall be used for road repairs and1
beautification projects.2
D. The parish governing authority creating the district shall prescribe in the3
ordinance creating the district any other purposes of the district. The parish that4
created the district and the district may enter into a cooperative endeavor agreement5
providing for cooperative efforts to exercise any authorized governmental function6
of the parish.7
Section 2. The provisions of this Act shall become effective June 30, 2012; if vetoed8
by the governor and subsequently approved by the legislature, this Act shall become9
effective on July 1, 2012, or on the day following such approval by the legislature,10
whichever is later.11
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 the governing authorities of the parishes of Jefferson and Orleans to
each create, by ordinance, an automobile rental tax district.
Present law (R.S. 47:551) levies, for the period from August 1, 1990, through June 30, 2012,
a state tax of 2 ½% and a local tax of ½ 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.
Present 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.
Present 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. Provides that 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. HLS 12RS-1176 ENGROSSED
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Present law provides that tax is payable to the secretary of the Dept. of Revenue. Requires
that the tax be collected and enforced pursuant to the provisions of present law (Chapter 2
of Subtitle II of Title 47 of the La. Revised Statutes of 1950) insofar as the provisions are
not in conflict with present law (R.S. 47:551).
Present law requires that the local tax be remitted to the secretary of the Dept. of Revenue
who collects the tax as an agent of local government. Authorizes the secretary to assess a
collection fee, not to exceed ½ of 1% of the proceeds of the tax, as reimbursement for the
actual cost of collection.
Present law requires the secretary to distribute monthly the proceeds of the tax to the central
local sales and use tax collector or, if none, the parish governing authority. Requires the
central local sales and use tax collector or governing authority to distribute at no charge the
tax proceeds received from the secretary to each political subdivision in the parish which
levies a sales and use tax. Provides that the distribution shall be in accordance with each
political subdivision's pro rata share of local sales and use tax receipts collected to the total
of all such taxes collected within the parish.
Present law provides that the local tax collected in Jefferson Parish shall be distributed as
follows:
(1)1/3 to the city of Kenner for arts and recreation.
(2)2/3 to the Jefferson Performing Arts Society for programs on the east and west bank
and one-third of that amount shall be distributed to the Westwego Performing Arts
Center.
Present law provides that the local tax collected in Orleans Parish shall be distributed for
road repairs and beautification projects.
Proposed law retains present law and additionally authorizes the governing authorities of the
parishes of Jefferson and Orleans to each create, by ordinance, an automobile rental tax
district as a political subdivision of the state. Provides that the boundaries of the district
shall be coterminous with the boundaries of the parish creating the district. Provides that the
parish governing authority creating the district shall be the governing authority of the
district.
Proposed law authorizes the district, subject to voter approval, to levy an automobile rental
tax, not to exceed ½ 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. Requires that the election on the question of the levy of the tax be held at the
same time as a regularly scheduled election in the parish creating the district.
Proposed law excludes the same transactions as present law (R.S. 47:551) from any tax that
may be imposed. Defines "automobile rental contract" to mean the same as defined in
present law (R.S. 47:551). Provides that 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 requires that the avails of the tax in the parishes of Jefferson and Orleans be
used in the same manner as provided in present law (R.S. 47:551)
Proposed law requires the parish governing authority creating the district to prescribe in the
ordinance creating the district any other purposes of the district.
Effective June 30, 2012.
(Adds R.S. 47:551.1) HLS 12RS-1176 ENGROSSED
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Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Municipal, Parochial and
Cultural Affairs to the original bill.
1. Relative to the creation of an automobile rental tax district, specifies that the
governing authority of Jefferson Parish is authorized to create a district by
ordinance. Specifies that a district is a political subdivision of the state.
2. Requires voter approval prior to the levy of a tax by a district and provides
relative to the time for holding a tax election.
3. Adds provisions authorizing the governing authority of Orleans Parish to create
a district by ordinance, providing for the boundaries of the district in Orleans,
and providing for the use of tax proceeds in Orleans Parish.