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Regular Session, 2012
HOUSE BILL NO. 934
BY REPRESENTATIVES LIGI, ADAMS, ARNOLD, BADON, BILLIOT, WESLEY
BISHOP, BROSSETT, CONNICK, LEGER, LEOPOLD, LOPINTO, LORUSSO,
TALBOT, AND WILLMOTT AND SENATORS ALARIO, APPEL, MARTINY,
AND MORRELL
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
ยง551.1. 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
B.(1)(a) The district is authorized to levy an automobile rental tax, not to22
exceed three percent of the gross proceeds derived from the lease or rental of an23 ENROLLEDHB NO. 934
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automobile pursuant to an automobile rental contract, less any sales and use tax1
included in such contract. The tax shall be in addition to any tax, fee, or license2
imposed directly or indirectly.3
(b) The tax shall be levied only after the question of its levy has been4
approved by a majority of the registered voters of the district who vote on the5
proposition authorizing the tax at an election held for that purpose in accordance6
with the Louisiana Election Code. The election on the question of the levy of the tax7
shall be held at the same time as a regularly scheduled election in the parish creating8
the district.9
(c) The tax shall not apply to any automobile rented by an insurance10
company as a replacement vehicle for a policyholder or by an automobile dealer as11
a replacement vehicle while a customer's vehicle is being serviced or repaired, nor12
shall the tax apply to any individual or business who rents a vehicle as a replacement13
vehicle while his vehicle is being repaired if the individual presents to the renter14
upon return of the rented vehicle a copy of the repair or service invoice.15
(2) For purposes of this Section "automobile rental contract" shall mean all16
agreements for the rental of an automobile without a driver designated to carry less17
than nine passengers for a period of not more than twenty-nine calendar days. Rental18
agreements for a period of more than twenty-nine calendar days shall not be subject19
to the tax, unless the actual period of the rental agreement is less than twenty-nine20
days as a result of the exercise of a cancellation clause.21
C.(1) The avails of the total taxes collected in Jefferson Parish shall be22
distributed as follows:23
(a) One-third of the total taxes shall be distributed to the city of Kenner for24
arts and recreation.25
(b) Two-thirds of the total taxes collected shall be disbursed as follows:26
(i) Four-twelfths to the Westwego Performing Arts Center.27
(ii) Three-twelfths to the Jefferson Performing Arts Society for programs on28
the east and west bank.29
(iii) Two-twelfths to the Gretna Cultural Center for the Arts.30 ENROLLEDHB NO. 934
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(iv) All remaining monies shall be deposited into a dedicated funding1
account to be used exclusively for the operation, administration, and maintenance of2
cultural facilities in unincorporated areas of Jefferson Parish.3
(2) The avails of the tax in Orleans Parish shall be used for road repairs and4
beautification projects.5
D. The parish governing authority creating the district shall prescribe in the6
ordinance creating the district any other purposes of the district. The parish that7
created the district and the district may enter into a cooperative endeavor agreement8
providing for cooperative efforts to exercise any authorized governmental function9
of the parish.10
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor11
and subsequently approved by the legislature, this Act shall become effective on July 1,12
2012, or on the day following such approval by the legislature, whichever is later.13
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: