ENROLLED Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (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: