HLS 12RS-1347 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 961
BY REPRESENTATIVES BARROW, BILLIOT, LIGI, LOPINTO, TALBOT, AND
WILLMOTT AND SENATORS ALARIO, APPEL, AND MARTINY
TAX/LEASE: Authorizes parishes 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; to provide for the boundaries, governance, and powers3
of the district; to authorize the levy of a tax on the lease or rental of certain4
automobiles under certain circumstances; to provide for an effective date; and to5
provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:551.1 is hereby enacted to read as follows: 8
ยง551.1. Automobile rental tax district9
Each parish is hereby authorized to create an automobile rental tax district10
as follows:11
(1) The boundaries of any such district shall be coterminous with the parish.12
(2) The governing authority of the district shall be the parish governing13
authority.14
(3)(a) The district may be authorized to levy an automobile rental tax, not15
to exceed one-half of one percent of the gross proceeds derived from the lease or16
rental of an automobile pursuant to an automobile rental contract, less any sales and17
use tax included in such contract. The tax shall be in addition to any tax, fee, or18
license imposed directly or indirectly. The tax shall not apply to any automobile19
rented by an insurance company as a replacement vehicle for a policyholder or by20 HLS 12RS-1347 ORIGINAL
HB NO. 961
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an automobile dealer as a replacement vehicle while a customer's vehicle is being1
serviced or repaired, nor shall the tax apply to any individual or business who rents2
a vehicle as a replacement vehicle while his vehicle is being repaired if the3
individual presents to the renter upon return of the rented vehicle a copy of the repair4
or service invoice.5
(b) For purposes of this Section, "automobile rental contract" means all6
agreements for the rental of an automobile without a driver designated to carry less7
than nine passengers for a period of not more than twenty-nine calendar days. Rental8
agreements for a period of more than twenty-nine calendar days shall not be subject9
to the tax, unless the actual period of the rental agreement is less than twenty-nine10
days as a result of the exercise of a cancellation clause.11
(4) The parish shall prescribe in the ordinance creating the district any other12
purposes of the district and any dedicated uses of the proceeds of the revenues13
collected. The parish and the district may enter into a cooperative endeavor14
agreement providing for cooperative efforts to exercise any authorized governmental15
function of the parish.16
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor17
and subsequently approved by the legislature, this Act shall become effective on July 1,18
2012, or on the day following such approval by the legislature, whichever is later.19
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)]
Barrow HB No. 961
Abstract: Authorizes parishes to create automobile rental tax districts.
Proposed law authorizes parishes to create automobile rental tax districts 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 HLS 12RS-1347 ORIGINAL
HB NO. 961
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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.
Effective June 30, 2012.
(Adds R.S. 47:551.1)