HLS 12RS-1186 ORIGINAL
Page 1 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 971
BY REPRESENTATIVE BARROW
TAX/LEASE: Authorizes East Baton Rouge 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 East Baton Rouge parish; to provide for the3
boundaries, governance, and powers of the district; to authorize the levy of a tax on4
the lease or rental of certain automobiles under certain circumstances; to provide for5
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; East Baton Rouge parish13
A. East Baton Rouge parish is hereby authorized to create an automobile14
rental tax 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-1186 ORIGINAL
HB NO. 971
Page 2 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B.(1) The district may be authorized to levy an automobile rental tax, not to1
exceed three percent of the gross proceeds derived from the lease or rental of an2
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 East Baton Rouge parish shall be distributed as18
follows:19
(1) Thirty percent to the Arts Council of Greater Baton Rouge for its20
operations.21
(2) Thirty percent to the Arts Council of Greater Baton Rouge for grants.22
(3) Twenty-three percent to the Shaw Center for the Arts.23
(4) Seventeen percent to the general fund of the Parish of East Baton Rouge,24
City of Baton Rouge.25
D. The parish shall prescribe in the ordinance creating the district any other26
purposes of the district. The parish and the district may enter into a cooperative27
endeavor agreement providing for cooperative efforts to exercise any authorized28
governmental function of the parish.29 HLS 12RS-1186 ORIGINAL
HB NO. 971
Page 3 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Section 2. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
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. 971
Abstract: Authorizes East Baton Rouge parish to create an automobile rental tax district.
Proposed law authorizes the creation of an automobile rental tax district in East Baton Rouge
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 3% 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 East Baton Rouge parish be used
as follows:
(1)30% to the Arts Council of Greater Baton Rouge for its operations. HLS 12RS-1186 ORIGINAL
HB NO. 971
Page 4 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2)30% to the Arts Council of Greater Baton Rouge for grants.
(3)23% to the Shaw Center for the Arts.
(4)17% to the general fund of the Parish of East Baton Rouge, City of Baton Rouge.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:551.1)