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Regular Session, 2012
HOUSE BILL NO. 971
BY REPRESENTATIVE BARROW
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 East Baton Rouge, Ouachita, and3
Rapides; to provide for the boundaries, governance, and powers of the district; to4
authorize the levy of a tax on the lease or rental of certain automobiles under certain5
circumstances; to provide for the use of the avails of the tax; to provide for an6
effective date; and to provide for 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 East Baton Rouge, Ouachita, and13
Rapides14
A.(1) The governing authority of the parishes of East Baton Rouge,15
Ouachita, and Rapides may each create, by ordinance, an automobile rental tax16
district, referred to in this Section as the "district". The district shall be a political17
subdivision of the state as defined in the Constitution of Louisiana.18
(2) The boundaries of the district shall be coterminous with the boundaries19
of the parish creating the district.20
(3) The parish governing authority shall be the governing authority of the21
district.22
B.(1)(a) The district is authorized to levy an automobile rental tax, not to23
exceed three percent of the gross proceeds derived from the lease or rental of an24 ENROLLEDHB NO. 971
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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 tax in East Baton Rouge Parish shall be distributed22
as follows:23
(a) Forty percent to the Arts Council of Greater Baton Rouge for its24
operations and programs.25
(b) Fifteen percent to the Shaw Center for the Arts.26
(c) Fifteen percent to the general fund of the parish of East Baton Rouge, city27
of Baton Rouge.28
(d) Fifteen percent to the general fund of the East Baton Rouge Parish29
Sheriff's Office.30 ENROLLEDHB NO. 971
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(e) Fifteen percent to the general fund of the East Baton Rouge District1
Attorney's Office.2
(2) The avails of the tax in Ouachita Parish shall be distributed as follows:3
(a) Fifty percent to the general fund of the parish.4
(b) Twenty percent to Score.5
(c) Twenty percent to the parish council on aging.6
(d) Ten percent to the food bank of Ouachita.7
(3) The avails of the tax in Rapides Parish shall be distributed as follows:8
(a) Fifty percent to the parish council on aging.9
(b) Fifty percent to the Food Bank of Central Louisiana.10
D. The parish governing authority shall prescribe in the ordinance creating11
the district any other purposes of the district. The parish and the district may enter12
into a cooperative endeavor agreement providing for cooperative efforts to exercise13
any authorized governmental function of the parish.14
Section 2. This Act shall become effective upon signature by the governor or, if not15
signed by the governor, upon expiration of the time for bills to become law without signature16
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If17
vetoed by the governor and subsequently approved by the legislature, this Act shall become18
effective on the day following such approval.19
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: