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Regular Session, 2012
SENATE BILL NO. 350
BY SENATOR MURRAY
TAX/LOCAL. Authorizes the levy and collection of a local tax of 3% on the gross proceeds
derived from the lease or rental of an automobile pursuant to an automobile rental contract
in any parish in which collection of the tax is approved by the registered voters of the parish.
(7/1/12)
AN ACT1
To amend and reenact R.S. 47:551(A) and (D)(3)(b), relative to local taxes; to authorize the2
levy and collection of a local tax on the gross proceeds derived from the lease or3
rental of an automobile pursuant to an automobile rental contract if approved by the4
registered voters of the parish; to provide for certain distribution of proceeds; and to5
provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:551(A) and (D)(3)(b) are hereby amended and reenacted to read8
as follows: 9
ยง551. Imposition of tax 10
A.(1) Beginning July 1, 2012, there is hereby levied, subject to the11
provisions of Paragraph (2) of this Subsection, for the period from August 1, 199012
through June 30, 2012, a state tax of two and one-half percent and a local tax of one-13
half of one three percent of the gross proceeds derived from the lease or rental of an14
automobile pursuant to an automobile rental contract, less any sales and use tax15
included in such contract. The tax shall be in addition to any tax, fee, or license16
imposed directly or indirectly. The tax shall not apply to any automobile rented by17 SB NO. 350
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an insurance company as a replacement vehicle for a policyholder or by an1
automobile dealer as a replacement vehicle while a customer's vehicle is being2
serviced or repaired, nor shall the tax apply to any individual or business who rents3
a vehicle as a replacement vehicle while his vehicle is being repaired if the4
individual presents to the renter upon return of the rented vehicle a copy of the repair5
or service invoice.6
(2) The tax shall be collected in a parish only after the question of its7
collection has been approved by a majority of the registered voters of the parish8
who vote on the proposition authorizing the tax at an election held for that9
purpose in accordance with the Louisiana Election Code. The election on the10
question of the collection of the tax in the parish shall be held at the same time11
as a regularly scheduled election in the parish.12
* * *13
D. * * *14
(3) The local tax as provided in Subsection A of this Section which is15
collected in Jefferson Parish shall be distributed as follows:16
* * *17
(b) Two-thirds of the tax shall be distributed as follows: to the Jefferson18
Performing Arts Society for programs on the east and west bank and one-third of that19
amount shall be distributed to the Westwego Performing Arts Center, one-sixth of20
that amount shall be distributed to the Gretna Cultural Center for the Arts, and21
the remainder of that amount shall be distributed to the Jefferson Performing22
Arts Society for programs on the east and west bank.23
* * *24
Section 2. The provisions of this Act shall not apply in Jefferson Parish or in Orleans25
Parish if a local law authorizing the levy of a three percent tax on the gross proceeds derived26
from the lease or rental of an automobile pursuant to an automobile rental contract in such27
parish is enacted and becomes law in the 2012 Regular Session of the Legislature.28
Section 3. This Act shall become effective on July 1, 2012; if vetoed by the governor29 SB NO. 350
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and subsequently approved by the legislature, this Act shall become effective on July 1,1
2012, or on the day following such approval by the legislature, whichever is later.2
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Alan Miller.
DIGEST
Murray (SB 350)
Present law levies for the period from August 1, 1990 through June 30, 2012, a state tax of
2.5% and a local tax of 0.5% of the gross proceeds derived from the lease or rental of an
automobile pursuant to an automobile rental contract.
Proposed law authorizes the levy and collection of a local tax of 3% indefinitely in any
parish in which collection of the tax is approved by the registered voters of the parish in an
election held at the same time as a regularly scheduled election in the parish.
Present law provides that 2/3's of tax collected in Jefferson Parish be distributed to the
Jefferson Performing Arts Society and 1/3 to the Westwego Performing Arts Center.
Proposed law requires that 2/3's of the local tax collected in Jefferson Parish be distributed
as follows:
1. 1/3 of the amount to the Westwego Performing Arts Center;
2. 1/6 of the amount to the Gretna Cultural Center for the Arts; and
3. The remainder of the amount to the Jefferson Performing Arts Society for programs
on the east and west bank.
Proposed law will not apply in Orleans and Jefferson parishes if a local law authorizing the
same is enacted and becomes law during the current session of the legislature.
Effective July 1, 2012.
(Amends R.S. 47:551(A) and (D)(3)(b))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Before the tax is collected in a parish, requires the approval of the registered
voters of the parish election held at the same time as a regularly scheduled
election in the parish.
Senate Floor Amendments to engrossed bill
1. Makes technical changes.
2. Changes the local tax from 0.5% to 3%.
3. Provides for the distribution of the local tax collected in Jefferson Parish. SB NO. 350
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4. Provides that taxes authorized in proposed law will not apply in Orleans and
Jefferson parishes if a local law authorizing the same is enacted and becomes
law during the current session of the legislature.