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Regular Session, 2014
HOUSE BILL NO. 585
BY REPRESENTATIVES STOKES, ADAMS, BILLIOT, LORUSSO, TALBOT, AND
WILLMOTT AND SENATORS MARTI NY AND PETERSON
TAX/LOCAL: Authorizes Jefferson 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 in Jefferson Parish; to provide for the boundaries,3
governance, and powers of the district; to authorize the levy of a tax on the lease or4
rental of certain automobiles under certain circumstances; to provide for the use of5
the avails of the tax; to provide for an effective date; and to provide for related6
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
§551.1. Automobile rental tax district; Jefferson Parish13
A.(1) The governing authority of Jefferson Parish may create, by ordinance,14
an automobile rental tax district, referred to in this Section as the "district". The15
district shall be a political subdivision of the state as defined in the Constitution of16
Louisiana.17
(2) The boundaries of the district shall be coterminous with the boundaries18
of the parish.19 HLS 14RS-214 ENGROSSED
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(3) The parish governing authority shall be the governing authority of the1
district.2
B.(1)(a) The district is authorized to levy an automobile rental tax, not to3
exceed one-half percent of the gross proceeds derived from the lease or rental of an4
automobile pursuant to an automobile rental contract, less any sales and use tax5
included in such contract. The tax shall be in addition to any tax, fee, or license6
imposed directly or indirectly.7
(b) The tax shall be levied only after the question of its levy has been8
approved by a majority of the registered voters of the district who vote on the9
proposition authorizing the tax at an election held for that purpose in accordance10
with the Louisiana Election Code. The election on the question of the levy of the tax11
shall be held at the same time as a regularly scheduled election in Jefferson Parish.12
(c) The tax shall not apply to any automobile rented by an insurance13
company as a replacement vehicle for a policyholder or by an automobile dealer as14
a replacement vehicle while a customer's vehicle is being serviced or repaired, nor15
shall the tax apply to any individual or business who rents a vehicle as a replacement16
vehicle while a vehicle is being repaired if the individual presents to the renter, upon17
return of the rented vehicle, a copy of the repair or service invoice.18
(2) For purposes of this Section "automobile rental contract" means all19
agreements for the rental, for a period of not more than twenty-nine calendar days20
of an automobile, without a driver, designed to carry fewer than nine passengers.21
Rental agreements for a period of more than twenty-nin e calendar days are not22
subject to the tax unless the actual period of the rental agreement is less than twenty-23
nine days as a result of the exercise of a cancellation clause.24
C. The avails of the taxes collected shall be distributed as follows:25
(1) One-third of the revenue shall be distributed to the city of Kenner and26
used by Kenner for arts and recreation.27
(2) Two-thirds of the revenue shall be distributed as follows:28
(a) Four-twelfths to the Westwego Performing Arts Center.29 HLS 14RS-214 ENGROSSED
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(b) Three-twelfths to the Jefferson Performing Arts Society for programs on1
the east and west banks.2
(c) Two-twelfths to the Gretna Cultural Center for the Arts.3
(d) All remaining monies shall be deposited into a dedicated funding account4
and used exclusively for the operation, administration, and maintenance of cultural5
facilities in unincorporated areas of Jefferson Parish.6
D. The parish governing authority shall prescribe in the ordinance creating7
the district any other purposes of the district. The parish and the district may enter8
into a cooperative endeavor agreement providing for cooperative efforts to exercise9
any authorized governmental function of the parish.10
Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor11
and subsequently approved by the legislature, this Act shall become effective on July 1,12
2014, or on the day following such approval by the legislature, whichever is later.13
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)]
Stokes HB No. 585
Abstract: Authorizes Jefferson Parish to create an automobile rental tax district.
Present law (R.S. 47:551) levies, for the period from Aug. 1, 1990, through June 30, 2012,
a state tax of 2-1/2% and a "local" tax of ½% on 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.
Present 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.
Present law defines "automobile rental contract" to mean an agreement for the rental of an
automobile without a driver, designated to carry fewer than nine passengers, for a rental
period of not more than 29 calendar days. Provides that rental agreements in excess of 29 HLS 14RS-214 ENGROSSED
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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.
Present law provides that tax is payable to the secretary of the Dept. of Revenue. Requires
that the tax be collected and enforced pursuant to the provisions of present law (Chapter 2
of Subtitle II of Title 47 of the La. Revised Statutes of 1950) insofar as the provisions are
not in conflict with present law (R.S. 47:551).
Present law requires that the local tax be remitted to the secretary of the Dept. of Revenue
who collects the tax as an agent of the local government. Authorizes the secretary to assess
a collection fee, not to exceed ½% of the proceeds of the tax, as reimbursement for the actual
cost of collection.
Present law requires the secretary to distribute monthly the proceeds of the tax to the central
local sales and use tax collector or, if none, the parish governing authority. Requires the
central local sales and use tax collector or governing authority to distribute at no charge the
tax proceeds received from the secretary to each political subdivision in the parish which
levies a sales and use tax. Provides that the distribution shall be in accordance with each
political subdivision's pro rata share of local sales and use tax receipts collected to the total
of all such taxes collected within the parish.
Present law provides that the local tax collected in Jefferson Parish shall be distributed as
follows:
(1)1/3 to the city of Kenner for arts and recreation.
(2)2/3 to the Jefferson Performing Arts Society for programs on the east and west banks
and 1/3 of that amount shall be distributed to the Westwego Performing Arts Center.
Proposed law retains present law and additionally authorizes the governing authority of
Jefferson Parish to create, by ordinance, an automobile rental tax district as a political
subdivision of the state. Provides that the boundaries of the district shall be coterminous
with the boundaries of the parish. Provides that the parish governing authority shall be the
governing authority of the district.
Proposed law authorizes the district, subject to voter approval, to levy an automobile rental
tax, not to exceed ½% 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. Requires that the election on the question of the levy of the tax be held at the
same time as a regularly scheduled election in the parish.
Proposed law excludes the same transactions as present law (R.S. 47:551) from any tax that
may be imposed. Defines "automobile rental contract" to mean the same as defined in
present law (R.S. 47:551). Provides that 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 requires that the avails of the taxes be distributed as follows:
(1)1/3 to the city of Kenner for arts and recreation.
(2)2/3 to be distributed as follows:
(a)4/12 to the Westwego Performing Arts Center.
(b)3/12 to the Jefferson Performing Arts Society for programs on the east and
west banks. HLS 14RS-214 ENGROSSED
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(c)2/12 to the Gretna Cultural Center for the Arts.
(d)All remaining monies shall be deposited into a dedicated funding account
and used exclusively for the operation, administration, and maintenance of
cultural facilities in unincorporated areas of Jefferson Parish.
Effective July 1, 2014.
(Adds R.S. 47:551.1)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Municipal, Parochial and
Cultural Affairs to the original bill.
1. Changes the maximum automobile rental tax from 3% to ½%.