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 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.
(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%.