2009 Louisiana Laws TITLE 47 Revenue and taxation :: RS 47:551 Imposition of tax

CHAPTER 4-A.  AUTOMOBILE RENTAL TAX

§551.  Imposition of tax

A.  There is hereby levied for the period from August 1, 1990 through June 30, 2012, a state tax of two and one-half percent and a local tax of one-half of one percent 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.  The tax shall be in addition to any tax, fee, or license imposed directly or indirectly.  The tax shall not apply to any automobile rented by an insurance company as a replacement vehicle for a policyholder or by an automobile dealer as a replacement vehicle while a customer's vehicle is being serviced or repaired, nor shall the tax apply to any 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.

B.  The tax shall be payable to the secretary of the Department of Revenue.  The tax shall be collected and payment enforced pursuant to the provisions of Chapter 2 of Subtitle II of Title 47 of the Revised Statutes of 1950 insofar as such provisions are not in conflict with this Section.  The secretary is authorized to promulgate rules and regulations necessary for the proper administration and enforcement of this Chapter.

C.  For purposes of this Chapter "automobile rental contract" shall mean all agreements for the rental of an automobile without a driver designated to carry less than nine passengers for a period of not more than twenty-nine calendar days.  Rental agreements for a period of more than twenty-nine calendar days shall not be subject to the tax, unless the actual period of the rental agreement is less than twenty-nine days as a result of the exercise of a cancellation clause.

D.(1)  The local tax as provided in Subsection A of this Section shall be remitted to the secretary of the Department of Revenue who shall collect said tax as an agent of local government.  The secretary may assess a collection fee, not to exceed one-half of one percent of the proceeds of the tax, as reimbursement for the actual cost of collection.

(2)  The secretary shall distribute monthly the proceeds of the tax to the central local sales and use tax collector or, if none, the parish governing authority.  The central local sales and use tax collector or governing authority shall 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 in accordance with each such 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.

(3)  The local tax as provided in Subsection A of this Section which is collected in Jefferson Parish shall be distributed as follows:

(a)  One-third of the tax shall be distributed to the city of Kenner for arts and recreation.

(b)  Two-thirds of the tax shall be distributed to the Jefferson Performing Arts Society for programs on the east and west bank and one-third of that amount shall be distributed to the Westwego Performing Arts Center.

(4)  The local tax as provided in Subsection A of this Section which is collected in Orleans Parish shall be distributed for road repairs and beautification projects.

Acts 1990, No. 390, §1, eff. Jan. 1, 1991; Acts 1994, No. 43, §1; Acts 1996, No. 7, §1, eff. July 1, 1996; Acts 1997, No. 658, §2; Acts 2000, No. 18, §1, eff. July 1, 2000; Acts 2002, No. 20, §1, eff. July 1, 2002; Acts 2003, No. 1186, §1.