Corrected: Louisiana Governor Vetoes Three Car Rental Tax Bills

Three bills went through the Louisiana Legislature that aimed at allowing various parishes to create car rental taxes up to 3% of the gross proceeds but were vetoed by Gov. Bobby Jindal on June 15.

The bills would have replaced a car rental tax that ends June 30. “I have made a commitment to the taxpayers of Louisiana to oppose all attempts to raise taxes,” the governor said about the bills in his veto messages.

A fourth excise tax bill, House Bill 961, never made it through the House, though it would have authorized parishes to create an automobile tax district at no more than half of 1% of the gross proceeds from the lease or rental of a vehicle, less any sales and use tax included in the contract, and would have excluded insurance replacement vehicles, vehicles rented by a dealership, or vehicles rented by a business or individual to use while their vehicle is being repaired if a repair invoice is presented.

The three bills that were vetoed include:

  • HB 934 – would have authorized Jefferson and Orleans parishes to create an automobile rental tax district not to exceed 3% of gross proceeds. 
  • HB 971 – would have authorized East Baton Rouge Parish to create an automobile rental tax district not to exceed 3% of gross proceeds. 
  • SB 350 – would have indefinitely authorized the levy and collection of a local tax of 3% on the gross proceeds derived from the lease or rental of a vehicle, in which collection of the tax must be approved by the registered voters of the parish.

The American Car Rental Association (ACRA) sent the governor a letter on May 18 requesting the governor's opposition to any legislation "that would continue discriminatory and arbitrary excise taxes on any car rental transactions." The letter stated that ACRA member companies operate more than 300 branch offices, employ almost 1,900 residents and purchase the majority of vehicles locally.

"Our industry opposes the continuation of discriminatory excise taxes that are imposed on a single group of customers simply because they choose to rent a car," said the letter, which is signed by ACRA Executive Director Sharon Faulkner. "Adding to the basic unfairness of those taxes is the fact that the funds will be used for purposes unrelated to renting a car."

This article was corrected since the Louisiana Legislature for 2011-2012 has adjourned; therfore there are no remaining bills in the House as previously stated. We apologize for this error. 

Comments

  1. Tom [ June 20, 2012 @ 05:43PM ]

    A public official with principals, hard to believe. Let's make sure we don't loose him.

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