Louisiana § 47:551 Imposition of tax

Louisiana Statutes

§ 47:551 — Imposition of tax

Louisiana·Title 47 Revenue and Taxation

§551. Imposition of tax

A.There is hereby levied 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 r

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§551. Imposition of tax
A. There is hereby levied 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.(1) 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 this
Subtitle 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.
(2) The state and local taxes levied pursuant to Subsection A of this Section shall be
filed and paid electronically to the secretary by dealers as defined in R.S. 47:301(4)(n).
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 and whose primary purpose is not the transport of freight or goods, 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) One-third of the tax shall be distributed to the city of Westwego for promotion
of the Westwego Performing Arts Center, including events and programs.
(c) One-third of the tax shall be distributed to Jefferson Parish and dedicated in equal
shares to:
(i) Capital improvements and maintenance of Lafrienere Park.
(ii) Maintenance and litter abatement of the Westbank Expressway in unincorporated
Jefferson Parish.
(iii) Maintenance, operation, and promotion of events at the Jefferson Parish Arts
Center.
(4) The local tax as provided in Subsection A of this Section that is collected in
Orleans Parish shall be distributed as follows:
(a) Twenty-five percent to the New Orleans Regional Black Chamber of Commerce
if such distribution is made pursuant to a cooperative endeavor agreement between the
chamber and the city of New Orleans which provides conditions such that the distribution
is for a public purpose and is not gratuitous and the city receives something of comparable
value, all in accordance with Article VII, Section 14(A) of the Constitution of Louisiana.
(b) Seventy-five percent to the New Orleans Council on Aging.
(5) The local tax as provided in Subsection A of this Section that is collected in
Bossier Parish shall be distributed to the Bossier Parish Council on Aging.
(6) The local tax as provided in Subsection A of this Section that is collected in
Caddo Parish shall be distributed as follows:
(a) Eighty percent of the tax shall be distributed to Louisiana State University and
Agricultural and Mechanical College Medical School at Shreveport.
(b) Twenty percent of the tax shall be distributed to the Caddo Parish Council on
Aging.
(7) The local tax as provided in Subsection A of this Section that is collected in
Calcasieu Parish shall be distributed to Airport District Number One of Calcasieu Parish for
the maintenance and operation of the Lake Charles Regional Airport.
(8) The local tax as provided in Subsection A of this Section that is collected in East
Baton Rouge Parish shall be distributed as follows:
(a) Forty percent to the East Baton Rouge Office of the Public Defender.
(b) Forty percent to Capital Area Human Services.
(c) Twenty percent to the Arts Council of Greater Baton Rouge for its operations and
programs.
(9) The local tax provided in Subsection A of this Section which is collected in
Lafourche Parish shall be distributed to the Special Education District No. 1.
(10) The local tax provided in Subsection A of this Section, which is collected in
Terrebonne Parish shall be distributed as follows:
(a) One third of the tax shall be distributed to the Houma Downtown Development
Corporation.
(b) One third of the tax shall be distributed to the South Louisiana Wetlands
Discovery Center.
(c) One third of the tax shall be distributed to the Terrebonne ARC.
(11) The local tax provided in Subsection A of this Section which is collected in St.
Mary Parish shall be distributed to the St. Mary Parish Council on Aging.
(12) The local tax provided in Subsection A of this Section, which is collected in
West Carroll Parish shall be distributed to the West Carroll Council on Aging.
(13) The local tax provided in Subsection A of this Section, which is collected in
East Carroll Parish shall be distributed to the East Carroll Council on Aging.
(14) The local tax provided in Subsection A of this Section, which is collected in
Madison Parish shall be distributed to the Madison Council on Aging.
(15) The local tax provided in Subsection A of this Section, which is collected in
Richland Parish shall be distributed to the Richland Council on Aging.
(16) The local tax provided in Subsection A of this Section, which is collected in
Morehouse Parish shall be distributed to the Morehouse Council on Aging.
(17) The local tax provided in Subsection A of this Section, which is collected in
Ouachita Parish shall be distributed half each to the Ouachita Council on Aging and the
West Ouachita Senior Center.
(18) The local tax provided in Subsection A of this Section, which is collected in
Union Parish shall be distributed to the Union Council on Aging.
(19) The local tax provided in Subsection A of this Section, which is collected in
Lincoln Parish shall be distributed to the Lincoln Council on Aging.
(20) The local tax provided in Subsection A of this Section, which is collected in
Jackson Parish shall be distributed to the Jackson Council on Aging.
(21) The local tax provided in Subsection A of this Section, which is collected in
Winn Parish shall be distributed to the Winn Council on Aging.
(22) The local tax provided in Subsection A of this Section, which is collected in
Grant Parish shall be distributed to the Grant Council on Aging.
(23) The local tax provided in Subsection A of this Section, which is collected in
Rapides Parish shall be distributed to the Rapides Council on Aging.
(24) The local tax provided in Subsection A of this Section, which is collected in
Caldwell Parish shall be distributed to the Caldwell Council on Aging.

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Legislative History

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; Acts 2016, 1 st Ex. Sess., No. 14, §1, eff. April 1, 2016; Acts 2017, No. 397, §1, eff. June 23, 2017; Acts 2018, 2 nd Ex. Sess., No. 10, §2, eff. July 1, 2018; Acts 2020, No. 278, §2, eff. Jan. 1, 2021.