§ 2301 — Authorization of vehicle rental tax by counties of the first class

Pennsylvania § 2301

• Jurisdiction: Pennsylvania
• Title 16: COUNTIES
• Part: PART II
• Ch. 23: VEHICLE RENTAL TAX

Text

(a) Authorization.--Notwithstanding any provision of this title or any other law, each county of the first class may impose an excise tax on the rental of a rental vehicle in that county. If the county is coterminous with a city of the first class, imposition of the tax in the county, if any, shall be by the city. The tax may be imposed on a person renting a rental vehicle at a rate of up to 2% of the purchase price of the rental.

(b) Proceeds.--

(1) The proceeds of the vehicle rental tax shall be dedicated solely to the payment of the costs of capital projects, including lease payments or service agreements with authorities for capital projects and debt service on bonds issued for capital projects.

(2) The Commonwealth pledges to and agrees with any person, firm or corporation subscribing to or acquiring bonds issued by the county, city or an authority to finance a capital project for which the tax was dedicated that the Commonwealth will not repeal this authorization or reduce the rate of tax authorized under this section until each of the bonds and the interest on the bonds have been paid or provision for the payment has been made.

(3) A county or city of the first class imposing the tax and dedicating the tax under this section may not repeal the tax, reduce the rate of the tax or revoke the dedication until each of the bonds and the interest on the bonds have been paid or provision for the payment has been made.

(4) Payments by a county or a city of the first class under a lease or service agreement may not constitute debt of the Commonwealth or of a county or city of the first class.

(c) Collection.--The vehicle rental tax shall be collected by each vehicle rental company in the county or city of the first class imposing the tax. The tax shall be collected at the time the rental vehicle is rented by the vehicle rental company and shall be remitted by the vehicle rental company to the county or city of the first class that imposed the tax in accordance with rules and regulations established by the county or city or the tax collection agencies of the county or city for collection and remittance of the tax. A person required to collect or pay over the tax authorized under this section and who fails to collect or pay over the tax shall be liable for the full amount of the tax, including interest or penalties which may be imposed by a county or city of the first class.

(d) Regulations.--The county or city of the first class and the county's or city's tax collection agencies may promulgate and enforce rules and regulations not inconsistent with this section relating to the collection, administration and enforcement of this section.

(e) Location.--For purposes of this section, the location of the rental of the vehicle is the place where the renter takes possession of the rental vehicle.

(f) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

"Rental vehicle."Any of the following:

(1) A private passenger motor vehicle designed to transport no more than 15 passengers.

(2) A truck, trailer or semitrailer used in the transportation of property other than commercial freight, that is:

(i) rented without a driver;

(ii) part of a fleet of at least five rental vehicles that are used for that purpose and owned or leased by the same person or entity; and

(iii) rented for a period of not more than 29 consecutive days.

"Vehicle rental company."An entity engaged in the business of renting motor vehicles in this Commonwealth.