CHAPTER 4-A. AUTOMOBILE RENTAL TAX

§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.

            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.