HB 797 - Motor vehicle rentals; fixed rental fee

Georgia House of Representatives - 1995/1996 Sessions

HB 797 - Motor vehicle rentals; fixed rental fee

Page Numbers - 1/ 2/ 3
Code Sections - 48-8-140/ 48-8-141/ 48-8-142/ 48-8-143/ 48-8-144
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House Comm: Ind / W&M Senate Comm: / House Vote: Yeas Nays Senate Vote: Yeas Nays ---------------------------------------- House Action Senate ---------------------------------------- 2/20/95 Read 1st Time 2/21/95 Read 2nd Time 2/28/95 Favorably Reported Sub Committee Amend/Sub 2/21* Recommitted ---------------------------------------- Withdrawn and Recommitted Recommitted 3/17/95 Code Sections amended: 40-1-6
HB 797 LC 18 6917S A BILL TO BE ENTITLED AN ACT 1- 1 To amend Chapter 8 of Title 48 of the Official Code of 1- 2 Georgia Annotated, relating to sales and use taxes, so as to 1- 3 provide for the taxation of certain leasing or renting of 1- 4 private passenger motor vehicles for periods of 31 days or 1- 5 less; to provide for the levy, imposition, and rate of such 1- 6 tax; to provide for procedures, returns, and penalties; to 1- 7 provide for a credit; to provide for powers, duties, and 1- 8 authority of the state revenue commissioner; to provide for 1- 9 related matters; to provide an effective date; to repeal 1-10 conflicting laws; and for other purposes. 1-11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. 1-12 Chapter 8 of Title 48 of the Official Code of Georgia 1-13 Annotated, relating to sales and use taxes, is amended by 1-14 adding a new article at the end thereof, to be designated 1-15 Article 4, to read as follows: "ARTICLE 4 1-16 48-8-140. (Index) 1-17 As used in this article, the term: 1-18 (1) 'Gross lease or rental charge' is the total amount 1-19 of money or the value or other consideration received 1-20 from a motor vehicle which is rented or leased in this 1-21 state for a rental period of 31 or fewer consecutive 1-22 days but shall exclude cash discounts allowed and taken. 1-23 (2) 'Motor vehicle' means a private passenger motor 1-24 vehicle designed to transport 15 or fewer passengers 1-25 that is rented without a driver and is part of a fleet 1-26 of five or more passenger vehicles used for such purpose 1-27 and owned or leased by the same person or entity. -1- (Index) LC 18 6917S 2- 1 48-8-141. (Index) 2- 2 (a) There is levied and imposed a tax on each lease or 2- 3 rental of a motor vehicle under a contract made for a 2- 4 rental period of 31 or fewer consecutive days. Each 2- 5 person in this state to whom a motor vehicle is so leased 2- 6 or rented shall be liable for a tax on such lease or 2- 7 rental at the rate of 3 percent of the gross lease or 2- 8 rental charge. 2- 9 (b) The tax shall be paid to the person who leases or 2-10 rents the property by the person to whom the property is 2-11 leased or rented. A person who leases or rents property 2-12 to others as a dealer under this article shall remit the 2-13 tax to the commissioner as provided in this article. When 2-14 received by the commissioner, the tax shall be a credit 2-15 against the tax imposed on the person who leases or rents 2-16 the property to others. Every person who leases or rents 2-17 motor vehicles for a rental period of 31 or fewer 2-18 consecutive days in this state to others shall be a dealer 2-19 and shall be liable for a tax on such lease or rental at 2-20 the rate of 3 percent of the gross lease or rental 2-21 proceeds, or the amount of taxes collected by such dealer 2-22 from persons to whom such dealer leases or rents tangible 2-23 personal property, whichever is greater. 2-24 (c) No lease or rental under this article shall be taxable 2-25 to the person who leases or rents motor vehicles for a 2-26 rental period of 31 or fewer consecutive days to another 2-27 which is not taxable to the person to whom the motor 2-28 vehicle is leased or rented. 2-29 48-8-142. (Index) 2-30 A tax levied pursuant to this article shall be exclusively 2-31 administered and collected by the commissioner. Except as 2-32 otherwise provided in this article such administration and 2-33 collection shall be accomplished in the same manner and 2-34 subject to the same applicable provisions, procedures, and 2-35 penalties provided in Article 1 of this chapter; provided, 2-36 however, that all moneys collected from each taxpayer by 2-37 the commissioner shall be applied first to such taxpayer's 2-38 liability for taxes owed the state. 2-39 48-8-143. (Index) 2-40 Not later than February 15, 1997, and each year 2-41 thereafter, a tax return remitting taxes collected under 2-42 this article shall be filed with the commissioner and -2- (Index) LC 18 6917S 3- 1 shall separately identify the location of each 3- 2 establishment at which any of the taxes remitted were 3- 3 collected and shall specify the amount of gross lease and 3- 4 rental charges and the amount of taxes collected at each 3- 5 establishment for the period covered by the return in 3- 6 order to facilitate the determination by the commissioner 3- 7 that all taxes imposed by this article are collected and 3- 8 distributed according to situs of lease or rental. Such 3- 9 return shall also state the total amount of ad valorem tax 3-10 imposed upon such motor vehicles and paid thereon with 3-11 respect to the immediately preceding taxable year. Each 3-12 establishment at which any of the taxes remitted were 3-13 collected shall be entitled to a credit in an amount not 3-14 to exceed the total amount of ad valorem taxes paid with 3-15 respect to such vehicles. In no event shall the amount of 3-16 the credit exceed the amount of such ad valorem tax 3-17 liability, and any unused credit shall not be allowed to 3-18 be carried forward to apply to the taxpayer's succeeding 3-19 years' tax liability. 3-20 48-8-144. (Index) 3-21 The commissioner shall have the power and authority to 3-22 promulgate such rules and regulations as shall be 3-23 necessary for the effective and efficient administration 3-24 and enforcement of the collection of the tax imposed by 3-25 this article." SECTION 2. 3-26 This Act shall become effective on January 1, 1996. SECTION 3. 3-27 All laws and parts of laws in conflict with this Act are 3-28 repealed. -3- (Index)

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Last Updated on 01/02/97