08 LC 34
1552S
The
Senate Finance Committee offered the following substitute to SB
181:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 7 of Chapter 2 of Title 40 of the Official Code of Georgia
Annotated, relating to motor vehicle license fees and classes, so as to provide
for the imposition of a fee by motor vehicle rental companies with respect to
certain motor vehicle fees and taxes; to provide for definitions; to provide for
procedures, conditions, and limitations; to provide for applicability of sales
and use taxation with respect to such fees; to provide for related matters; to
provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
7 of Chapter 2 of Title 40 of the Official Code of Georgia Annotated, relating
to motor vehicle license fees and classes, is amended by adding a new Code
section to read as follows:
"40-2-167.
(a)
As used in this Code section, the term:
(1)
'Motor vehicle rental company' means an individual or business entity whose
primary business activity is renting motor vehicles to consumers under rental
agreements for periods of 90 days or less.
(2)
'Recoverable facility charges' means governmental and private concession fees,
including airport concession fees, consolidated facility charges, and the fees
and charges incurred thereon, actually paid by a motor vehicle rental
company.
(3)
'Recoverable fees and taxes' means costs incurred by a motor vehicle rental
company to license, title, register, plate, and inspect rental motor vehicles
and ad valorem taxes imposed in connection with the registration of rental motor
vehicles.
(4)
'Rental agreement' means an agreement under which a rental motor vehicle is
rented or leased.
(5)
'Rental motor vehicle' means a motor vehicle that is rented or leased without a
driver.
(b)
Pursuant to a written rental agreement between a motor vehicle rental company
and a rental customer, a motor vehicle rental company may include separately
stated fees in a rental agreement, which may include, but shall not be limited
to, recoverable facility charges and recoverable fees and taxes, as provided in
this Code section.
(c)
If a motor vehicle rental company includes a charge for recoverable fees and
taxes as a separately stated fee in a rental transaction, the amount of the
charge shall represent the motor vehicle rental company´s good faith
estimate of the motor vehicle rental company´s daily charge as calculated
by the motor vehicle rental company to recover its actual total annual
recoverable fees and taxes on its rental motor vehicle fleet for the
corresponding calendar year.
(d)
If the total amount of the recoverable fees and taxes collected by a motor
vehicle rental company under this Code section in any calendar year exceeds the
motor vehicle rental company´s actual recoverable fees and taxes for that
calendar year, the motor vehicle rental company shall:
(1)
Retain the excess amount; and
(2)
Adjust the estimated average per vehicle fee for recoverable fees and taxes for
the following calendar year by a corresponding amount.
Nothing
herein shall prevent a motor vehicle rental company from making adjustments to
the per vehicle recoverable fees and taxes charge during the calendar year to
reflect interim developments affecting the motor vehicle rental company´s
prior estimated per vehicle fee for such calendar year.
(e)
The recovery fee authorized by this Code section for recoverable fees and taxes
shall be subject to state and local sales and use tax in the manner and to the
same extent as the fee charged for the lease or rental of the rental motor
vehicle."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.