GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 1076

Short Title:  Reform Local Tax on Rental Cars.	(Public)

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Sponsors: Senator Cooper.

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Referred to:  Finance.

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April 15, 1999

A BILL TO BE ENTITLED
AN ACT TO REPEAL THE PROPERTY TAX ON CERTAIN VEHICLES LEASED OR RENTED UNDER A SHORT-TERM LEASE OR RENTAL AND TO REPLACE THE TAX REVENUE WITH A LOCAL OPTION PRIVILEGE LICENSE TAX ON GROSS RECEIPTS DERIVED FROM CERTAIN SHORT-TERM CAR RENTALS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-275 is amended by adding a new subdivision to read:
"(41)	A u-drive-it passenger vehicle that is leased or rented under a 30-day lease or rental by a retailer. For the purposes of this subdivision, the terms "retailer", "30-day lease or rental", and "u-drive-it passenger vehicle"have the same meanings as in G.S. 153A-152.2 and G.S. 160A-211.2."
Section 2.  Chapter 153A of the General Statutes is amended by adding a new section to read:
"§ 153A-152.2.  Privilege license tax on rental car business.
A county may levy an annual privilege license tax on the gross receipts of a retailer engaged in the business of leasing or renting u-drive-it passenger vehicles.  The tax rate may not exceed two percent (2%) of the retailer's gross receipts from 30-day leases or rentals of u-drive-it passenger vehicles.  The following definitions apply in this section:
(1)	Retailer. – Defined in G.S. 105-164.3.
(2)	Thirty-day lease or rental. – A lease or rental made under a written agreement to lease or rent a u-drive-it passenger vehicle to the same person for a period of no more than 30 consecutive days.
(3)	U-drive-it passenger vehicle. – A passenger vehicle that is registered under G.S. 20-87(2) and has a passenger capacity of no more than 15 passengers."
Section 3.  Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A-211.2.  Privilege license tax on rental car business.
A city may levy an annual privilege license tax on the gross receipts of a retailer engaged in the business of leasing or renting u-drive-it passenger vehicles.  The tax rate may not exceed two percent (2%) of the retailer's gross receipts from 30-day leases or rentals of u-drive-it passenger vehicles.  The following definitions apply in this section:
(1)	Retailer. – Defined in G.S. 105-164.3.
(2)	Thirty-day lease or rental. – A lease or rental made under a written agreement to lease or rent a u-drive-it passenger vehicle to the same person for a period of no more than 30 consecutive days.
(3)	U-drive-it passenger vehicle. – A passenger vehicle that is registered under G.S. 20-87(2) and has a passenger capacity of no more than 15 passengers."
Section 4.  Section 1 of this act becomes effective for taxes imposed for taxable years beginning on or after July 1, 2000.  The remainder of this act becomes effective July 1, 2000.