2012 -- S 2465

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LC01185

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO MOTOR AND OTHER VEHICLES - RENTAL VEHICLE SURCHARGE

     Introduced By: Senator John J. Tassoni

     Date Introduced: February 16, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 31-34.1-2 of the General Laws in Chapter 31-34.1 entitled "Rental

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Vehicle Surcharge" is hereby amended to read as follows:

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     31-34.1-2. Rental vehicle surcharge. -- (a) Each rental company shall collect, at the time

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a motor vehicle is rented in this state, on each rental contract, a surcharge equal to six percent

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(6.0%) eight percent (8.0%) of gross receipts per vehicle on all rentals for each of the first thirty

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(30) consecutive days. The surcharge shall be computed prior to the assessment of any applicable

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sales taxes, provided, however, the surcharge shall be subject to the sales tax.

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      (b) The surcharge shall be included on the rental contract and collected in accordance

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with the terms of the rental contract. Fifty percent (50%) Sixty percent (60%) of the surcharge

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shall be retained by the rental company in accordance with this section and subsection (c), and

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fifty percent (50%) forty percent (40%) of the surcharge shall be remitted to the state for deposit

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in the general fund, on a quarterly basis in accordance with a schedule adopted by the tax

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administration. Each rental company collecting and retaining surcharge amounts may reimburse

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itself in accordance with this section from the funds retained for the total amount of motor vehicle

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licensing fees, title fees, registration fees and transfer fees paid to the state of Rhode Island and

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excise taxes imposed upon the rental companies' motor vehicles during the prior calendar year;

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provided, that rental companies shall not be authorized to reimburse themselves for title fees,

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motor vehicles licensing fees, transfer fees, registration fees and excise taxes unless those fees

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and taxes shall have been assessed and paid in full to the state or appropriate city or town prior to

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any reimbursement. No reimbursement shall be allowed upon the prepayment of any fees or

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excise taxes.

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      (c) At a date to be set by the state tax administrator, but not later than February 15th of

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any calendar year, each rental company shall, in addition to filing a quarterly remittance form, file

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a report with the state tax administrator on a form prescribed by him or her, stating the total

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amount of motor vehicles licensing fees, transfer fees, title fees, registration fees and excise taxes

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paid by the rental company in the previous year. The amount, if any, by which the surcharge

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collections exceed the amount of licensing fees, title fees, transfer fees, registration fees and

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excise taxes paid shall be remitted by the rental company to the state of Rhode Island for deposit

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in the general fund.

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     SECTION 2. This act shall take effect upon passage.

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LC01185

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO MOTOR AND OTHER VEHICLES - RENTAL VEHICLE SURCHARGE

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     This act would change the surcharge on each rental contract each time a motor vehicle is

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rented in the state from six percent (6.0%) to eight percent (8.0%). The surcharge that shall be

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retained by the rental company would change from fifty percent (50%) to sixty percent (60%) and

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forty percent (40%) of said surcharge shall be remitted to the state.

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     This act would take effect upon passage.

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LC01185

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