It is enacted by the General Assembly as follows:

SECTION 1. Title 31 of the General Laws entitled "Motor and Other Vehicles" is hereby amended by adding thereto the following chapter:

{ADD 31-34.1-1. Definitions. -- ADD} {ADD The following words and phrases which are used in this chapter shall, for the purposes of this chapter, have the following meanings:

(a) "Casualty loss" shall mean the complete or partial destruction of property resulting from an identifiable event of a sudden, unexpected or unusual nature, including but not limited to floods, storms, fires, motor vehicle accidents, which result in making a renter's vehicle inoperable, or the theft of a motor vehicle.

(b) "Gross receipts" shall mean the total amount of money for the value or other consideration received by a renter of motor vehicles from motor vehicles rented in the state of Rhode Island. Gross receipts includes any charges related to the rental including gas, insurance, etc. whether or not set out in separate contract. Nothwithstanding the foregoing, however, gross receipts shall not include monies received from a renter of a motor vehicle who rents such vehicle due to a casualty loss, during the time that the renter's own motor vehicle is undergoing repairs for the casualty loss.

(c) "Motor vehicle" shall mean a private passenger motor vehicle designed to transport fifteen (15) or fewer passengers that is rented without a driver and is part of a fleet of five (5) or more passenger vehicles used for that purpose, owned or leased by the same person or entity.

(d) "Rental company" shall mean any business entity engaged in the business of renting motor vehicles in the state of Rhode Island.

(e) "Rented in this state" shall mean any vehicle if it is picked up by or delivered to the renter in this state.

(f) "Excise tax" shall mean the tax imposed under chapter 44-34 of the Rhode Island general laws. ADD}

{ADD 31-34.1-2. Rental vehicle surcharge. -- ADD} {ADD (a) Each rental company shall collect, at the time a motor vehicle is rented in this state, on each rental contract, a surcharge equal to six percent (6.0%) of gross receipts per vehicle on all rentals for a period of thirty-one (31) or fewer consecutive days. The surcharge shall be computed prior to the assessment of any applicable sales taxes, provided, however, such surcharge shall be subject to the sales tax.

(b) The surcharge shall be included on the rental contract and collected in accordance with the terms of the rental contract. The surcharge shall be retained by the rental company in accordance with this section and subsection (c). Each rental company collecting and retaining surcharge amounts may reimburse itself from the funds retained for the total amount of motor vehicle licensing fees, title fees, registration fees and transfer fees paid to the state of Rhode Island and excise taxes imposed upon the rental companies' motor vehicles during the prior calendar year; provided, however, that rental companies shall not be authorized to reimburse themselves for title fees, motor vehicles licensing fees, transfer fees, registration fees and excise taxes unless those fees and taxes shall have been paid in full to the state or appropriate city or town prior to any reimbursement.

(c) At a date to be set by the state tax administrator, but not later than February 15th of any calendar year, each rental company shall file a report with the state tax administrator on such form prescribed by him or her, stating the total amount of motor vehicles licensing fees, transfer fees, title fees, registration fees and excise taxes paid by the rental company in the previous year. The amount, if any, by which the surcharge collections exceed the amount of licensing fees, title fees, transfer fees, registration fees and excise taxes paid shall be remitted by the rental company to the state of Rhode Island for deposit in the general fund. ADD}

{ADD 31-34.1-3. Regulations. -- ADD} {ADD The tax administrator shall promulgate rules and regulations necessary to implement the provisions of this chapter and all administrative provisions of chapters 18 and 19 of title 44 relating to interest, penalties, assessments and hearings shall apply. ADD}

{ADD 31-34.1-4. False reports -- Penalties. -- ADD} {ADD Any person making a false report to the tax administrator with the intent to misrepresent the amount of title fees, motor vehicle licensing fees, transfer fees or excise fees paid or the amount of surcharges collected shall upon conviction of each offense be fined not more than one thousand dollars ($1,000) or be imprisoned for not more than one (1) year, or by both fine and imprisonment. ADD}

SECTION 2. This act shall take effect upon passage.