ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: TRANS DPA 5-4-0-0

HB 2730: rental vehicle license surcharge; exceptions

Sponsor: Representative Thorpe, LD 6

House Engrossed

Overview

Exempts all-terrain vehicles, off-highway vehicles and off-road recreational vehicles from the rental vehicles surcharge.

History

Pursuant to A.R.S. § 28-5810, a person engaged in the business of renting motor vehicles without drivers is required to collect, at the time the rental vehicle is rented, a 5% surcharge on each rental contract that is for a period of 180 day or less.

The surcharge collected must be used for reimbursement of the Vehicle License Tax (VLT) imposed on the rental vehicles. A business who collects a surcharge must file a report with the Arizona Department of Transportation (ADOT) which includes the total amount of VLT and vehicle rental revenues for the previous year. The report must also include the difference in which the surcharge exceeds the VLT. Surcharges collected in excess of the amount of VLT must be remitted, deposited and distributed to the Highway User Revenue Fund.

A motor vehicle that is owned by a government entity is exempt from the rental vehicle surcharge.

Provisions

1. Exempts all-terrain vehicles, off-highway vehicles or off-road recreational vehicles from the rental vehicles from the rental vehicle surcharge. (Sec. 1)

2. States that a person, including a person who lost an appeal or ruling, who is engaged in renting all-terrain vehicles, off-highway vehicles or off-road recreational vehicles without a driver is not required to remit uncollected surcharges that were required to be remitted prior to the effective date of this bill. (Sec. 1)

3. Makes a conforming change. (Sec. 1)

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7. Initials JT House Engrossed

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