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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
REVISED
rental vehicle license surcharge; exceptions
Purpose
Exempts all-terrain vehicles, off-highway vehicles and off-road recreational motor vehicles from the five percent rental vehicle surcharge.
Background
Current statute requires anyone in the business of renting motor vehicles without drivers to collect a five percent surcharge at the time a vehicle is rented if the vehicle is rented for a period of 180 days or less. The surcharge is computed based on the total amount stated in the rental contract but does not include any transaction privilege taxes or stadium district fees. Monies collected from the surcharge are only to be used for the reimbursement of the amount of vehicle license tax (VLT) imposed on rental vehicles, and any surcharges collected in excess of the VLT paid is remitted to the Highway User Revenue Fund (HURF) for distribution using existing statutory formulas.
For the purposes of collecting the surcharge, rental vehicle is defined as a passenger vehicle without a driver that is designed to transport 15 or fewer passengers or a truck, trailer or semitrailer that has a gross vehicle weight of less than 26,001 pounds that is rented without a driver for the purpose of transporting personal property (A.R.S. § 28-5810).
According to a Joint Legislative Budget Committee fiscal note, H.B. 2730 would result in an ongoing loss of VLT revenues of $21,000 per year, based on estimates provided by the Arizona Department of Transportation. The fiscal note is not able to determine the cost of one-time loss of revenues from uncollected surcharges required to be remitted by statute (JLBC fiscal note).
Provisions
1. Exempts all-terrain vehicles, off-highway vehicles and off-road recreational motor vehicles from the five percent rental vehicle surcharge.
2.
States that a person, including a person who lost an appeal or ruling
related to the remittance of the five percent rental vehicle surcharge, who is
in the business of renting all-terrain,
off-highway and off-road recreational motor vehicles is not required to remit
uncollected surcharges required before the effective date of this legislation.
3. Makes conforming changes.
4. Becomes effective on the general effective date.
Revisions
· Updates the fiscal impact statement.
House Action Senate Action
TRANS 2/12/20 DPA 5-4-0-0 TPS 3/11/20 DP 4-3-1
3rd Read 2/27/20 31-29-0
Prepared by Senate Research
March 17, 2020
ZD/kja