HB267 Summary

• Increases the motor vehicle rental tax rate from 1.5% to 4% on automotive vehicles, truck trailers, semitrailers, and house trailers under Section 40-12-222, Code of Alabama 1975.

• Maintains the 4% tax rate for general tangible personal property leasing and the 2% rate for linens and garments rental.

• Allows lessors to pass tax amounts to lessees by adding them to the leasing price, with passed-on amounts included in gross proceeds subject to the privilege or license tax.

• Prohibits lessors from passing on tax amounts to state, municipal, or county lessees unless the flat amount collected includes both the tax and leasing fee.

• Becomes effective September 1, 2015, following passage and gubernatorial approval.