HB594 Summary

• Montgomery County Commission is authorized to levy and collect a rental tax on lessees or renters of tangible personal property at rates up to 0.75% for automotive vehicles and trucks, and up to 2% for all other tangible personal property.

• The rental tax is classified as a direct tax on the lessee or renter (not a gross receipts tax), collected by the lessor or vendor for administrative convenience.

• Rental passenger vehicles and rental trucks are exempt from the rental tax; other exemptions include film rentals, docking facilities, leases with furnished residential property, and aircraft leased by air carriers with hub operations in Alabama.

• Tax administration follows state rental tax procedures and statutes; the county commission may collect the tax itself, contract with the state Department of Revenue, or use a private collection agency, retaining up to 5% of gross proceeds as a collection fee.

• Rental tax revenues are deposited in the county general fund; the county may issue bonds and other debt instruments secured by rental tax proceeds for any lawful purpose.