HB299 Summary

• Montgomery County Commission is authorized to levy and collect a rental tax on the leasing or renting of tangible personal property, classified as a direct tax on lessees/renters rather than a gross receipts tax.

• Rental tax rates are capped at 0.75% for automotive vehicles, trailers, and house trailers (except rental passenger vehicles and rental trucks), and 2% for all other tangible personal property subject to the tax.

• Lessors and vendors must add the tax to rental prices and collect it from renters/lessees, with tax remitted monthly on or before the 20th of the following month, or quarterly/annually if collections average less than $200 per month.

• Numerous exemptions apply including films, docking facilities, residential property, equipment for pollution control, aircraft leases for air carriers with hub operations, and nuclear fuel assemblies.

• County Commission may use rental tax proceeds for bonds, warrants, and indebtedness; can designate other governmental entities to receive and pledge proceeds; and collection fees cannot exceed 5% of gross proceeds or actual cost of collection, whichever is less.