SB212 Summary

• Authorizes Montgomery County Commission to levy and collect a rental tax on leasing or renting tangible personal property, with maximum rates of 0.75% for vehicles and trailers (except rental passenger vehicles and rental trucks which are exempt) and 2% for all other property.

• Establishes the rental tax as a direct tax on lessees or renters rather than a gross receipts tax on lessors or vendors, with lessors required to collect and remit the tax.

• Provides extensive exemptions including films, docking facilities, residential property, certain corporate leases, nuclear materials, aircraft for certificated air carriers, and vessels or railroad equipment in interstate commerce.

• Requires administration and collection in the same manner as state rental tax through the county, state Department of Revenue, or private collection agency, with collection fees not exceeding 5% of gross proceeds.

• Permits Montgomery County Commission to issue bonds, warrants, and other indebtedness secured by rental tax proceeds and to designate other governmental entities to receive and use allocated tax revenues.