HB162 Summary

• Removes restrictions preventing lessors from passing lease taxes on to lessees by allowing lessors to add taxes to leasing prices, with amounts passed on remaining subject to the lessor's privilege or license tax obligation.

• Establishes a new exemption from lease tax for motor vehicle lease transactions lasting at least 180 days with the federal government, state, county, or municipal entities, public school boards, or entities eligible for federal sales tax exemptions.

• Maintains existing lease tax rates of 4% for general tangible personal property, 1.5% for automotive vehicles and trailers, and 2% for linens and garments.

• Updates code language to current style and clarifies tax determination rules based on property delivery location or lessor's rental location, with special rules for automotive vehicles based on lessee's garage address.

• Becomes effective on the first day of the third month following passage and approval by the Governor.