East Baton Rouge Parish would be able to create an automobile rental tax district under legislation approved Wednesday afternoon in the Louisiana House that could generate dollars for the arts and local government.
The House voted 92-4 for the legislation sponsored by state Rep. Regina Barrow, D-Baton Rouge. The bill now heads to the state Senate for debate.
The authority for a state and local tax expires June 30. Facing loss of the revenues, several legislators offered legislation aimed at keeping the taxing authority.
Under current law, the state is authorized to levy a 2.5 percent tax and local governments one-half of 1 percent on gross proceeds from the lease or rental of automobiles.
Under House Bill 971, the parish would create the automobile rental tax district which would be authorized with a vote of the people to levy a tax of up to 3 percent.
Those lease or rental agreements that exceed 29 days would not be subject to the tax.
According to the Legislative Fiscal Office, a 3 percent tax would raise $750,000 annually in the parish.
Barrow’s bill dedicates any money generated as follows: 60 percent to the Arts Council of Greater Baton Rouge for operations and grants, 23 percent to the Shaw Center for the Arts and 17 percent to the city-parish.