PRINTER'S NO. 3521
No. 2409 Session of 2008
INTRODUCED BY JOSEPHS, GEORGE, HARPER, KULA, LEACH, LONGIETTI,
MANDERINO, McGEEHAN, PALLONE, ROEBUCK, SIPTROTH, THOMAS AND
YOUNGBLOOD, APRIL 2, 2008
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 2, 2008
AN ACT
1 Amending the act of August 9, 1955 (P.L.323, No.130), entitled,
2 as amended, "An act relating to counties of the first, third,
3 fourth, fifth, sixth, seventh and eighth classes; amending,
4 revising, consolidating and changing the laws relating
5 thereto; relating to imposition of excise taxes by counties,
6 including authorizing imposition of an excise tax on the
7 rental of motor vehicles by counties of the first class; and
8 providing for regional renaissance initiatives," further
9 providing for authorization of vehicle rental tax by counties
10 of the first class.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 2398 of the act of August 9, 1955
14 (P.L.323, No.130), known as The County Code, added June 25, 1999
15 (P.L.182, No.25), is amended to read:
16 Section 2398. Authorization of Vehicle Rental Tax by
17 Counties of the First Class.--(a) Notwithstanding any provision
18 of this act or any law to the contrary, each county of the first
19 class is hereby authorized to impose an excise tax on the rental
20 of a rental vehicle in that county. If the county is coterminous
21 with a city of the first class, imposition of the tax in that
1 county, if any, shall be by that city. The tax may be imposed on
2 any person renting a rental vehicle at a rate of up to two per
3 centum of the purchase price of the rental. For purposes of this
4 section, the situs of the rental of the vehicle is the place
5 where the renter takes possession of the rental vehicle.
6 (b) All of the proceeds of the vehicle rental tax shall be
7 dedicated solely to the payment of the costs of capital
8 projects, which costs may include, without limitation, lease
9 payments or service agreements with authorities for capital
10 projects and debt service on bonds issued for capital projects.
11 The Commonwealth does hereby pledge to and agree with any
12 person, firm or corporation subscribing to or acquiring bonds
13 issued by the county, city or an authority to finance a capital
14 project for which the tax was dedicated that the Commonwealth
15 itself will not repeal this authorization or reduce the rate of
16 tax authorized under this section until all such bonds, together
17 with the interest thereon, have been paid or provision for such
18 payment shall have been made, nor shall a county or city of the
19 first class imposing such tax and dedicating such tax as
20 provided in this section be permitted to repeal such tax or to
21 reduce the rate of such tax or to revoke such dedication until
22 all of such bonds, together with interest thereon, shall have
23 been paid or provision for such payment shall have been made.
24 Payments by a county or a city of the first class under any
25 lease or service agreement as hereinabove described shall not
26 constitute debt of the Commonwealth or of a county or city of
27 the first class.
28 (c) The vehicle rental tax shall be collected by each
29 vehicle rental company in the county or city imposing the tax.
30 The tax shall be collected at the time the rental vehicle is
20080H2409B3521 - 2 -
1 rented by that vehicle rental company and shall be remitted by
2 the vehicle rental company to the county or city that imposed
3 the tax in accordance with rules and regulations established by
4 the county or city or the tax collection agencies of that county
5 or city for collection and remittance of the tax. Any person
6 required to collect or pay over any tax authorized by this
7 section and who fails to collect or pay over any such tax shall
8 be liable for the full amount of such tax, including any
9 interest or penalties which may be imposed by a county or city
10 of the first class.
11 (d) The county or city and its tax collection agencies are
12 authorized to promulgate and enforce rules and regulations not
13 inconsistent with the provisions of this section relating to any
14 matter or thing pertaining to the collection, administration and
15 enforcement of the provisions of this section.
16 (d.1) This section shall not apply to nonprofit carsharing
17 organizations or services.
18 (e) Definitions.--As used in this section, the following
19 words and phrases shall have the meanings given to them in this
20 subsection:
21 "Nonprofit carsharing organization." An organization,
22 administered without the intent of or concern for monetary
23 profit, which provides an integrated citywide network of
24 neighborhood-based motor vehicles available only to members by
25 reservation on an hourly basis, or in smaller intervals, and at
26 variable rates as part of a mobility enhancement service. These
27 services are designed to complement existing transit and bicycle
28 transportation systems by providing a practical alternative to
29 private motor vehicle ownership, with the goal of reducing
30 overdependency on individually owned motor vehicles.
20080H2409B3521 - 3 -
1 "Rental vehicle" shall mean a private passenger motor vehicle
2 designed to transport fifteen or fewer passengers or a truck,
3 trailer or semitrailer used in the transportation of property
4 other than commercial freight, that is rented without a driver,
5 is part of a fleet of five or more rental vehicles that are used
6 for that purpose and owned or leased by the same person or
7 entity and is rented for a period of twenty-nine or fewer
8 consecutive days, excluding vehicles owned or leased by a non-
9 profit carsharing organization.
10 "Vehicle rental company" shall mean any business entity
11 engaged in the business of renting motor vehicles in this
12 Commonwealth. The term does not include a non-profit carsharing
13 organization.
14 Section 2. This act shall take effect in 60 days.
L9L16SFL/20080H2409B3521 - 4 -