Automobile Rental Tax

Home : Business : Automobile Rental Tax

Expiration of state Automobile Rental Tax

Effective July 1, 2012, the Automobile Rental Tax imposed under Louisiana Revised Statute 47:551 will expire. You will no longer be required to collect three percent tax on the gross proceeds derived from the lease or rental of an automobile. This tax has applied to all automobile rental contracts whose rental periods were less than twenty-nine calendar days in length. State sales tax at the rate of four percent must continue to be collected and remitted to the Louisiana Department of Revenue on these transactions.

Automobile Rental Taxes collected in June 2012 must be reported electronically and remitted to the Louisiana Department of Revenue no later than July 20, 2012. If, for any reason, you continue to collect the Automobile Rental Tax for any duration of time on or after July 1, 2012, you must file and remit these taxes collected for the July 2012 period as provided under Louisiana Revised Statute 47:304(D).

If you have questions concerning the expiration of the Automobile Rental Tax, please contact the Special Programs Division at (225) 219-7462 or by email at sales.inquiries@la.gov.