The bill proposes the implementation of a county rental tax specifically for Elmore County, set to take effect on September 1, 2025. This tax will be levied on individuals leasing or renting tangible personal property, with the Revenue Commissioner responsible for calculating the tax rates based on specified formulas. The rates will differ for incorporated and unincorporated areas of the county, with the incorporated areas having a maximum rate of nine and one-half percent minus applicable state and municipal rates, while unincorporated areas will have a minimum rate of five and one-half percent. The bill also includes provisions for recalculating the tax rates in response to changes in the referenced rates and mandates that the county commission certify these rates.

The proceeds from the rental tax will be allocated to the Enhance Elmore Fund, with 90% designated for infrastructure and 10% for economic development. Additionally, the bill exempts the rental or lease of motor vehicles that require registration under existing law from this tax. The county commission will oversee the collection and administration of the tax, ensuring compliance with the established guidelines. The act is set to become effective on June 1, 2025, following its passage in both the House and Senate.

Statutes affected:
Introduced: 40-12-222
Enrolled: 40-12-222