Under current law, the sale of an automobile to a person in the business of renting automobiles for a period of less than one year is not taxed; instead, the lease of the vehicle to a consumer is taxed at the rate of 10%. This bill requires a person purchasing an automobile for the purpose of renting the automobile for less than one year to pay a sales and use tax of 5.5%. The lease of the vehicle to a consumer continues to be taxed at 10%.

Statutes affected:
Bill Text LD 1602, SP 639: 36.1752