Bill Text: NJ A3335 | 2010-2011 | Regular Session | Introduced
Bill Title: Exempts carsharing rentals from State imposed $5 per day motor vehicle rental fee.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-10-07 - Introduced, Referred to Assembly Appropriations Committee [A3335 Detail]
Download: New_Jersey-2010-A3335-Introduced.html
Sponsored by:
Assemblyman JOHN F. MCKEON
District 27 (Essex)
Assemblyman REED GUSCIORA
District 15 (Mercer)
SYNOPSIS
Exempts carsharing rentals from State imposed $5 per day motor vehicle rental fee.
CURRENT VERSION OF TEXT
As introduced.
An Act exempting carsharing rentals from the State imposed $5 per day motor vehicle rental fee, amending P.L.2002, c.34.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 54 of P.L.2002, c.34 (C.App.A:9-78) is amended to read as follows:
54. a. As used in this section:
"Rental company" means a person engaged in the business of renting motor vehicles.
"Rental motor vehicle" means a passenger automobile, truck or semitrailer that is rented without a driver and used in the transportation of persons or property other than commercial freight.
"Carsharing rental" means a passenger automobile that is rented without a driver for hourly use within, but not beyond, one calendar day.
b. Each rental company doing business in this State shall pay a fee for each rental motor vehicle that the company shall have rented from a location in this State under the terms of a rental agreement for a period of not more than 28 days. The amount of the fee shall be $5 for each day or part thereof that each such vehicle was rented. The fee shall be separately stated to the person to whom the motor vehicle is rented and shall not be included in the receipts subject to the taxes imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
The [director] Director of the Division of Taxation in the Department of the Treasury shall collect and administer the fee; in so doing, the director shall have all the powers granted pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.). The director may, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), make, adopt, amend or repeal such rules and regulations as the director finds necessary to carry out the provisions of this subsection.
c. There is established in the General Fund the New Jersey Domestic Security Account, which shall be a dedicated nonlapsing account. Amounts paid to the State Treasurer from the first $2 of the fee for each day or part thereof that a rental motor vehicle was rented pursuant to subsection b. of this section shall be deposited into the account upon receipt. Moneys in the account, including interest thereon, shall be available exclusively for appropriation to support medical emergency disaster preparedness for bioterrorism, security coverage at nuclear power facilities, State Police salaries related to Statewide security services, and counter-terrorism programs.
d. A carsharing rental is not subject to the fee imposed by subsection b. of this section.
(cf: P.L.2006, c.42, s.1)
2. This act shall take effect immediately. Section 1 shall remain inoperative until 90 days after the date of enactment.
STATEMENT
This bill exempts carsharing rentals from the State imposed $5 per day motor vehicle rental fee. The bill defines carsharing rentals as a passenger automobile that is rented without a driver for hourly use within, but not beyond, one calendar day. The purpose of this bill is to remove an impediment to the use of short-term passenger automobile rentals as an alternative and cost-efficient metropolitan transportation tool.
Increased usage of carsharing rentals, particularly in urban areas, has the potential to reduce the use and ownership of personal automobiles. Consequently, carsharing rentals could have the effect of reducing traffic congestion, fuel consumption and emissions.
However, the State is currently inhibiting the growth of carsharing rentals through the imposition of a $5 fee per day motor vehicle rental fee, which is imposed on the first 28 days of all motor vehicle rentals. In application this means that a one-hour carsharing rental customer could have to pay a $5 State imposed fee for a rental bill that may otherwise be approximately $10.
By exempting carsharing rentals from the State imposed $5 per day motor vehicle rental fee, the State can remove an impediment to the use of carsharing rentals as a convenient and cost-efficient transportation tool.
