Voters to get final say on 3 percent car rental tax in bill passed by Senate

Parishes would get entire amount

BATON ROUGE -- The Senate has approved elections for parishes that want to keep an expiring 3 percent excise tax on vehicle rentals. By a vote of 25-8 the Senate late Monday amended and then passed Senate Bill 350 by Sen. Edwin Murray, D-New Orleans, that shifts the state 3 percent tax to local governments if local voters approve.

Sen. Edwin Murray, D-New Orleans

The 3 percent tax -- 2.5 percent to the state and .5 percent to parishes -- is set to expire June 30 because the administration of Gov. Bobby Jindal did not ask lawmakers to extend it. The tax has been in place for 22 years.

Instead of keeping just the .5 percent as parishes now get, Murray amended his bill to give them the entire 3 percent. The tax generates between $5 million and $6 million a year.

Murray has a similar bill in the Legislature that allows Orleans and Jefferson to keep the entire 3 percent tax, but his Senate Bill 350 would extend that to other parishes of the state with voter approval. Murray amended the bill to exempt Jefferson and Orleans from the statewide bill because the local tax in his companion measure is already at 3 percent for the two parishes.

Some said that could allow the Jefferson and Orleans to impose up to a 6 percent tax on vehicle rentals which Murray said was not his intention. Murray said the bill allows local governments to decide how they want to use the money.

Ed Anderson can be reached at eanderson@timespicayune.com or 225.342.5810.