SENATE BILL NO. 211

INTRODUCED BY D. MAHLUM

A BILL FOR AN ACT ENTITLED: "AN ACT IMPOSING A 6 PERCENT SURCHARGE ON THE RENTAL BASE PRICE OF CERTAIN RENTAL VEHICLES; PROVIDING A REIMBURSEMENT FROM THE SURCHARGE COLLECTED FOR 50 PERCENT OF THE TAXES AND FEES PAID IN MONTANA ON RENTAL VEHICLES; PROVIDING FOR THE DISTRIBUTION OF EXCESS REVENUE; SUBMITTING THE IMPOSITION OF THE SURCHARGE TO THE ELECTORATE; PROVIDING CONTINGENT VOIDNESS PROVISIONS; AND PROVIDING A DELAYED EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Rental vehicle surcharge -- exception -- reimbursement and distribution. (1) (a) Except as provided in subsection (1)(b), there is imposed a surcharge on rental vehicles. The surcharge is 6% of the rental base price, exclusive of gas and insurance, as stated in the rental contract. The surcharge must be stated in the rental contract and collected in accordance with the terms of the contract. [The proceeds from the surcharge are to be used for providing a reimbursement for 50% of the taxes and fees paid in Montana on rental vehicles at the time of registration and for distribution as provided in subsection (2).

(b) The surcharge imposed by this section does not apply to the rental base price for rental vehicles rented pursuant to a contract for insurance.

(2) After the reimbursement for taxes and fees referred to in subsection (1), the balance of the surcharge collected in the previous year must be distributed as follows:

(a) 80% to the Montana heritage preservation and development account, as provided for in 22-3-1004, for the purposes stated in that section. Of the total amount that would be distributed under this subsection (2)(a), up to $200,000 a year must first be transferred to an account in the state special revenue fund to the credit of the department of commerce for the Montana main street program.

(b) 10% to be distributed equally to the general fund of all counties; and

(c) 10% to the state general fund.]

NEW SECTION. Section 2. Submission to electorate. This act shall be submitted to the qualified electors of Montana at the tax election to be held in 1999 by printing on the ballot the full title of this act and the following:

SHALL A NEW 6 PERCENT SURCHARGE TAX ON RENTAL VEHICLES BE IMPOSED IN THE FOLLOWING MANNER?

[]	FOR imposing a 6% surcharge on the rental base price of rental vehicles for reimbursement to rental car companies and for distribution for various purposes.

[]	AGAINST imposing a 6% surcharge on the rental base price of rental vehicles for reimbursement to rental car companies and for distribution for various purposes.

NEW SECTION. Section 3. Contingent voidness. (1) If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then [this act] is void.

(2) If LC 307 is not passed and approved, then [this act] is void.

NEW SECTION. Section 4. Effective date. If approved by the electorate, [this act] is effective January 1, 2000.

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