HB15 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

Second Special Session 2015

Title

Motor vehicles, add'l rental tax, Sec. 40-12-222 am'd.

Summary

HB15 would raise Alabama's motor vehicle rental tax from 1.5% to 2%.

What This Bill Does

It amends the motor vehicle rental tax to increase the rate for leasing automotive vehicles and related trailers from 1.5% to 2% of gross lease proceeds. Lessors may pass the tax to lessees by including it in the lease price, and those amounts remain part of the gross proceeds taxed. The bill preserves exemptions for leases to the state, counties, municipalities, and public corporations, and it takes effect November 1, 2015.

Who It Affects

• Lessor businesses that lease or rent motor vehicles and related trailers, who would see the higher tax rate applied to their leases.
• People or organizations who rent motor vehicles (lessees), who may see higher charges if the tax is passed through by the lessor.

Key Provisions

• Increases the motor vehicle rental tax rate on automotive vehicles and related trailers from 1.5% to 2% by amending Section 40-12-222.
• Allows tax to be passed through to lessees and maintains exemptions for leases to the State, counties, municipalities, and public corporations; becomes effective November 1, 2015.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles