Section 45-51-243.02 Levy of Tax; Rates; Applicability; Disposition of Funds.

(a) The county commission is authorized, by resolution duly adopted, to levy, in addition to all other taxes now imposed or authorized by law, and to collect as herein provided, a privilege, license, or excise tax, herein called a rental tax, on the leasing or renting of tangible personal property within the county. Though required to be collected by the lessor or vendor, the rental tax shall conclusively be presumed to be a direct tax on the lessee or renter, precollected for the purpose of convenience only. Each individual transaction involving the lease or rental of tangible personal property to a lessee or a renter shall constitute the basis for computing the rental tax. As such, the rental tax shall not be construed as a tax on the gross receipts or gross proceeds of a lessor or a vendor. (b) The rental tax may be imposed at the following rates: (1) In each transaction involving the leasing or renting of any automotive vehicle or truck trailer, semi-trailer, or house trailer, up to three quarters of one percent of the rental revenue paid by the lessee or renter of the automotive vehicle, truck trailer, semi-trailer, or house trailer; provided, however, that the leasing or renting of rental passenger vehicles and rental trucks shall be exempt from the rental tax. (2) In all other transactions subject to the tax, up to two percent of the rental revenue paid by the lessee or renter in each transaction subject to the tax. (c) The rate of taxation shall be set by a resolution of the county commission within the limits prescribed in this section. (d) The rental tax shall not apply to any leasing or rental in which the state, or any municipality or county in the state, or any public corporation organized under the laws of the state, is the lessee or vendee or the lessor or vendor. (e) Subject to subsections (g) and (h), when a lessor or vendor in the county (1) leases tangible personal property to a lessee or renter outside the county, (2) the property is to be used outside the county, and (3) the lessor’s or vendor’s records in the county show that the property is so leased to be used outside the county, the transaction is not subject to the rental tax. (f) Subject to subsections (g) and (h), when a lessor or vendor (1) is located outside of the county, (2) leases or rents tangible personal property to a lessee or renter within the county, and (3) the property so leased or rented is to be used in the county, the transaction is subject to the rental tax. (g) Except for rental passenger vehicles and rental trucks, the leasing or renting of any automotive vehicle, truck trailer, semi-trailer, or house trailer within the county is subject to the rental tax, although the automotive vehicle, truck trailer, semi-trailer, or house trailer may be returned to the lessor or vendor outside the county. Where any automotive vehicle, truck trailer, semi-trailer, or house trailer is leased outside the county and turned in to the lessor or vendor in the county, the transaction is not subject to the rental tax. (h) Except for rental trucks, when a lessor or vendor leases or rents a truck, truck trailer, or semi-trailer to a motor carrier in the county, the transaction is subject to the rental tax, although the truck, truck trailer, or semi-trailer may occasionally travel outside of the county. Where the lessor or vendor leases a truck, truck trailer, or semi-trailer to a motor carrier outside the county, the transaction is not subject to the rental tax, although the truck, truck trailer, or semi-trailer may occasionally travel in the county. (i) The rental tax received or collected shall be deposited into the county general fund to be expended as determined by the county commission.