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GENERAL ASSEMBLY OF NORTH' CAROLINA SESSION 1999 SENATE BILL 1076 RATIFIED BILL AN ACT TO REPEAL THE PROPERTY TAX ON CERTAJaN VEHICLES LEASED OR RENTED UNDER RETAIl, SHORT-TERM LEASES OR RENTALS AND TO REPLACE THE TAX REVENUE WITH A LOCAL TAX ON GROSS RECEIPTS DERIVED FROM RETAIL SHORT-TERM LEASES OR RENTALS. The General Assembly of North Carolina enacts: Section 1. G.S. 105-275 is amended by adding a new subdivision to read: "(41)' A. vehicle that is offered at retail for short-term lease or rental and is owned or lea~ed by an entity engaged in the bu. siness of.leasing or renting vehicles to the.. general public for short-term 'lease or rental. For the purposes of this subdivision, the .term 'short-term lease or rental' shall have the same meaning as in G.S. 105-187.1. A gross receipts tax as set forth by G.S. 153A-156 and G.S. 160A- 215.1 is substituted for and replaces the ad valorem tax previously levied on these vehicles." Section 2. Chapter 153A of the General Statutes is amended bY adding a new section to read: "§ 153A-156. Gross receipts tax On short-term leases or renta, ls. (a) As a substitute for and in replacement of the ad valorem tax, which is excluded by G.S. 105-275(41), a county may levy_ a gross receipts tax on the gross receipts from the sh0rt-term lease or rental 0f vehicles at retail tO the general public. -The tax rate shall not exceed one ,and one-half percent (1.5%) of the gross receipt, s. from such short-term leases or rentals. (b) If a county enacts the substitute and replacement gross receipts tax pursuant to this section, any' entity, required to collect the tax shall include a provision in each retail short-term lease..orrental agreement noting that the percentage amount enacted by the county of the total lease or rental price, excluding sales tax, is being charred as a tax on gross receiots. For purooses of this section, the transaction giving rise to the tax shall be deeme~l to have o6curred at the location of the entity from which the customer takes detiverv of.the vehicle. The tax shall be collected at the time of lease or rental and placed in a segregated account until remitted to the county. (c) The collection, and rise of taxes under this section are not subiect to sales tax and are not included in the gross receiots of the entity, The oroceeds collected under this section, belong to the county and are not subiect to creditor liens against the entftw, (d) A tax' levied under this section shall be collected by. ,the county but otherwise administered in the same manner as the tax levied under G~S. 105-164..4(a)(2)'. (e) The following definitions apply in this section: . 1/~ Vehicle. - Any of the following: