Ch. 125

1995 LAWS OF MARYLAND

CHAPTER 125
(Senate Bill 113)

AN ACT concerning

Sales and Use Tax - Short-Term Vehicle Rentals

FOR the purpose of repealing extending a termination provision applicable to certain
provisions relating to the sales and use taxation of short-term rentals of passenger
cars, multipurpose vehicles, and trucks; requiring the Comptroller's office to continue
to monitor the effects of certain provisions of law and the revenues generated by certain
taxes imposed on the short-term vehicle rental industry; and making certain provisions
relating to taxation of short-term vehicle rentals permanent.

BY repealing and reenacting, with amendments,

Chapter 254 of the Acts of the General Assembly of 1993
Section 3

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Chapter 254 of the Acts of 1993

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 1993. [It shall remain effective for a period of 2 6 years and 1 month and, at the
end of June 30, 1995 1999, with no further action required by the General Assembly, this
Act shall be abrogated and of no further force and effect.] The increased sales and use
tax rate for short-term rentals of passenger cars and multipurpose passenger vehicles
provided under this Act shall be applicable to all charges for rental agreements entered
into on or after June 1, 1993 [and before the termination of this Act]. The altered
definition of taxable price for short-term vehicle rentals and the sales and use tax rate
provided under this Act shall be applicable to all rental agreements entered into on or
after June 1, 1993 [and before the termination of this Act]. The credit for the vehicle
excise tax on purchases of passenger cars and multipurpose vehicles used for short-term
rentals provided under this Act shall apply to all vehicles titled on or after May 1, 1993
[and before the termination of this Act], provided that these credits may not be used to
offset sales tax remittances until after July 1, 1993.

SECTION 2. AND BE IT FURTHER ENACTED, That the Comptroller's office shall
continue to monitor the effects of Chapter 254 of the Acts of 1993 and the revenues generated
by the taxes imposed by the State of Maryland on the short-term vehicle rental industry. The
Department of Fiscal Services shall review these effects and shall be prepared to brief the fiscal
committees or other committees of the General Assemble on request.

SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 1995.

Approved May 9, 1995.

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