Section 2398 - Authorization of vehicle rental tax by counties of the first class(a) Notwithstanding any provision of this act or any law to the contrary, each county of the first class is hereby authorized to impose an excise tax on the rental of a rental vehicle in that county. If the county is coterminous with a city of the first class, imposition of the tax in that county, if any, shall be by that city. The tax may be imposed on any person renting a rental vehicle at a rate of up to two per centum of the purchase price of the rental. For purposes of this section, the situs of the rental of the vehicle is the place where the renter takes possession of the rental vehicle.(b) All of the proceeds of the vehicle rental tax shall be dedicated solely to the payment of the costs of capital projects, which costs may include, without limitation, lease payments or service agreements with authorities for capital projects and debt service on bonds issued for capital projects. The Commonwealth does hereby pledge to and agree with any person, firm or corporation subscribing to or acquiring bonds issued by the county, city or an authority to finance a capital project for which the tax was dedicated that the Commonwealth itself will not repeal this authorization or reduce the rate of tax authorized under this section until all such bonds, together with the interest thereon, have been paid or provision for such payment shall have been made, nor shall a county or city of the first class imposing such tax and dedicating such tax as provided in this section be permitted to repeal such tax or to reduce the rate of such tax or to revoke such dedication until all of such bonds, together with interest thereon, shall have been paid or provision for such payment shall have been made. Payments by a county or a city of the first class under any lease or service agreement as hereinabove described shall not constitute debt of the Commonwealth or of a county or city of the first class.(c) The vehicle rental tax shall be collected by each vehicle rental company in the county or city imposing the tax. The tax shall be collected at the time the rental vehicle is rented by that vehicle rental company and shall be remitted by the vehicle rental company to the county or city that imposed the tax in accordance with rules and regulations established by the county or city or the tax collection agencies of that county or city for collection and remittance of the tax. Any person required to collect or pay over any tax authorized by this section and who fails to collect or pay over any such tax shall be liable for the full amount of such tax, including any interest or penalties which may be imposed by a county or city of the first class.(d) The county or city and its tax collection agencies are authorized to promulgate and enforce rules and regulations not inconsistent with the provisions of this section relating to any matter or thing pertaining to the collection, administration and enforcement of the provisions of this section.(e) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Rental vehicle" shall mean a private passenger motor vehicle designed to transport fifteen or fewer passengers or a truck, trailer or semitrailer used in the transportation of property other than commercial freight, that is rented without a driver, is part of a fleet of five or more rental vehicles that are used for that purpose and owned or leased by the same person or entity and is rented for a period of twenty-nine or fewer consecutive days.
"Vehicle rental company" shall mean any business entity engaged in the business of renting motor vehicles in this Commonwealth.
1955, August 9, P.L. 323, No. 130, § 2398, added 1999, June 25, P.L. 182, No. 25, § 4, imd. effective.