HomeMy WebLinkAbout94-860 08-23-1994RESOLUTION NO. 94 -860
A RESOLUTION REQUESTING THAT THE TEXAS
MUNICIPAL LEAGUE SUPPORT THE AMENDMENT OF THE
"MOTOR VEHICLE RENTAL TAX" TO PROVIDE FOR
LOCAL SALES TAX ASSESSMENTS ON MOTOR VEHICLE
RENTALS.
WHEREAS, sections 152.026 and 152.045 of Vernon's Civil Statutes
Annotated, Tax Volume 2, enables the State of Texas to
assess a "Motor Vehicle Rental Tax" in lieu of a
traditional state /county /local sales tax; and
WHEREAS, the State of Texas projects total receipts from this tax
in excess of $94.7 million for the 1993 -94 fiscal year
(September 1 - August 31); and
WHEREAS,
WHEREAS,
the State of Texas retains all proceeds from this Motor
Vehicle Rental Tax; and
local jurisdictions currently also lack the local option
election ability to add a local tax to the state Motor
Vehicle Rental Tax; and
WHEREAS, this policy deprives Texas local jurisdictions of
millions of dollars of additional sales tax revenue,
annually, from this revenue source; and
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
only one surrounding state, Oklahoma, has a similar
rental tax policy, which deprives local jurisdictions of
needed tax revenues (Louisiana, Arkansas, New Mexico,
Kansas, and Colorado all allow for local tax assessments
on motor vehicle rentals); and
such rental tax revenues are primarily derived from out -
of -state business travelers and tourists; and
a 2% increase in the Motor Vehicle Rental Tax would not
unduly encumber local citizens, nor would it diminish the
competitiveness of the State of Texas, or of Texas
cities; and
such an increase in the Motor Vehicle Rental Tax would
immediately provide Texas cities with millions of dollars
in additional sales tax revenue, annually, without
affecting annual receipts to the State of Texas
attributable to the Tax;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City
of Euless, Texas, requests that the Texas Municipal League to
support the amendment of the state "Motor Vehicle Rental Tax" to
provide Texas cities with local option election abilities to add
local taxes of 2% to the Motor Vehicle Rental Tax; and
BE IT FURTHER RESOLVED, that the Euless City Council encourages
other Texas local jurisdictions to likewise request the Texas
Municipal League to support the amendment of the state "Motor
Vehicle Rental Tax" to provide for local sales tax assessments on
motor vehicle rentals; and
BE IT FURTHER RESOLVED, that the Euless City Council instructs the
City Secretary to forward this resolution to the Texas Municipal
League immediately from and after its passage.
APPROVED AND ADOPTED on this 23rd day of Angnst , 19 94 .
APPROVED:
Ya. o_tafc
Mary Li11 Saleh, Mayor
ATTEST:
Susan Crim, C City Secretary
RESOLUTION NO. 94 -860 PAGE 2 OF 2