Sec. 7. (a) The legislative body of the most populous city in the county may adopt an ordinance to impose an excise tax, known as the county supplemental auto rental excise tax, upon the rental of passenger motor vehicles in the county for periods of less than thirty (30) days. The ordinance must specify that the tax expires December 31, 2036.

     (b) Except as provided in subsection (c), the county supplemental auto rental excise tax that may be imposed upon the rental of a passenger motor vehicle is two percent (2%) of the gross retail income received by the retail merchant for the rental.

     (c) The county supplemental auto rental excise tax does not apply to the sharing of passenger motor vehicles through a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) in the county unless the legislative body of the most populous city in the county adopts an ordinance to impose the tax as provided in this section. The legislative body of the most populous city in the county may adopt an ordinance to impose the county supplemental auto rental excise tax on the sharing of passenger motor vehicles registered in the county for purposes of IC 6-6-5 through a peer to peer vehicle sharing program. The amount of the tax is equal to:

(1) the gross retail income received by the peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) for the sharing of the passenger motor vehicle; multiplied by

(2) one percent (1%).

The ordinance must specify that the ordinance expires December 31, 2036.

     (d) If the city legislative body adopts an ordinance under subsection (a) or (c), the city legislative body shall immediately send a certified copy of the ordinance to the commissioner of the department.

     (e) If the city legislative body adopts an ordinance under subsection (a) or (c) before June 1 of a year, the county supplemental auto rental excise tax applies to auto rentals after June 30 of the year in which the ordinance is adopted. If the city legislative body adopts an ordinance under subsection (a) or (c) on or after June 1 of a year, the county supplemental auto rental excise tax applies to auto rentals after the last day of the month in which the ordinance is adopted.

As added by P.L.214-2005, SEC.22. Amended by P.L.108-2019, SEC.126.