MOTOR VEHICLE RENTAL TAX

El Paso City Code tit. 3, ch. 3.40

in effect

El Paso City Code § 3.40.010 Definitions.

3.40.010 - Definitions. As used in this chapter, and in accord with Chapter 334 of the Texas Local Government Code, the following terms shall have the following meanings: "Athletic event" means a post season intercollegiate athletic football bowl game that is held annually by the Sun Bowl Association. "Gross rental receipts" means value received or promised as consideration to the owner of a motor vehicle for rental of the vehicle, but does not include; 1. Separately stated charges for insurance; 2. Charges for damages to the motor vehicle occurring during the rental agreement period; 3. Separately stated charges for motor fuel sold by the owner of the motor vehicle; or 4. Discounts. "Motor vehicle" means and includes: 1. A self-propelled vehicle designed to transport persons or property on a public roadway and includes a passenger car, van, station wagon, sports utility vehicle, and truck. 2. The term does not include a: a. Trailer, semitrailer, house trailer, truck having a manufacturer's rating of more than one-half ton, or road-building machine; b. Device moved only by human power; c. Device used exclusively on stationary rails or tracks; or d. Mobile office. "Motor vehicle tax venue project fund" means the account established by a municipality by resolution for the deposit of the tax revenue collected under this chapter. "Place of business of the owner" means an established outlet, office, or location operated by the owner of a motor vehicle or the owner's agent or employee for the purpose of renting motor vehicles and includes any location at which three or more rentals are made during the year. "Rental" means an agreement by the owner of a motor vehicle to authorize for not longer thirty days, the exclusive use of that vehicle to another for consideration. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.020 Tax imposed—Rate.

3.40.020 - Tax imposed—Rate. There is levied a tax upon the rental of a motor vehicle in the city at the rate of five percent of the gross rental receipts of an owner of a rented motor vehicle. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.030 Collection of the tax.

3.40.030 - Collection of the tax. A. The owner of a motor vehicle subject to the tax imposed under this chapter shall collect the tax for the benefit of the city. As provided in Chapter 334 of the Local Government Code, the owner shall add the short-term motor vehicle rental tax imposed by this chapter to the rental charge. B. The amount of the total tax is computed by multiplying the five percent tax rate by the amount of the rental charge. If the product results in a fraction of a cent less than one-half of one cent, the fraction of a cent is not collected, if the fraction of a cent is one-half of one cent or more, the fraction shall be collected as one cent. C. All gross rental receipts of an owner of a motor vehicle from the rental of the motor vehicle are presumed to be subject to the tax imposed by this chapter, except for gross receipts for which the owner has accepted in good faith a properly completed exemption certificate, as set forth under Section 3.40.050 of this chapter. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.040 Consummation of rental.

3.40.040 - Consummation of rental. A rental of a motor vehicle occurs where the transfer of possession of the motor vehicle occurs. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.050 State exemptions applicable.

3.40.050 - State exemptions applicable. The exemptions provided by Subchapter E, Chapter 152, Tax Code, apply to the taxes authorized by this chapter. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.060 Reports and remittances.

3.40.060 - Reports and remittances. On or before the last day of January, April, July, and October, every owner of a motor vehicle required to collect the tax imposed under this chapter shall file a report with the city comptroller showing the gross rental receipts for the immediately preceding quarter, as well as any other information which the city comptroller may reasonably require. Such owner shall, at the item of filing such report, pay over to the city comptroller the amount of taxes required to be collected for the rental of motor vehicles during the preceding quarter. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.070 Records.

3.40.070 - Records. A. The owner of a motor vehicle used for rental purposes shall keep for four years records and supporting documents containing the following information on the amount of: 1. Gross rental receipts received from the rental of the motor vehicle; and 2. The tax imposed under this chapter and paid to the city comptroller on each motor vehicle used for rental purposes by the owner. B. Mileage records are not required. C. The city comptroller upon reasonable notice shall have access to books and records necessary to enable him to determine the correctness of any report filed as required by this chapter and the amount of taxes due under the provisions of this chapter. D. An offense under subsection A of this section is a misdemeanor punishable by a fine of not less than twenty-five dollars or more than five hundred dollars. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.080 Motor Vehicle Tax Venue Project Fund.

3.40.080 - Motor Vehicle Tax Venue Project Fund. By this ordinance, the city shall establish a fund known as the motor vehicle tax venue project fund. The city comptroller shall deposit into this venue project fund: A. The proceeds of the motor vehicle rental tax paid by the owners; and B. Any other money required by law to be deposited into the fund. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.090 Use of proceeds.

3.40.090 - Use of proceeds. The proceeds of the tax levied in this chapter may be used to: A. Pay the costs of collecting the tax; B. Operate one or more athletic events in the city; and C. Pay costs associated with an athletic event in the municipality, including payment of the costs of planning, acquiring, establishing, developing, advertising, promoting, conducting, sponsoring, or otherwise supporting the athletic event. These costs shall include payments to the colleges and universities participating in the athletic event. The maximum amount for such payments to participating universities and colleges in the athletic event which may be disbursed to the association in each year, shall be the minimum amount required to pay colleges and universities participating in the athletic event under either the association's then existing conference participation agreements relating to the athletic event or the association's agreements with the colleges and universities agreeing to participate in the athletic event. The tax collected under this chapter shall not be considered gross receipts from the athletic event. (Ord. 13762 § 1, 1998: Ord. 13431 (part), 1997)

El Paso City Code § 3.40.100 Distribution of Motor Vehicle Rental Project Venue Funds.

3.40.100 - Distribution of Motor Vehicle Rental Project Venue Funds. The city may enter into a written agreement with the producer of an athletic event for the distribution of motor vehicle rental project venue funds for a use consistent with this chapter. Such agreement shall be in a form acceptable to the city attorney. (Ord. 13431 (part), 1997)

El Paso City Code § 3.40.110 Violation—Penalty.

3.40.110 - Violation—Penalty. Failure to file a report as required in this chapter or failure to pay over to the city comptroller the tax as imposed by this chapter when the report or payment is due, shall be deemed a misdemeanor and shall be punishable by a fine not to exceed five hundred dollars. In addition to such penalty, any person who fails to file a report as required by this chapter or fails to pay over to the city comptroller the tax as imposed by this chapter when the report or payment is due, shall forfeit five percent of the amount due as a penalty, and after the first thirty days he shall forfeit an additional five percent of such tax. Delinquent taxes shall draw interest at the rate of ten percent per year beginning sixty days from the date due. All penalties provided under this chapter shall be cumulative. (Ord. 13431 (part), 1997)

Source: City of El Paso, City Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/el_paso/codes/code_of_ordinances?nodeId=TIT3REFI_CH3.40MOVERETAFetched: 10/28/2026