Marion County City Council Advances Car Rental Tax Increase in Indiana

A proposal to increase the County Supplemental Auto Rental Excise Tax from 4% to 6% passed through committee in the Marion County City Council in Indiana on Jan. 15. The Administration and Finance Committee voted 7-1 to advance the car rental tax.

The proposal, which was first introduced to the committee Jan. 9, is set for a final vote by the council on Jan. 28.

Several car rental industry representatives who attended the Jan. 15 meeting said the tax increase would be a burden on renters who already pay a 15% tax. The increase would bring the total taxon rental transactions to 17%. Customers currently pay a 4% state rental tax, 7% state sales tax and 4% local rental tax.

First-year proceeds from the car rental tax, along with a proposed admission tax increase for the Lucas Oil Stadium, are estimated to be $6.7 million and would go to Indianapolis public safety agencies. After the first year, the public safety agencies will receive 25% of the revenue.


Indianapolis was among GBTA's list of cities with the "Highest Total Tax Burden" for travelers. Read more here.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Car Rental’s Call to Action on Autonomous Vehicles

The car rental industry has built-in advantages to support a world with driverless cars, but it needs to take the next step in partnering with autonomous vehicle stakeholders.

Job Finder: Access Top Talent. Fill Key Positions.