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.