Car Rental Still a Potent Tax Stream
The debt to pay for constructing a stadium and convention center might actually be paid off early.
The mix of Marion County and suburban tax collections from auto rental taxes, food and beverage, and more that pay the debt on constructing Indiana’s Lucas Oil Stadium and expanding the Indiana Convention Center are beating state projections.
Once the projects are paid off, the legislation that created the tax increases calls for them to expire.
Tax collections have held steadier than overall state revenue because food and beverage, innkeepers and auto rental taxes in Central Indiana have been more resilient during the economic recession than the statewide income and sales taxes that make up a majority of the state budget.
Before state financial officials drew up the stadium and convention financial projections in 2005, they reviewed 20 years of history on the Marion County food and beverage, innkeepers and auto rental taxes. Historically, those tax revenues had increased by an average of 3 percent to 4 percent per year, but state officials contemplated only a 1 percent annual increase in their projections.
But the state's projections for the suburban taxes, license plate proceeds and sports district turned out to be far less than what those three revenue streams have produced.
That additional money is being used to pay down the debt early as required by state law.
Ryan Kitchell, director of the state's Office of Management and Budget said, "If this keeps up, we could be in the rare position of a state that's actually paying something off early."
More Rental Operations
Is It Time to Rethink Rental Categories?
As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.
Read More →
Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental
Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)
Read More →
U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%
Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.
Read More →
Sixt Revenue Tops $2.4 Billion in First Half of 2026
Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.
Read More →
In Memoriam: Bobby Klyce, Avis Licensee Legend
The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.
Read More →How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]
A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.
Read More →
Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027
Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.
Read More →
Avis Cuts Fleet as Summer Demand Trails Expectations
Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.
Read More →
Why Bookings Are Only the Start of the Rental Day
A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.
Read More →
This Is the Oldest Car Rental Advertisement You’ll Ever See
This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.
Read More →
