The Fayetteville City Council is considering a 1 percent tax on car rental companies’, raising bus fares by 25 percent and doubling the $5-per-vehicle tax, The Fayetteville Observer reports.

Councilman Keith Bates, is levying a 1 percent tax on car rental companies’ gross receipts. That would generate $277,000 a year.

“It will take some of the burden off of property owners,” he said.

Tracy Mauro, manager of Carolina Car Rentals in Fayetteville, said the car rental industry is taxed enough already. A car rental bill is taxed at 18 percent, she said, from a combination of federal, state and county taxes.

“We are obviously concerned about passing these costs onto our customers, especially when you consider a lot of people who rent are visiting,” she said. “They are paying for services they will never benefit from.”

The city could not assess car rental companies without legislative approval.

According to The Fayetteville Observer, Councilman Robert Massey said some type of tax or fee increase might be inevitable. “You can’t improve any services without there being a cost factor involved,” he said.