A proposed tax on car rental transactions was taken off the table by Gainesville City Council in Georgia, according to Gainesville Times. The state of Georgia allows for up to a 3% tax on the car rental industry.

The council cited at a work session last week that the proposed tax would’ve generated approximately $38,000 annually, which wouldn’t be worth the extra paperwork and time spent regulating the excise tax. One councilwoman said that city staff is already “overworked.”

The city’s administrative services director was advised to keep watch of the rental businesses in the city, and should demand increase, the city council might reconsider drafting an ordinance imposing a tax on the rental car companies.

For the full article from Gainesville Times, click on the URL: http://www.gainesvilletimes.com/section/6/article/63556/

At the federal level, “End Discriminatory State Taxes for Automobile Renters Act of 2011,” or H.R. 2469, aims at preventing cities, counties and states from creating car rental excise taxes. For the most recent report on the bill, click here.