Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Taxation committee hears bill to end 3.5% vehicle rental excise tax and subject rental fleets to property tax
Summary
Committee heard House Bill 2154, which would discontinue the 3.5% excise tax on short-term vehicle rentals beginning July 1, 2025, and would subject rental-car company fleets to property tax; state revenue officials said local impacts are uncertain because companies can register vehicles out of state.
The House Committee on Taxation heard House Bill 2154, which would discontinue a 3.5% excise tax on vehicle rentals lasting less than 20 days and, beginning July 1, 2025, subject rental vehicles owned by car rental companies to property tax.
Adam, the reviser, told the committee the bill “would discontinue the excise tax that is currently imposed on the rental or lease of vehicles…commencing 07/01/2025, the 3.5% excise tax…would no longer be imposed.” He said the change would remove the current special property tax exemption that applies to rental fleets.
Kathleen Smith of the Department of Revenue said the fiscal effect would fall to local governments but could not be…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
