Suwanee adopts rental vehicle excise tax

The Suwanee City Council voted recently to adopt a 3 percent rental vehicle excise tax. Courtesy Enterprise
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The Suwanee City Council voted recently to adopt a 3 percent rental vehicle excise tax. Courtesy Enterprise

The Suwanee City Council voted recently to adopt a rental vehicle excise tax. State law permits municipalities to levy a 3 percent excise tax on vehicle rentals.

Gwinnett municipalities that currently assess a rental motor vehicle excise tax include Buford, Duluth, Lawrenceville, Norcross, and Snellville. Two vehicle rental companies currently operate in Suwanee: Enterprise and Hertz. Based on data submitted for their 2018 occupation tax license, the two companies combined brought in revenue of approximately $3.4 million in 2017. Using these figures, Suwanee anticipates the city could receive approximately $100,000 in tax revenue annually from the new tax.

The municipalities and counties that collect this tax tend to administer it similarly to the hotel/motel excise tax. The vehicle rental companies submit a form once a month that indicates their total rent received for the preceding month. They calculate the total tax due and submit payment directly to the city making administrative costs low to collect the funds.

The new tax will take effect Jan. 1.