reprinted from:

Car rental tax has few friends in the industry
 

By Laura Ingram, Staff Writer
Copyright 1996 Atlanta Journal-Constitution
Article date: July 16, 1996
 

The first payment for a 3 percent Marietta excise tax on car rentals is due in six days, and so far, city officials have heard few complaints from car rental agencies. But it doesn't mean the companies are happy with Marietta's being the fifth metro city to
impose such a levy.

"Anything that raises prices to your customers is not good because we're trying to offer the lowest prices. You can put me on the opposing side," said David Mizelle, owner of U-Save Auto Rental.

"They tend to price you out of a competitive level. This industry is so competitive that it's already difficult to make a profit," said Jan Armstrong, executive vice president of American Car Rental Association, who has seen this type of tax throughout the country - in San Francisco, Philadelphia, Orlando and Cleveland.

Rental car agencies pay the 5 percent county sales tax, but do not have other surcharges, as hotels and motels do. City officials think the tax, adopted in May, will raise about $250,000 annually.

Where the money goes is another reason the rental car agencies oppose the tax. The recent state law was passed so that Atlanta and College Park could pay off $58 million in repairs to streets and infrastructure around the new basketball area for the Atlanta Hawks. However, any city, including Marietta, Chamblee and Hapeville so far, can use the tax for special projects.

Marietta will use the money to renovate the antebellum Brumby Hall on Powder Springs Street adjacent to the new city-owned Marietta Conference Center & Resort.

"There's really no correlation to travel. It's obviously for the local community," said Lauren Kelly, a Hertz Corp. representative.

Last year, about 20 rental car agencies in Marietta brought in about $16 million in gross receipts.

"We're just guesstimating from $250,000 to $300,000 annually. But we may be out in left field," said city Finance Director Larry McHaney.
 

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