Motor Vehicle Rental Taxes

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Motor Vehicle Rental Tax is charged on the purchase price of leases or rentals of motor vehicles not exceeding 30 days that are subject to Sales and Use Taxes. 

Depending upon location the following vehicle types can have the tax assessed.

The following vehicle types do not qualify for this tax. 

  • Snowmobile
  • Watercraft
  • Trailer

Counties may adopt this tax to support tourism, recreation, cultural, convention or airport facilities within their jurisdiction. It is assessed in addition to sales and use taxes on short-term leases or rentals of motor vehicles, off-highway vehicles, and recreational vehicles.

Exemptions and Adjustments

The following rentals or leases of motor vehicles are exempt from this tax:

  • Those exempt from sales and use taxes
  • As part of a warranty or insurance agreement for a vehicle repair
  • Motor vehicles over 12,001 pounds
  • Moving vans

Pub 25, Exemptions Section

To apply for a sales-related tax account, use our Taxpayer Access Point.

Important: When applying, you must first select Sales and Use Tax to proceed.

For details on how to file, please review the filing instructions.

Filing and Payment Frequency

Due dates for sales and related taxes are based on the previous year’s sales tax liability, as determined by the Annual Sales Tax Liability Table.

    Sales and related tax returns are due the last day of the month after the filing period. For example, returns for annual filers are due January 31. If a due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.

    New businesses estimate the amount of sales and use tax liability when applying for a license and are assigned a filing status. The Tax Commission reviews accounts annually and notifies businesses in writing if the filing status changes.

    For instruction on how to file please see filing instructions.

      Forms and Publications

      TC-62L through TAP
      TC-62L; must be filed electronically through Taxpayer Access Point (TAP)
      Pub 25

      Revenue

      Used by the county that imposed the tax

        Sales and Use Tax General Information is in Publication 25