Georgia CommonsSenate · Introduced · 2025-2026 Regular Session
SB 522: Excise Taxes on Rental Motor Vehicles; fee on rental motor vehicles; provide
Last action February 19, 2026 · Senate Read and Referred
A Georgia Senate bill would add a new $5-per-day fee on rental car and truck rentals statewide starting July 1, 2026, with at least 20 percent of the money intended for tourism promotion.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Introduced version, the latest the General Assembly's website lists.
In plain language
Georgia already taxes rental motor vehicles under a separate part of state law. This bill adds a new part to that law creating an additional flat fee of $5.00 per calendar day on rental or leased motor vehicles, charged to the customer by the rental company. The fee would not apply to a 'temporary replacement motor vehicle,' defined as a vehicle rented while a person's own vehicle is out of service due to breakdown, repair, damage, or loss. Rental companies would collect the fee at the time of payment and must send the money collected each month to the Georgia Department of Revenue by the 15th of the following month. The bill directs the state revenue commissioner to create compliance forms and issue any needed rules. It also states the General Assembly's intent, subject to future state funding decisions, that at least 20 percent of the fees collected go toward tourism purposes in Georgia. The fee would start July 1, 2026, and would not affect existing rental contracts.
What the bill does
- Creates a new $5.00 per day fee on rental or leased motor vehicles in Georgia, charged to customers starting July 1, 2026.
- Exempts 'temporary replacement motor vehicles,' meaning cars rented while a customer's own vehicle is being repaired or replaced after loss.
- Requires rental motor vehicle companies to collect the fee at payment and remit it monthly to the Georgia Department of Revenue by the 15th.
- Directs the state revenue commissioner to create forms and rules to help rental companies comply with the new fee.
- States that at least 20 percent of the fee revenue is intended for tourism purposes, subject to future state funding decisions.
- Protects existing rental contracts from being affected by the new fee requirement.
Who it affects
Rental car and truck companies operating in Georgia, which must collect and remit the new fee; everyday Georgians and visitors who rent vehicles for personal or business use; and the Georgia Department of Revenue, which processes the collected fees and oversees compliance.
Why it matters
Anyone renting a car or truck in Georgia after July 1, 2026 would pay an extra $5.00 for each day of the rental, adding to the cost of travel and errands that require a rental vehicle. The added revenue is meant, in part, to help fund the state's tourism efforts, though that funding depends on future legislative appropriations.
Key provisions
- Section 1 adds a new Part 2 to Article 5, Chapter 13, Title 48 of Georgia's tax code, alongside the existing rental vehicle excise tax provisions, now labeled Part 1.
- New Code Section 48-13-100(a) defines 'temporary replacement motor vehicle' as a vehicle rented while a person's own vehicle is unavailable due to breakdown, repair, service, damage, or loss.
- Subsection (b) sets the $5.00 per day fee effective July 1, 2026, requires rental companies to collect it at time of payment, and requires monthly remittance to the Department of Revenue by the 15th of the following month.
- Subsection (c) specifies the new fee does not affect or void any existing rental contracts already in place.
- Subsection (d) authorizes the state revenue commissioner to create compliance forms and issue rules to implement the fee.
- Subsection (e) states the General Assembly's intent that at least 20 percent of collected fees be used exclusively for tourism purposes, subject to state appropriations.
- Section 2 repeals any conflicting laws.
From the bill
“each rental motor vehicle concern renting or leasing motor vehicles in this state shall charge a $5.00 per day fee to the customer for each calendar day such vehicle is rented or leased”
“at least 20 percent of the fees collected pursuant to subsection (b) of this Code section shall be made available and used exclusively for tourism purposes in this state”
“'temporary replacement motor vehicle' means a vehicle rented or leased by a person temporarily to use while the vehicle that it is replacing is not in use because of breakdown, repair, service, damage, or loss”
Discussed in meetings (3)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
Senate Finance Committee, February 23, 2026
From 0:18:40 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented a substitute adding a $5 daily rental-car fee, exempting rentals for repairs, maintenance and replacement. The sponsor said at least 20% of revenue would be intended for tourism marketing, subject to budget decisions, and cited estimated revenue of $59 million to $121 million. The sponsor said the substitute clarified coverage of services such as Turo. One member wanted a larger tourism share; another cautioned that no share was guaranteed without a constitutional amendment. Witnesses for the Georgia Association of Convention & Visitors Bureaus, Georgia Hotel & Lodging Association and Tourism Leadership Council supported increased marketing. An Enterprise representative opposed the fee, saying 75% of the company’s Georgia business occurred outside airports and 91% of neighborhood-location customers had Georgia licenses. The representative estimated $750,000 in annual costs to state agencies and warned of affordability and tourism effects. Another industry witness raised federal restrictions on airport fees. The sponsor said legislative staff had reviewed that issue. The chair promised to recheck the financial estimate, including agency costs. Another member proposed using existing revenue and local matching funds instead. The chair designated the meeting as a hearing only; no vote occurred.
Status timeline
- Senate Read and Referred (Senate)
- Senate Hopper (Senate)
Sponsors
- Drew Echols (R, SD-49)
- Russ Goodman (R, SD-8)
- Bo Hatchett (R, SD-50)
- Clint Dixon (R, SD-45)
- Billy Hickman (R, SD-4)
- Sonya Halpern (D, SD-39)
- Jason T. Dickerson (R, SD-21)
- Chuck Payne (R, SD-54)
- Randy Robertson (R, SD-29)
- Matt Brass (R, SD-6)
Topics
- rental car fees
- tourism funding
- state taxes
- transportation costs