Short Term Motor Vehicle Rental Tax

The City Council of Corinth duly passed and approved the Short Term Vehicle Rental Tax on June 3rd, 2021. This tax was adopted under the provisions set forth in Chapter 334 of the Texas Local Government Code to fund the Commons at Agora, an entertainment venue in the new downtown district.   

The tax is to be levied at a rate of 5% for the rental of self-propelled motor vehicles including passenger cars, vans, sports utility vehicles, and light trucks. The tax is not imposed on trailers or trucks having a manufacturer’s rating of more than one-half ton. Every owner of a motor vehicle subject to the tax imposed by Ordinance 21-06-03-17 shall collect the tax for the benefit of the City. As required by the Texas Local Government Code, the owner is required to add the short-term motor vehicle rental tax to their customer’s rental charge.

Tax Collection

The tax is to be levied and imposed at the rate of five percent (5%) on the gross rental receipts from the rental of a motor vehicle. The tax imposed must be collected on every rental occurring on or after September 1, 2021 and must continue to be collected for so long as any bonds or other obligations that are issued by the City under Section 334.043 of the Act for the purpose of financing a portion of the costs of the Approved Venue Projects, and any bonds refunding or refinancing those bonds or other obligations, are outstanding and unpaid.

Tax Reporting

The vehicle rental tax is due by the 15th of each month for the prior month’s vehicle rental tax. The Short-Term Motor Vehicle Rental Form must be completed and submitted each month with the tax collections. 

Please remit payments to:
City of Corinth, Attn: Finance Department, 3300 Corinth Parkway, Corinth, Texas 76208