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U-Drive-It Tax On Rental Vehicles
On December 1, Mecklenburg County began levying the new U-Drive-It tax on rental vehicles.
On December 1, Mecklenburg County began levying the new U-Drive-It tax. The tax is five percent of the gross receipts of a short-term lease or rental of a vehicle in Mecklenburg County.

The tax is applicable for passenger cars, trucks, vans, sport utility vehicles and motorcycles. Also included are property-hauling vehicles (van, truck or trailer) 7,000 pounds or less. The tax is not applicable for recreational vehicles or property-hauling vehicles over 7,000 pounds.

The U-Drive-It tax is separate from the Vehicle Rental Tax currently collected by the City of Charlotte and Mecklenburg County. The five percent U-Drive-It tax is in addition to the 1-1/2 percent Charlotte Vehicle Rental Tax and the 1-1/2 percent Mecklenburg Vehicle Rental Tax. The U-Drive-It tax is on some, but not all, of the vehicles taxed by the Vehicle Rental Tax ordinance.

The U-Drive-It tax was approved by the Mecklenburg Board of County Commissioners on September 19, 2006. The tax money will be provided to the City of Charlotte to fund CATS transportation services, which will allow the City to allocate funds in support of the cultural facilities plan. The agreements call for the City of Charlotte to apply 90 percent of the vehicle rental tax funds towards financing the cultural facilities with the remaining 10 percent going to the towns of Cornelius, Davidson, Huntersville, Matthews, Mint Hill, and Pineville, based on actual vehicle rentals in the those towns.

Approximately 170 vehicle rental agencies and vendors in Mecklenburg County will be responsible for collecting the tax and filing a return with the Office of the Tax Collector on a monthly basis.


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