Required Use
When renting a car using state funds, you are required to use the rental companies under state contract with the Texas Building and Procurement Commission. Currently, these companies are:
However, state rules allow you to use any other car rental company if you can meet one of the following exceptions:
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Lower total cost to the state. Use of a non-contract travel vendor is less than the contract fare or rate which is offered to the general public, and/or when all trip expenses are evaluated, including ground transportation, insurance fees, parking fees, taxes, and travel time, the use results in a lower total overall cost to the state. If the contract travel vendor offers the same lower fare or rate, the contract travel vendor must be used, unless a valid exception exists. |
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Efficient use of services. Use of a non-contract travel vendor is necessary because the contract travel vendor is sold out, is not able to provide services at the time or location necessary to accomplish the purpose of the trip, has a real or anticipated labor disruption, or is providing negotiated rates for group travel. |
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Health and Safety issues. Use of a non-contract travel vendor may be allowed when a state traveler finds that the accommodations provided by the vendor may reasonably present a risk to the state traveler or person under the state's custody in the following circumstances: |
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Accommodations may lack a reasonable amount of security or safety, and/or may present a health risk based on the state traveler's individual needs; |
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Accommodations fail to provide an adequate amount of services required for a person with disabilities; or |
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Accommodations have limited availability of medical emergency facilities or equipment that may be required by a state traveler or person under the state's custody. |
Please note that many promotional rates (weekend, holiday, etc.) do not include insurance in the basic rental fee. Insurance is an additional cost and should not be declined. The combination of a promotional rate and insurance costs must be lower than the State contracted rate to qualify as a valid exception. Per the State of Texas Comptroller guidelines, if a non-contract rental is secured using a valid exception, Loss/Damage Waiver (LDW) charges will be reimbursed; liability insurance charges WILL NOT be reimbursed.
If you qualify for one of the exceptions above, and use a non-state contracted car rental company, it is extremely important for you to document the exception on your travel reimbursement voucher. An example would be:
A car rental company under state contract was not used because a non-contract rental car offered a lower total cost.
Failure to list this reason on your reimbursement voucher will result in the voucher being returned to you.
Standard Car Types
In accordance with the rental car contracts, the following types of cars in the car classes are standard for the State of Texas contract. The contract vendors must include these types cars or similar models in the car classes. The traveler may pay a higher rate for a particular car if the vendor has classified the car type in a higher car class.
Compact |
Chevy Cavalier; Dodge Neon; Ford Escort; Hyundai Elantra; similar model |
Intermediate |
Dodge Stratus; Hyundai Sonata; Mazda 626; Oldsmobile Alero; Pontiac Grand Am; similar model |
Full-size (2 or 4 door) |
Buick Century or Regal |
Minivan |
Chevy Astro or Venture; Dodge Caravan or Grand Caravan; Ford Winstar; Plymouth Grand Voyager; Pontiac Montana; similar model |
SUV 4-Wheel Drive Midsize |
Chevy Blazer; Ford Explorer; Jeep Cherokee; similar model |
SUV 4-Wheel Drive Large |
Chevy Suburban; Ford Expedition; Ford Excursion: similar model |
Taxes and Fees
If you pay for a car rental with any type of individual charge card, you must pay the taxes. (They will be reimbursed.) If a rental is direct-billed to a state agency, there should be no taxes charged-EXCEPT the "Prop., Title, Regis." charge. (The name may vary.) This tax was implemented under House Bill 2151, 74th Texas Legislature, and allows all rental car companies operating in Texas to charge a nominal fee to recoup the cost of registering and licensing their fleets. It is to be paid by individuals and state agencies. (Many other states have also implemented this type of charge, with different names.) Special events/stadium taxes fall under the same rulings as above.
Explanation of Taxes and Fees:
- Airport Access Fees: A fee that is charged to any customer that picks up a car at the airport location within their first 24 hours. Which is submitted directly to the airport authority and is payable by customer. This is paid for on all rentals.
- CFC-Customer Facilitation Charge: A fee imposed by the Airport for parking vehicles on-site at the airport. Which is submitted directly to the airport authority and is payable by customer. This is paid for on all rentals.
- Motor Vehicle Tax: A tax that is similar to a sales tax, but because rental car vendors provide a service and do not sell goods. This is not paid on Direct Bill rentals.
- Sport Authority/Stadium Tax: A tax that is set forth by some type of district, i.e., city county or school provide funding for a certain event or project. This is not paid on Direct Bill rentals.
- Texas Property Tax & License Reimbursement Fee: A surcharge that is passed on to the customer as reimbursement for license and title fees. This is paid for all rentals and will vary by city.
Refueling Provisions
Vehicles are provided to travelers with a full tank of gas. Fuel is not included in the rate. If a vehicle is returned with less than a full tank of gas, refueling fees will vary based on the vendor and location. Refueling fees are generally higher than "gas pump" prices.
Personal Rentals
State rates are not applicable for personal travel.
One Way Rentals
One way rentals with Avis are not allowed under current contract provisions.
