Proposed Rental Car Tax in Mesa Could Harm Local Economy

ARTICLE TOOLS    | Print Subscribe

The National Business Travel Association (NBTA) and the Arizona Business Travel Association (AZBTA) are urging civic leaders in Phoenix, to reject a proposal that would establish a new rental car tax to fund training facility upgrades for the Arizona League Cubs. This new tax would establish Mesa as one of the highest taxed areas in the country.

Michael W. McCormick, NBTA president & COO, said, “Officials in Arizona should thoroughly consider the consequences of a new rental car tax. In today’s economic climate, companies look diligently at all travel and meeting costs and are likely to rethink travel plans to high-tax areas." In seeking funds to refit a baseball stadium for a professional sports team, the state legislature has identified car rental consumers as the people who should shoulder these costs. However, as travel budgets are currently limited due to a weak economy, these additional costs will have a negative effect on the hospitality industry throughout the region.

McCormick continued, “While raising or implementing taxes on lodging, rental car and meals services affects out-of-town visitors, cities underestimate the number of local businesses who make use of the same services. In actuality, these taxes are not only burdening travelers, but also hurt local enterprises that contribute to the local economy.”

 

Comment On This Story

Name:  
Email:  
Comment: (Max. 2000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Which Hybrids Pay Back the Quickest?

After five years and 15,000 miles of driving per year, are there any hybrids that actually have a lower cost of ownership than their gas-engine counterparts? One unexpected vehicle takes the prize.

How Far Will Cell Phone Bans Go?

The federal government means business with its new law banning cell phone use while driving commercial vehicles. Can the laws go even further, and how should fleets react?

Righting a Wrong in Arizona

Arizona is one of a super minority of states in which auto rental companies are required by statute to pay for the negligent acts of their renters. Look for new legislation in the coming weeks that proposes to change that.

Job Finder: Access Top Talent. Fill Key Positions.