Domestic Automakers Support Bill to End Excise Taxes on Rental Cars

ARTICLE TOOLS    | Print Subscribe

The American Automotive Policy Council (AAPC) - on behalf of Chrysler Group LLC, Ford Motor Company and General Motors Company - announced its support for proposals in Congress to end an array of discriminatory taxes imposed by different states on consumers who need or chose to rent cars and trucks. A total of $7.5 billion of these accumulated car rental taxes have been imposed on American consumers.

"The main argument used to support these discriminatory taxes on rental cars is that tourists, who are incorrectly assumed to be affluent, are paying them. So it's supposedly some type of 'luxury tax'. This is factually not true," AAPC President Stephen Collins said.

"The reality is that a major percentage of cars are rented in the U.S. by low and medium income consumers. That fact is backed by figures showing that more than half of all cars rented are from neighborhood locations, not airports. This pattern of misdirected and clearly discriminatory taxation hurts consumer of all income levels, absolutely hurts American jobs and has no basis in fair taxation principles," he continued.

AAPC offered its support for H.R. 4175, "The End Discriminatory State Taxes for Automobile Renters Act," which would prohibit state and local governments from enacting future discriminatory taxes on rental vehicles. A hearing on this legislation was held by the House Judiciary Subcommittee last week.

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.