Wisconsin's Car Rental Fee Increase Is in Limbo

Uncertainty over timing and money is cause for debate over when to begin a car rental fee increase that would pay for the state of Wisconsin’s Kenosha-Racine-Milwaukee commuter rail, according to the Daily Reporter. To approve grants for commuter rail construction, the Southeastern Regional Transit Authority (RTA) needs the state to approve new legislation and for the federal government to approve grants for commuter rail construction.

But RTA directors do not know if or when the state will pass the car rental tax. Because of that, the RTA does not know when to apply for the federal money.

The RTA board has not decided if it should increase the car rental fee now to pay for planning and engineering or wait until the state enacts the law and the federal government provides the money. The board in December voted to oppose immediately levying a $2 fee on car rentals in Milwaukee, Racine and Kenosha counties.

Michael Mayo, a member of the RTA board and a Milwaukee County Board supervisor who voted against the fee, said too many questions exist to start taxing car rentals now. Various draft bills would authorize new local taxes, such as a sales tax increase, to pay for local bus systems. Mayo also said he has not seen a budget that would show how the RTA would spend the money from the car rental fee.

The question of when or whether to increase the car rental fee is secondary to getting a new state law passed, said Kerry Thomas, executive director of Transit Now, also known as the Southeastern Wisconsin Coalition for Transit.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

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

Read the latest

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

6 Takeaways from the 2018 International Car Rental Show

Technological solutions are finally moving from reality to theory, peer-to-peer platforms are being redefined, China has the biggest room for growth, while Sixt’s U.S. aspirations have only just begun.

The Irony of Customer Service in the Digital Age

Sure, any company would jump at the chance to use technology to reduce labor costs. But it also comes with some big, red, flashing warning lights.

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Job Finder: Access Top Talent. Fill Key Positions.

>