Proposed Rental Car Tax in Mesa Could Harm Local Economy

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. 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

Safety Tech: Crash Avoidance or Sensory Overload?

As advanced safety technologies become even more pervasive on mainstream vehicles, are we creating “stupid drivers?"

Own the Fleet, Own the Future

In the dialogue surrounding new transportation paradigms, fleets have been off the public radar until recently. Here’s what’s going on, and a way for you to participate in the conversation.

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Job Finder: Access Top Talent. Fill Key Positions.

>