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.”

 

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