Rental Car Tax Removed From Arizona Bill

A proposed provision that would establish a new rental car tax to fund training facility upgrades in Mesa, Ariz., for the Chicago Cubs was removed before the legislation was passed in the Arizona House of Representatives.

Michael W. McCormick, the National Business Travel Association executive director and COO, said, “This represents another significant milestone in the fight for fair and appropriate taxation on travel. We spoke out last month against this proposed tax that would have burdened business travelers and local businesses, and we’re happy to see our concerns were heard.

“This tax would establish Mesa as one of the highest taxed areas in the country, and in today’s challenging economy, companies are likely to rethink travel plans to high-tax areas. Arizona House representatives can congratulate themselves for eliminating a tax that would have deterred travel to their state, and we urge the Senate to do the same.”

In seeking funds to refit a baseball stadium for a professional sports team, the state legislature had proposed to add $1 to car rental charges in Maricopa Country. However, the measure passed in the Arizona House last week will now impose a surcharge on spring training tickets, and drop the rental car tax provision.

“We are pleased that members of the Arizona House of Representatives have realized the burden they could have imposed on not only out-of-state travelers, but also local businesses and tax payers. The car rental industry should not be the source of funding for projects that have no direct relationship to the rental industry,” said Robert M. Barton, president of the American Car Rental Association.

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