San Mateo County Measures Fail, Would Have Assessed New Business License Taxes on Rental Car Companies

The nationwide economic turmoil is at least partly responsible for the defeat of two San Mateo County tax measures that would have raised $11.5 million through new business license taxes on rental car companies and parking facilities in the county's unincorporated areas, county supervisors said in an article by Bay Area News Group.

Most of those businesses are near the San Francisco International Airport.

Voters on Nov. 4 rejected Measure Q and Measure R on Nov. 4, a setback to the county's effort to close a $28.6 million structural deficit. The measures’ chances for passage dimmed as the country’s financial crisis worsened. Supervisor Rich Gordon, who proposed the measures along with Supervisor Mark Church, said “I think we felt that it was going to be certainly a difficult time to ask people to have businesses dig deeper.” Measure Q, an 8 percent tax on parking companies, failed with 52.6 percent of voters opposed and Measure R, a 2.5-percent tax on rental businesses, failed with 52.9 percent opposed, according to the elections office. They each needed a majority vote to pass. Gordon said voters may be more receptive to the business license taxes in 2010, the next year that general purpose taxes can be placed on the ballot, if the economy has recovered and the budget issues persist. County budget officials say the deficit could grow to more than $90 million if no action is taken. Len Almalech, vice president and general manager of Enterprise Rent-A-Car, who spoke out against the taxes, said supervisors should not try to balance their budget “on the back of one single industry” that is also struggling. “We’re glad the voters of San Mateo County saw this as an additional burden on an industry that was unfair and unjust,” Almalech said.

Comment On This Story

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

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.

Trends Moving the Truck Market

Storylines that emerged from the 2018 Work Truck Show include the increasing need for on-site productivity, inclusion of active safety systems in trucks, DPF frustrations affecting product decisions, data management, and the growing link between fleet management and company revenue.

MIT Study Reinforces the Newfound Importance of Fleet

Uber and Lyft drivers make far less when factoring vehicle expenses, though the actual numbers are now in dispute. A proper lifecycle cost analysis would’ve helped, and shows the benefit of collaboration with fleet professionals.

Job Finder: Access Top Talent. Fill Key Positions.