Chicago Imposes 8 Percent Car Rental Tax in Suburban Areas

In an attempt to plug a $50.5 million deficit to its budget, the city of Chicago has imposed an 8 percent tax on car rentals in suburban areas, according to

According to news reports, city officials believe that drivers who rent in the suburbs will spend the majority of their time in the city. Thus, car rental agencies have been asked to provide the city with copies of driver’s licenses and signed affidavits that at least 50 percent of rental car use will be outside of Chicago if agencies do not collect the tax.

Enterprise Rent-A-Car, which feels the requirements of submitting sworn affidavits and copies of driver’s licenses is an intrusion of privacy, filed a lawsuit, asking the court to find the suburban tax collection unconstitutional.

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