Lawmakers Kill Proposal for Idaho Rental Car Tax Hike

Lawmakers on Idaho’s House Transportation Committee have killed a proposal to add a 6-percent tax on rental car sales.

Four rental company executives and a lobbyist for the Idaho Car Rental Association spoke against the measure, which would have raised $2 million for the state, counties, and cities by adding a tax on the price rental companies charge each customer. The association representatives said the auto rental industry has already been battered by the country’s economic downturn.

Rhett Fornof, vice president and general manager at Enterprise Rent-A-Car, and who runs Enterprise operations in Utah and Idaho, described tumbling revenue, plummeting stock prices and bankruptcy filings among rental companies.

The bill, presented by Idaho Gov. C.L. “Butch” Otter, is just a small piece of Otter’s plan to raise funds for ongoing transportation needs through tax and fee hikes, funding shifts and the elimination of the fuel tax exemption for ethanol and biodiesel.

Lawmakers seemed receptive to industry arguments that rental agencies were being singled out to pay for broader needs.

“This does seem to me like we’re somewhat randomly picking one particular area (to raise revenue),” said Rep. Shirley Ringo, D-Moscow. “I don’t think it does anything to add fairness.”

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

Five Business Model Trends for 2017

As new forms of mobility take flight, the borders with traditional car rental are starting to erode.

Are Commercial Drone Deliveries Eminent in the U.S.?

Amazon just delivered its first package by drone in England. Will U.S. delivery fleets be able to take advantage soon?

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

Job Finder: Access Top Talent. Fill Key Positions.