Colorado Town Contemplates Increasing Car Rental Tax

Residents in Hayden, Colo. discussed the possible effects the proposed car rental tax would have on the town, according to Steamboat Pilot & Today.

At a meeting on Aug. 27, the Yampa Valley Airport Commission discussed the proposed 3.5 percent increase in sales tax, which Hayden voters will decide on at the Nov. 3 election. Janet Fischer, Steamboat Ski and Resort Corp.’s airline program director, provided figures about the cost to car renters.

According to Fischer’s numbers, 33 percent of cost of renting a vehicle at Yampa Valley Regional Airport (YVRA) goes to taxes and fees. If Hayden residents agree to the increase, that number would increase to 37 percent.

If Hayden voters approve the car rental tax, the town would raise $140,000, based on 2008 car rentals, according to Hayden Town Manager Russ Martin.

Additionally, if approved, the breakdown of the funds would be as follows:

  • Town: 20.4 percent
  • State: 25 percent
  • County: 2.7 percent
  • YVRA: 51.9 percent

Some people at the meeting expressed their concern for the increase in car rental taxes, citing that the higher costs would push away tourists and possible renters.

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