Maine Residents Fight to Keep Car Rental Taxes Down

In an effort to stop a potential tax increase from 10 percent to 12.5 percent on rental cars, Maine residents have signed a petition in opposition, according to USA Today. If it is determined that the signatures on the petition are valid, the tax increase would be put to a vote in June 2010.

Currently, as many as 43 states and the District of Columbian were imposing 114 separate state and local excise taxes for renting and leasing vehicles at the end of 2008. According to research by the Coalition Against Discriminatory Car Rental Excise Taxes, only 14 states imposed those taxes in 1990.

Further, Executive Director of the National Business Travel Association Michael McCormick says the taxes could cost a Fortune 100 company as much as $5 million to $10 million a year.

Currently, those renting vehicles in New Jersey pay a $5 per day state tax and a sales tax. Thanks to a new tax reform law, certain municipalities will impose a 5 percent excise tax on car rentals.

Some states, including Wisconsin and Florida, have imposed taxes to help fund mass-transit projects and/or rail projects.

In Wisconsin, counties will be able to charge $18 on each rental transaction. According to the coalition, the total tax rate could increase to more than 70 percent on a $30 a day car rental in Milwaukee, Racine and Kenosha counties.

In Florida, lawmakers are debating doubling a $2 car rental tax in a special legislative session in December.

The news report further went on to say that legislation is pending in Michigan to add a $2.50 excise tax to each car rental transaction.

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

Understanding The Fleetification of Everything

As fleet miles increase exponentially, and as new stratum of fleet enter both consumer and business use cases, the "founding fathers" who gathered at Fleet Forward in Miami last week have some work to do.

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Job Finder: Access Top Talent. Fill Key Positions.

>