The American Automotive Policy Council (AAPC) - on behalf of Chrysler Group LLC, Ford Motor Company and General Motors Company - announced its support for proposals in Congress to end an array of discriminatory taxes imposed by different states on consumers who need or chose to rent cars and trucks. A total of $7.5 billion of these accumulated car rental taxes have been imposed on American consumers.
"The main argument used to support these discriminatory taxes on rental cars is that tourists, who are incorrectly assumed to be affluent, are paying them. So it's supposedly some type of 'luxury tax'. This is factually not true," AAPC President Stephen Collins said.
"The reality is that a major percentage of cars are rented in the U.S. by low and medium income consumers. That fact is backed by figures showing that more than half of all cars rented are from neighborhood locations, not airports. This pattern of misdirected and clearly discriminatory taxation hurts consumer of all income levels, absolutely hurts American jobs and has no basis in fair taxation principles," he continued.
AAPC offered its support for H.R. 4175, "The End Discriminatory State Taxes for Automobile Renters Act," which would prohibit state and local governments from enacting future discriminatory taxes on rental vehicles. A hearing on this legislation was held by the House Judiciary Subcommittee last week.