Auto Rental News
MenuMENU
SearchSEARCH

ACRA Fights Proposed Taxes in San Mateo County

New study finds the airport could lose more than 100,000 daily rental contracts a year if just one of these proposed tax measures passes. Industry associations have raised almost $250,000 to fight the ballot measures.

by Staff
May 30, 2012
2 min to read


In San Mateo County, three travel-related tax measures will be on the June 5 ballot: T, U and X.

The new measures, if passed by voters, would impose a 2.5% tax on all gross receipts of car rental companies operating in unincorporated areas of the county, which includes the San Francisco International Airport (SFO) — or Measure T. The other two measures would approve a 2% hotel occupancy tax increase — or Measure U; and would create an 8% tax on parking at SFO — or Measure X.

Ad Loading...

In a new economic impact study of Measures T and U, a travel research firm found that the airport could lose 100,000 vehicle rentals a year if just one of these proposed tax measures passes. Released May 29 by Rockport Analytics, the report found that the county’s board of supervisors overestimated by 31% how much revenue the taxes would generate. The report says that the board’s analysis did not consider consumer reaction to higher prices.

The study also estimates that by raising the car rental tax, prices will increase, slashing demand that will cause a $3.7 million loss in annual revenues and will lower tax revenues by $2 million. As well, the proposed rental car tax hike would increase SFO’s total tax burden — taxes and fees on transactions and receipts — to 54.2%, the report found, saddling SFO with the second highest rental car tax burden among major U.S. metropolitan airports.

“SFO is a primary growth engine for San Mateo County as well as the broader Bay Area economy,” said the President and CEO of the San Francisco Travel Association, Joe D’Alessandro. “Singling out rental cars and hotels at SFO for punitive tax treatment will simply drive travelers to other airports — and they will take jobs, wages and spending with them.”

Study author Kenneth McGill, managing director of Rockport Analytics, stressed the study’s conservative estimates and said that a higher-tax reality could be even grimmer. “In today’s tight economy, consumers are highly sensitive to price increases, so the consequences of these tax hikes could be even worse,” he said. “New taxes could cut a family’s four-day stay to three, result in fewer meals in restaurants or less spending in local shops, or even result in a cancelled trip.”

According to the San Mateo Daily Journal, Enterprise Rent-A-Car and Hertz Corp. — both ACRA members — have donated almost $250,000 to the campaign cause, Taxpayers for a Strong Economy. The group in total has spent more $300,000 on professional services, polling, consultants, television air time and mailers to urge people to vote ‘no’ on the tax measures.

More Rental Operations

A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A black Audi SUV superimposed on a historic scene from downtown Tashkent, Uzbekistan.

Carwiz Sets Up Rental Operations In Central Asia

The global franchise operation reaches a first in its rental fleet portfolio with new service in Uzbekistan.

Read More →
Ad Loading...
A raging brushfire in the countryside.
Rental Operationsby Martin RomjueApril 30, 2026

Where Rental Fleets Must Adjust To Shifting Catastrophe Risks

West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.

Read More →
ARN Industry Newsmakers thumbnail page with ARN and ICRS logos and shots of Nick DiPrima and Martin Romjue
Rental Operationsby Martin RomjueApril 27, 2026

Using AI To Find Rental Car Damage

Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.

Read More →
Photo of CEO Krešimir Dobrilović against a gray modernist crooked-tile mural display.

Carwiz Opens Car Rental Service In Panama

A Carwiz partner in Puerto Rico is taking on the Panama franchise with operations in the nation's largest airport.

Read More →
Ad Loading...
A world map with Flexways logo and new locations headline.

Flexways Opens 10 Locations Among Franchise, Affiliate Rental Networks

The integrated business model combines each operator’s local expertise with international standards to boost sales.

Read More →
Photo of a suitcase, passport, and smartphone.

Traveler Customer Satisfaction Up This Year Data Study Shows

The study looks at customer analytics to size up performance in car rentals, rideshare, airlines, lodging, and OTAs.

Read More →
A rental car between two placards showing a symbolic revenue increase from $300 to $1600.

New Consulting Company Ready To Boost Point-of-Sale Revenue

Revcuity, an outgrowth of Frontline Performance Group, aims to help clients capture more revenue moments with face-to-face customers, including in the car rental space.

Read More →
Ad Loading...
Martin Romjue stands at conference stage podium close to a dangling, glistening chandelier.
Rental Operationsby StaffApril 15, 2026

Meet The (Semi-New) ARN Editor

Martin Romjue has been editing and reporting for ARN since 2023 and fully transitioned to the role of chairman of the International Car Rental Show in 2026.

Read More →
Ad Loading...