Auto Rental News
MenuMENU
SearchSEARCH

Coalition Opposes Wisconsin's Pending Car Rental Excise Tax

The Coalition Against Discriminatory Car Rental Excise Taxes opposes Wisconsin Legislature's proposed $18 car rental excise tax.

by Staff
June 18, 2009
3 min to read


On June 17, The Coalition Against Discriminatory Car Rental Excise Taxes—which includes car rental and car-sharing companies as well as travel industry, consumer, limousine and truck leasing organizations—announced its opposition to an $18 car rental excise tax currently pending in the Wisconsin Legislature.

“Our coalition continues to grow in response to blatantly unfair excise taxes that target car rental customers,” explained Ray Wagner, vice president of Government and Legislative Affairs for Alamo Rent A Car, Enterprise Rent-A Car and National Car Rental. “These arbitrary taxes contradict our country’s principles of democracy and fairness by singling out one group of consumers to fund a wide array of civic projects that benefit cities, counties and states across the board.”

Ad Loading...

The number of U.S. car rental excise taxes has doubled during the past decade, with more than 100 currently in place in 43 states and the District of Columbia—and more than $7.5 billion collected since 1990. Wisconsin’s proposed excise tax, designated to help fund a mass transit project, is one of the most egregious examples. It would increase the total tax rate in Kenosha, Racine and Milwaukee counties to more than 73 percent on a $30 daily car rental.

Journalist and consumer advocate Christopher Elliott, likewise concerned about out-of-control car rental excise taxes, has expressed doubts about the Wisconsin proposal on his Web site.

“I believe there’s a right way and a wrong way to do this,” Elliott wrote. “And a fly-by-night approach to raising taxes on drivers, many of whom can’t vote and may not benefit from the mass transit projects, is the wrong way. This issue deserves its own debate, far removed from the chaos of Wisconsin’s budget bill.”

Wagner added: “In these tough economic times, it is all too easy for political leaders to impose excise taxes on defenseless car rental customers—rather than enact an equitable, broad-based tax policy to spread the burden to all who benefit. As a result, more and more stakeholders are speaking up on behalf of all car rental customers, regardless of whether they are renting locally or at the airport.”

The National Business Travel Association (NBTA) agrees that car rental excise taxes like the misguided Wisconsin initiative are fundamentally unfair. “Our research indicates that the majority of NBTA member companies spend at least half of their car rental budgets in their home markets,” stated NBTA President and Chief Executive Officer Kevin Maguire. “That means if Wisconsin legislators proceed with this outrageous car rental excise tax, they will be pulling money straight from the bottom lines of companies based in Kenosha, Racine and Milwaukee.”

Ad Loading...

Moreover, the National Consumers League has noted that car rental excise taxes are regressive because they fall disproportionately on local low-income residents, many of whom must rent cars because they do not own a vehicle. This is particularly true for Enterprise Rent-A-Car customers—nearly one in four earns less than $40,000 annually; one in 10 earns less than $30,000; and one in 20 earns less than $20,000.

The coalition has publicly acknowledged that local government authority not only is the cornerstone of U.S. democracy, but that local leaders obviously are struggling to fund many worthwhile programs, including the Kenosha-Racine-Milwaukee mass transit construction project. However, as municipalities, counties and states carry out their critical role in protecting consumer and citizen rights, it is important they extend that protection to all constituents, including car rental customers.

“Wisconsin’s shocking car rental excise tax proposal will distort basic economics by transferring revenue from our industry to the construction industry, which, in turn, will impact individual consumers and the local business community,” Wagner stressed. “We can’t help but wonder if Wisconsin legislators really want to pick winners and losers by targeting customers of one industry to prop up another. Most people intuitively object to such double-standards—because they know if government officials single out car rental customers today, then most likely there will be other victims tomorrow.”

More Rental Operations

Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
globe of world and drivers license from UK
Rental Operations•September 28, 2026

The Booking Is Confirmed, But Is Your Customer Ready to Drive?

For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.

Read More →
Ad Loading...
Scenes from Car Rental Shows past
Rental Operations•by Staff•September 23, 2026

ICRS 2027 Opens Call for Papers

The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.

Read More →
hand holding phone and Turo logo
Rental Operations•by Staff•September 21, 2026

Turo to Launch Vehicle Delivery Service

Turo Delivered will let travelers search for vehicles that hosts can deliver directly to hotels, homes, airports, train stations, and other locations.

Read More →
plane, palm trees, car rental sign
Rental Operations•by Chris Brown•September 15, 2026

Palm Beach Airport Code Change Creates Car Rental Distribution Gap

A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.

Read More →
Ad Loading...
Team members of U-Save's new franchise
Rental Operations•by Staff•September 15, 2026

U-Save Continues Dominican Republic Expansion with Launch in Punta Cana

The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.

Read More →
A traveler searches for rental cars with an AI bot
Rental Operations•September 14, 2026

When AI Books the Rental Car, Who Controls the Sale?

As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)

Read More →
map of europe and summer car rental rates
Rental Operations•September 11, 2026

European Booked Car Rental Rates Fell 5%, Results Varied by Country

Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.

Read More →
Ad Loading...
thumbnail of Chris Brown and Mike DeLorenzo with title Time to Rethink Rental Categories?
Rental Operations•by Chris Brown•September 8, 2026

Is It Time to Rethink Rental Categories?

As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.

Read More →
Ad Loading...