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Davis Vetoes VLF Pass-through Surcharge

SACRAMENTO, Calif. -- California Gov. Gray Davis this month vetoed a proposed 5% car rental surcharge, a portion of which would have offset the industry's financial burden arising from a new Cal...

by Staff
October 20, 2003
1 min to read


SACRAMENTO, Calif. -- California Gov. Gray Davis this month vetoed a proposed 5% car rental surcharge, a portion of which would have offset the industry's financial burden arising from a new California vehicle license fee hike.

The proposed rental transaction fee comprised two parts: 1)a 2.71% pass-through charge to pay for 80% of the VLF hike imposed on rental vehicles and 2)a 2.29% charge to help repay the General Fund's loan from the Transportation Congestion Fund and to help repay the latter fund's loan from the State Highway Account.

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Supporters of the bill had included Cendant Car Rental Group, ANC Rental Corp., Hertz Corp. and the California Coalition of Independent Car Rental Operators.

Governor-elect Arnold Schwarzenegger has pledged to rescind the VLF hike, although it's in question whether doing so will require a legislative vote.


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