Auto Rental News
MenuMENU
SearchSEARCH

Newark Car Rental Tax Funds Unrelated Programs

A tax on travelers who rent cars from New Jersey’s Newark Liberty International Airport is helping to fund an animal shelter, a park and a jobs program in the city of Newark.

by Staff
January 29, 2014
2 min to read


A rental car tax at New Jersey’s Newark Liberty International Airport is helping to fund an animal shelter, a park and a jobs program in Newark, according to a report by The Wall Street Journal. The car rental tax is 5%.

“It’s hard to get these projects built,” Adam Zipkin, former director of economic and housing development for Newark Mayor Cory Booker, told The Wall Street Journal. “Without the rental-car tax, there was no other pot to make up that difference.”

Ad Loading...

New Jersey lawmakers passed an economic stimulus act in 2009, which allowed cities to enact a tax up to 5% on airport car rentals — Newark and Elizabeth were the only New Jersey cities qualified to impose the tax, according to the report.

Avis Budget Group and Hertz Corp. sued Newark in Essex County Superior Court to stop the rental car tax. They argued that the tax went against the U.S. Constitution’s Commerce Clause, which gives Congress the control to regulate trade among the states, says the report. A trial court disagreed with the car rental companies.

After this court ruling, Newark’s council distributed $12 million (from the tax) to initiatives to clean up empty lots and fund the city’s economic development corporation. In addition, $3 million was put toward Newark’s $639 million general budget, says the report.

“It’s always perceived to be easier for politicians to stick it to out-of-town travelers who will never use the service they are now paying for than to have the courage to face their constituents and ask them to foot the bill,” Richard Broome, executive vice president of corporate affairs and communications at Hertz Corp., wrote in an email. “That doesn’t make these taxes right or good public policy.”

Click here to view the full Wall Street Journal article: http://online.wsj.com/news/article_email/SB10001424052702303370904579296551900603872-lMyQjAxMTA0MDIwMjEyNDIyWj

More Rental Operations

map of globe with regional corporate car rental rates
Rental Operationsby StaffAugust 25, 2026

U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%

Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.

Read More →
Sixt H1 financial results
Rental Operationsby StaffAugust 14, 2026

Sixt Revenue Tops $2.4 Billion in First Half of 2026

Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.

Read More →
Bobby Klyce in memoriam image
Rental Operationsby Chris BrownAugust 13, 2026

In Memoriam: Bobby Klyce, Avis Licensee Legend

The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.

Read More →
Ad Loading...
Vibe coding webinar promo image
Rental Operationsby StaffAugust 12, 2026

How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]

A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.

Read More →
Globe image with Text: GBTA Business Travel Forecast

Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027

Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.

Read More →
Car rental sign with financial graph in background
Rental Operationsby Chris BrownAugust 2, 2026

Avis Cuts Fleet as Summer Demand Trails Expectations

Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.

Read More →
Ad Loading...
car rental booking engine on computer screen with text: Bookings aren't the whole story
Rental OperationsAugust 1, 2026

Why Bookings Are Only the Start of the Rental Day

A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.

Read More →
Rental Operationsby Chris BrownJuly 31, 2026

This Is the Oldest Car Rental Advertisement You’ll Ever See

This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.

Read More →
A counter agent chats with a customer over a rental counter
Rental OperationsJuly 21, 2026

The Desk Upsell Is Costing Operators More Than it Earns

Counter upsells generate revenue, but they can also slow transactions, erode trust, and cost repeat business. Fully inclusive pricing may offer operators a better path to long-term value.

Read More →
Ad Loading...
U-Save Mauritius team

U-Save Expands Indian Ocean Presence with New Master Franchise for Mauritius

The franchise has been acquired by Mauritian travel entrepreneur Umarfarooq Omarjee, an established figure in the island's tourism and mobility sector.

Read More →
Ad Loading...