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

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...