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

NextPass 407 ETR

NextPass Expands Toll Payment Service to Highway In Toronto

Fleets and consumer can use a transponder-less option when traveling between Canada and the U.S.

Read More →
A black Jeep is displayed at the Zubie-Bosch-TSD exhibit during the International Car Rental Show.

Zubie, PurCo Integrate Rental Damage Detection With Telematics

The combination brings actionable vehicle insights into PurCo’s PurInspect platform, improving damage detection and operational efficiency for rental fleets.

Read More →
50 states map showing LOR rates for each state with different shades of light to dark green

U.S. Length Of Rental (LOR) Declines Slightly in Q1 2026

LOR related to insurance claims overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.

Read More →
Ad Loading...
Illustration of a driverless futuristic front seat/dashboard view of other cars on a freeway with city skyline on horizon.

Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services

The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.

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 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 →
Ad Loading...
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 →
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 →
Ad Loading...
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...