Auto Rental News
MenuMENU
SearchSEARCH

Ohio Supreme Court to Rule on Columbus Tax

COLUMBUS, Ohio -- Car rental operators here are awaiting an Ohio Supreme Court decision on whether a new $4-a-day car rental tax will take effect or go before a public vote.Because $4 a day repr...

by Staff
August 16, 2002
2 min to read


COLUMBUS, Ohio -- Car rental operators here are awaiting an Ohio Supreme Court decision on whether a new $4-a-day car rental tax will take effect or go before a public vote.

Because $4 a day represents a hefty price hike for car rentals, Columbus operators fear that many customers will opt to rent outside of city limits if the tax goes into effect.

Ad Loading...

"The city argued that the extra tax would not affect demand, but that's beyond ridiculous," said Mike Reynolds, owner of a Thrifty franchise in Columbus. "A 20% increase in the price of any product will absolutely and positively affect demand."

Rental customers in Columbus already pay a $5.75% sales tax. In addition, airport customers pay a 10.19% concession fee and a $3.46 one-time charge to help pay for a new parking garage.

If the tax goes into effect, its revenues will be funneled into the city's general fund. Exempt from the tax are rentals lasting more than 30 days, rentals by a local resident whose own vehicle is being repaired or serviced, and rentals of vehicles designed for more than nine passengers. The tax would expire at the end of 2005, unless the city council votes to extend it.

A coalition of car rental companies, working closely with the Ohio Taxpayers Association, launched a referendum drive after the city council passed the tax June 24. The group had 30 days to collect 3,992 signatures to place the tax ordinance on the Nov. 5 ballot. But after the group filed the petition with city hall July 24, City Clerk Timothy McSweeney called the petition invalid, citing a technicality. He refused to submit the petition to the city council.

Nonetheless, McSweeney forwarded the petition onto the Franklin County Board of Elections to see whether it contained the required 3,922 valid signatures.

Ad Loading...

On July 31, one day before the rental tax was scheduled to go into effect, the pro-referendum group learned that the elections board had verified more than enough signatures. Attorneys for the rental industry coalition, Tom Hill and Phillip Harmon, then petitioned the Ohio Supreme Court to halt collection of the tax and to order McSweeney to submit the petition to the city council.

The complaint, filed on behalf of local Budget franchise manager Kevin Miles, argued that the referendum petition complied with all city requirements. As such, the complaint said, the city council was legally bound to either repeal the rental tax ordinance or place it on a public ballot.

On August 2, just one day after the rental tax went into effect, the Supreme Court ordered that collection of the tax stop until the justices could rule on the issue.

More Rental Operations

Back view of a remote driver in front of a screen delivering a car to a location.

Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030

A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.

Read More →
green and blue bar graphs compare fleet sales June 2025 versus June 2026
Fleet Acquisitionby Martin RomjueJuly 8, 2026

Rental Car Fleet Sales Show Mid-Year Strength

June gains ensured rental fleets closed out the first half of 2026 in positive territory.

Read More →
Close up of a row of white CUVs in the Surprice Mobility fleet at the Milan airport.

Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport

The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.

Read More →
Ad Loading...
Julian Gritsch with an MBA class in a classroom.

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry

Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.

Read More →
Green Motion team with banner bearing Japanese flag.

Green Motion Expands Into Japan With Master Franchise Agreement

Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.

Read More →
ACRA Chairman Sharky Laguana on stage at the ICRS event in Grapevine, Texas.
Legal & Legislativeby Martin RomjueJune 24, 2026

ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future

The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.

Read More →
Ad Loading...
Light blue horizontal bar graphs on a chart showing World Cup-related rental car booking trends.
Rental OperationsJune 23, 2026

World Cup Travel Data Shows Longer Car Rentals and More One-Ways

A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.

Read More →
Side view of ICRS speaker Sanchit Garg at podium in front of a floor lit red curtain
Rental Operationsby Martin RomjueJune 22, 2026

A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker

Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.

Read More →
Photos of Martin Romjue and Denis Gjoni on opposite sides of large headline for the video.
Rental Operationsby Martin RomjueJune 17, 2026

Stop Losing Money On Rental Tolls

Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.

Read More →
Ad Loading...
Richard Lowden gesturing on stage in front of a red curtain at the Gaylord Texan Resort near Dallas.
Rental Operationsby Martin RomjueJune 12, 2026

Rethink The Future To Avert A Race To The Bottom

Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.

Read More →
Ad Loading...