Auto Rental News
MenuMENU
SearchSEARCH

RACs May Sue over Proposed Tax

A proposed 2.5-percent tax on rental cars are scheduled to be placed on the ballot in San Mateo County. Rental car companies say the tax unfairly singles out the auto rental industry.

by Staff
August 20, 2008
2 min to read


Saying a proposed 2.5-percent tax on rental cars could be detrimental to their business, rental companies doing business at San Francisco International Airport and other unincorporated areas may sue San Mateo County, according to the San Mateo Daily Journal.

The country Board of Supervisors agreed to place the tax on the Nov. 3 ballot. Representatives of Hertz and Enterprise Rent-A-Car asked officials to either reverse the tax or at least postpone a decision. Supervisors Mark Church and Rich Gordon suggested the two taxes as a way to bring much needed money into the county’s general fund.

Ad Loading...

The supervisors first considered a 5 percent tax for rental cars but before the first reading dropped it to 2.5 percent as a compromise.

Dan Harvey, a Hertz representative, said the tax was unfair because it would single out the auto rental industry, especially when the travel industry is facing strong challenges at the moment. Karen Petrulakis, an attorney for Enterprise, said her firm is currently investigating potential legal challenges on that basis and the manner in which the proposal was passed.

Representatives of Teamsters 865 is worried members would face layoffs if the tax hurts car rental business at SFO.

The proposed taxes would generate millions of dollars for the county’s general fund.

The proposals do not have a sunset date, leading business representatives to question why the county would need to continue collecting the tax after the budget is balanced, according to the Daily Journal.


More Rental Operations

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

U.S. Rental Length Declines Slightly in Q1 2026, Enterprise Reports

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