Sacramento Car Rental Companies Charge Wrong Sales Tax
Rental car companies in Sacramento International Airport were using the 8.5% sales tax instead of Sacramento County’s 8% tax rate.
CBS13 Sacramento reported that some Sacramento International Airport rental car companies were charging customers the wrong sales tax.
Although the city of Sacramento raised its sales tax to 8.5% on April 1, the airport is technically located in Sacramento County, not within the city of Sacramento.
After visiting car rental companies at the Sacramento airport, CBS13 found that Avis, Budget and Hertz were all using the 8.5% sales tax instead of the 8% sales tax, according to the report.
Once discovering this mistake in sales tax pricing, CBS13 went to each auto rental company’s headquarters and also contacted the California State Board of Equalization, which gathers sales tax from companies.
According to CBS13, Avis Budget Group was following the California State Board of Equalization’s procedures for sales tax rates. But with this new found information, Avis/Budget has corrected the sales tax to 8% and will refund the overcharge to customers.
In addition, Hertz has also adjusted the tax rate and will refund customers, according to the CBS13 report.
Click here for CBS13’s full report: http://sacramento.cbslocal.com/2013/06/05/call-kurtis-investigates-rental-car-companies-charging-customers-wrong-sales-tax/
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