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Municipal car rental taxes soar: buyers, suppliers addressing rising rental car taxes.

Publication: Business Travel News
Publication Date: 17-JUL-06
Format: Online
Delivery: Immediate Online Access

Article Excerpt
In a matter of years, municipal taxes on car rentals have grown from virtually nonexistent to widespread, while state and federal taxes have grown over decades, making estimating a car rental budget a daunting task for travel managers.

"It's very difficult to budget because those things keep changing," said Kevin Iwamoto, a former president of the National Business Travel Association who specializes in car supply management. "It's so easy to add a tax. Someone could just arbitrarily come along, say they need to raise money for a stadium and tack on a tax on car rental."

Only three local governments had enacted car rental taxes at the beginning of 2004, according to Washington-based nonprofit tax watchdog group the Tax Foundation. In less than...

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