Rental Car Taxes
Shane Downey
State & Local Government
Relations Specialist
NBTA
What Do These Have in Common?
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Budget Deficit
Performing Arts Center
Police Station
Highway Construction
Sewage Treatment
Facility
• Culinary Institute
• Baseball Stadium
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General Revenue
Convention Center
Domestic Security
Police Radios
Basketball Arena
Art Museum
Fire Station
Travel Costs Are Taking Off
• Travel budgets are not that flexible
• Additional costs such as taxes and fees on
travel are a major concern
• Fewer trips mean less business
o Hurts American economy
Rental Car Tax – Bad for Business
Travelers
• $5.9 Billion has been collected since
1990
o Affects Business and travel
• Out of town
• Locally
Philadelphia, PA
• 7% Philadelphia Sales Tax
• 2% Philadelphia County Local Rental Tax
o (to fund stadium projects)
• $2 per day Pennsylvania Public Transportation
Fee
o (to fund transit projects)
• 2% Pennsylvania Vehicle Rental Tax
• Total: 11% tax on rentals plus $2 per day fee
Impact on Cost?
• Philadelphia Airport : 3 Day trip
o Total Cost: $309.33 for a Hyundai Accent
o State Rental Tax:$6.00
o Philadelphia Tax:$34
• If proposed $2 a day increase is enacted
• $42 paid in tax
Bad Tax Policy
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Violate the Benefit Principle
Retaliatory
Regressive
Unreliable
Expected To Worsen
• Pattern of taxing travel services to pay for
projects
• In the past decade alone, the number of car
rental excise taxes has almost doubled
• Today there are 95 car rental excise taxes
across 42 states and the District of Columbia
Fighting Back
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Broad Coalition of Stakeholders
Economic Impact Study
Media Tracking
Legislative Tracking
Coordinated Message
NBTA Website – car rental tax
NBTA Successes
• Florida
o Defeated $2-a-day increase
• Virginia
• Pennsylvania?
GREAT Program
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Grass
Roots
Efforts
Affect
Travel
• www.nbta.org/TravelTaxes/GREAT
NBTA Legislative Action Center
• Exciting Communications Tool
o Send personal notes to your elected official
• Congressional, State, and Local
o Local media
o http://capwiz.com/nbta
Pennsylvania Action NEEDED
• Contact your State Senator and
Representative – Today!
• http://capwiz.com/nbta/state/main/?state
=PA&view=myofficials
NBTA Political Action Committee
• MISSION: Make the United States Congress
not only pro-business travel but pro-NBTA
o NBTAPAC is the only PAC that represents the business
travel industry’s concerns
o NBTAPAC affords the opportunity to educate Congress
on NBTA issues
Upcoming NBTAPAC Events
• June 4: Washington, D.C. Legislative
Summit – NBTAPAC Golf Tournament
• July 23: Reception with featured speaker
in Boston
What’s Next?
• JOIN GREAT
• www.nbta.org/traveltaxes/GREAT
• Contact your Representative
• www.nbta.org or
• http://capwiz.com/nbta/home
• Donate to PAC
• Shane Downey
(703) 236-1131
sdowney@nbta.org
Questions?
THANK YOU!