Rental Car Taxes

Shane Downey

State & Local Government Relations Specialist

NBTA

What Do These Have in Common?• Budget Deficit

• Performing Arts Center

• Police Station

• Highway Construction

• Sewage Treatment Facility

• Culinary Institute

• Baseball Stadium

• General Revenue

• Convention Center

• Domestic Security

• Police Radios

• Basketball Arena

• Art Museum

• Fire StationRENTAL

TAXESCAR RENTAL

CONNECTION?

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 businesso Hurts American economy

Rental Car Tax – Bad for Business Travelers

• $5.9 Billion has been collected since 1990o Affects Business and travel

• Out of town• Locally

Philadelphia, PA

• 7% Philadelphia Sales Tax

• 2% Philadelphia County Local Rental Taxo (to fund stadium projects)

• $2 per day Pennsylvania Public Transportation Feeo (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 tripo Total Cost: $309.33 for a Hyundai Accento State Rental Tax:$6.00o Philadelphia Tax:$34

• If proposed $2 a day increase is enacted• $42 paid in tax

Bad Tax Policy

• 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

An Alarming Trend

Fighting Back

• Broad Coalition of Stakeholders

• Economic Impact Study

• Media Tracking

• Legislative Tracking

• Coordinated Message

• NBTA Website – car rental tax

NBTA Successes

• Floridao Defeated $2-a-day increase

• Virginia

• Pennsylvania?

GREAT Program

• Grass• Roots• Efforts• Affect• Travel

• www.nbta.org/TravelTaxes/GREAT

NBTA Legislative Action Center

• Exciting Communications Toolo 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

• 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

What’s Next?

Questions?

THANK YOU!