Local, municipal and state governments across the country are aggressively seeking new revenue sources for pet projects, and oftentimes that means new hotel, airline, and rental car taxes. NBTA’s position on these local taxes is simple—we oppose such efforts, for a benefit conferred on all should be funded by all. The travel industry should not be the source of funding for state and local politicians who see this type of traveler tax as a way to avoid raising taxes on local constituents.
As part of its effort to take the offensive and strike back against these local, municipal and state efforts to raise revenue by taxing travelers, NBTA is working with the five major rental car companies to advance legislation in Congress to address the issue. Representatives Rick Boucher (D-VA), Chris Cannon (R-UT), Lacy Clay (D-MO), Russ Carnahan (D-MO), Steve Chabot (R-OH), and John Sullivan (R-OK) have agreed to introduce the legislation, which:
· Prohibits states and localities from taxing motor vehicle rental transactions, motor vehicle rental businesses, or motor vehicle rental property at rate higher than other similar transactions, businesses, or property (i.e. renting construction equipment);
· Does not include airport concession fees imposed by federally assisted airports; and
· “Grandfathers” in state taxes enacted by the date the bill is introduced.
For more information contact Shane Downey, NBTA State and Local Government Relations Specialist at sdowney@nbta.org.