NBTA officials and members of the Rocky Mountain Business Travel Association, a chapter of NBTA, last month met with Governor Bill Ritter of Colorado to explain how a proposal to raise rental car taxes in the state would negatively impact the Colorado economy.
“The Colorado proposal calls for a ‘visitor fee,’” said NBTA President and COO Bill Connors. “We wanted to meet with the governor to dispel the myth that car rental taxes only hit visitors and explain why this proposed law would pull money directly from Colorado businesses.”
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Bill Connors with Colorado Governor Bill Ritter and Rocky Mountain Business Travel Association President Pam McTeer |
The Colorado Transportation Finance and Implementation Panel proposal would add a fee of $6 per day to hotels and car rentals in Colorado to pay for road improvements and transit projects. The fee would place Colorado’s car rental taxes among the highest in the country.
“Rental car taxes are viewed as an endless pot of money by governments across the United States,” said Shane Downey, NBTA Government Relations Manager. “Many states see these taxes as a way to raise money without taxing local citizens and business. We try to let these governments know how wrong they are.”
In a survey of NBTA members, a majority of respondents indicated that their company spends at least half of their car rental budgets in their home markets.
“Plus,” said Downey, “Car rentals at off-airport sites comprise the majority of the U.S. rental car market, and most customers at these locations are locals, not visitors.”
NBTA is increasingly concerned with the increase of taxes levied on rental car customers. In April 2006 NBTA joined representatives from top car rental companies to address the explosion of car rental taxes across the United States. These companies expressed sound concerns and voiced opinions and complaints from their customers.
“NBTA’s goal is to be the nexus between the general business community and the rental car companies to raise awareness of the negative impact of these excise taxes,” said Connors.
NBTA successfully fought a proposed $2-per-day tax increase on rental cars in Florida. Two months after NBTA testified before the Florida Senate Transportation Committee apposing the proposed tax, Florida Governor Jeb Bush vetoed the bill.
A proposed increase in Wisconsin was also defeated in October of last year with help from NBTA and members of the NBTA Chapter Wisconsin Business Travel Association (WBTA). The defeated proposal called for a car rental tax increase from $2 to $15 to pay for new commuter trains. WBTA members sent numerous letters to state legislators and local newspapers opposing the 650 percent increase, exposing it as a hidden tax on local businesses.
“Members of the Wisconsin Business Travel Association were able to defeat this proposed tax increase that would have surely affected their own businesses," said Downey. "They aimed to inform and enlighten and should be seen as an example of what a dedicated group of individuals can do to protect their community.”
Downey continued, “The Rocky Mountain Business Travel Association has taken that example and reached right up to the top. NBTA Chapters working as team can bring the results we need to benefit our business communities.”
For more information about rental car excise taxes and how NBTA member can get involved, visit www.nbta.org/government.
Return to Connecting News February 2008