October 23, 2007
By Shane Downey
The efforts and work of the Wisconsin Business Travel Association (WIBTA) and other NBTA Members were rewarded this past week when the proposed $13 increase on rental cars was defeated by Wisconsin state legislators.
The defeated proposal called for a car rental tax increase from $2 to $15 to pay for new commuter trains to link Milwaukee to its southern suburbs, Racine and Kenosha. The supporters of the plan framed the proposal as a tax on business travelers and tourists with little impact on the local communities. This myth was quickly rebutted by members of WIBTA, who determined the cost effect by multiplying their local rental activity by 15. The results made clear the fact that this 650 percent increase was a hidden tax on businesses and would significantly impact their companies.
WIBTA members led by Chapter President Laura Lane sent numerous communications to the state legislators and to local newspapers opposing the tax. Lane even met with the editors of a local newspaper to discuss the impact the tax would have on local businesses.
The business travel industry owes special gratitude to WIBTA for not only stopping this tax, but also preventing a precedent to be used as an example by other governments across the country.
Facts consumers and businesses should know about car rental excise taxes.