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Coalition Speaks Out on Behalf of New Jersey Car Rental Customers
Coalition Opposes Legislature's "Stealth" Initiative; Continues Fight Against Arbitrary, Unfair and Discriminatory Car Rental Excise Taxes
| Source: Enterprise
ST. LOUIS, MO--(Marketwire - June 23, 2009) - The Coalition Against Discriminatory Car
Rental Excise Taxes -- which includes car rental and car-sharing companies
as well as travel industry, consumer, limousine and truck leasing
organizations -- today announced its opposition to a car rental excise tax
that has been inexplicably included in New Jersey Senate Bill 2299 /
Assembly 4048.
This bill, frequently referred to as the New Jersey Economic Stimulus Plan
of 2009, primarily focuses on tax reform and enhancing municipalities'
ability to finance economic development projects. However, the bill also
includes a "stealth" provision allowing certain municipalities to impose up
to a 5 percent excise tax on rental transactions.
Car rental customers in the cities of Newark and Elizabeth, including those
at Newark Liberty International Airport, are immediate targets, but other
New Jersey municipalities may be affected, too. Like the Coalition, the
New Jersey Business and Industry Association also opposes this unfair and
arbitrary excise tax.
"Car rental customers in New Jersey already pay a special $5-per-day state
tax, on top of the standard sales tax," explained Don Fonte, Government
Relations Director for The Hertz Corporation, which is headquartered in
Park Ridge, N.J. "Now Newark and Elizabeth car rental customers are being
asked to up the ante another 5 percent for local economic development
projects. As a longtime New Jersey-based company, we are speaking up on
behalf of these consumers and businesses and publicly objecting to such an
unfair tax policy."
The number of U.S. car rental excise taxes has doubled during the past
decade, with more than 100 currently in place in 43 states and the District
of Columbia -- and more than $7.5 billion collected since 1990. As an
example, New Jersey's proposed excise tax would increase the total tax rate
for Newark Airport to more than 30 percent on a $46 daily car rental.
Ray Wagner, Vice President of Government and Legislative Affairs for Alamo
Rent A Car, Enterprise Rent-A-Car and National Car Rental, added: "In these
tough economic times, it is all too easy for political leaders to impose
excise taxes on defenseless car rental customers -- rather than enact an
equitable, broad-based tax policy to spread the burden to all who benefit.
As a result, more and more stakeholders are speaking up on behalf of all
car rental customers, regardless of whether they are renting locally or at
the airport."
The National Business Travel Association agrees that car rental excise
taxes like the misguided New Jersey initiative are fundamentally unfair.
"Our research indicates that the majority of NBTA member companies spend at
least half of their car rental budgets in their home markets," stated NBTA
President and Chief Executive Officer Kevin Maguire. "That means if New
Jersey legislators proceed with this outrageous car rental excise tax, they
will be pulling money straight from the bottom lines of companies based in
Newark and Elizabeth."
Moreover, the National Consumers League has noted that car rental excise
taxes are regressive because they fall disproportionately on local
low-income residents, many of whom must rent cars because they do not own a
vehicle. This is particularly true for Enterprise Rent-A-Car customers --
nearly one in four earns less than $40,000 annually; one in 10 earns less
than $30,000; and one in 20 earns less than $20,000.
The Coalition has publicly acknowledged that local government authority not
only is the cornerstone of U.S. democracy, but that local leaders obviously
are struggling to fund many worthwhile programs, including the Newark and
Elizabeth economic development initiatives. However, as municipalities,
counties and states carry out their critical role in protecting consumer
and citizen rights, it is important they extend that protection to all
constituents, including car rental customers.
"The proposed tax unfairly singles out one group of consumers to fund
unnamed civic projects in Newark and Elizabeth," Fonte noted. "At a time
when the car rental industry is struggling to overcome reduced leisure and
business travel, it is disconcerting that New Jersey -- home of the Hertz,
Avis and Budget car rental brands -- is seriously considering such a
discriminatory tax."
About the Coalition Against Discriminatory Car Rental Excise Taxes
The Coalition includes: Advantage Rent A Car, Alamo Rent A Car, American
Car Rental Association, American Society of Travel Agents, Americans for
Tax Reform, Avis Rent A Car, Budget Car Rental, Dollar Rent A Car,
Enterprise Rent-A-Car, The Hertz Corporation, National Car Rental, National
Business Travel Association, National Consumers League, National Limousine
Association, Thrifty Car Rental, Truck Renting and Leasing Association, and
WeCar (car sharing by Enterprise).