rental car taxes shane downey state & local government relations specialist nbta
TRANSCRIPT
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
What’s Next?
Questions?
THANK YOU!