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> 4 states pocket excise taxes on rental cars, in addition to standard sales taxes and airport surcharges. Initially, I was going to argue that the existence o
by KingMachiavelli 7y ago
> 4 states pocket excise taxes on rental cars, in addition to standard sales taxes and airport surcharges.
Initially, I was going to argue that the existence of random taxes on car rentals and other mostly benign services is already an arbitrary unfair practice for state governments to raise more revenue.
Then I looked at my own state's, Colorado's, rental tax - it's $2 on top of sales tax which seems pretty reasonable. $2 seems pretty reasonable and small to the overall rental cost especially when tha artical says they can add up to an extra 30% on the car. Would I be happier if the extranalities of car rentals were collected some other way? Absolutely but I don't think the extra $2 is what car rentals are complaining about.
If the users of these apps are cheating and not paying the sales tax and rental tax, then the rental companies have a 100% valid point but I have a hard time thinking they just want these ride sharing/lending apps.
On the other hand, I would much rather have no random excise taxes on arbitrary services and more taxes on the actual externalites they produce such as taxes on fuel and conjestion pricing in dense areas.
- brogrammernot 7y ago$2 per day plus an additional 7.25% tax from Colorado, plus 2.9% sales tax. This has nothing to do with protecting rental companies and everything to do with states being pissed they aren’t getting their cut.
- KingMachiavelli 7y agoMy mistake. I'm quite curious as to how the additional 7.25% tax is justified. Perhaps it accounts for taxes that would have otherwised been payed when purchasing a vehical?