Government Rental Car Tax Avoided

In Idaho a proposed tax on rental cars was struck down.  The plan was aimed at adding money to support local highways according to http://www.idahostatesman.com/

“Gov. Butch Otter spent much of last year canvassing Idaho to generate ideas and support for his plan to increase funding for Idaho’s highways. The result: six proposals that in five years would generate $174.5 million.

But Otter’s plans have struck a pothole in the Legislature, which on Wednesday defeated the second of his six proposals.

His plan to add a 6 percent tax on rental cars was defeated in the House Transportation Committee, 11-3. The proposal would have generated $2 million annually.”

Rep. Bob Nonini made sure to point out that it was a bad idea to start taxing an industry that has seen several bumps in the road of late.  While the rental car industry isn’t exactly GM or Ford it certainly does benefit from a healthy automobile industry, so Rep. Nonini’s comments are generally on target.  Other taxes, such as a gas tax and vehicle registration fees have apparently also hit snags.  i suppose now is just not the time to be taxing your citizens.  So where will the money come from to fix these problems?  The printing press is the most likely source.  The government is going to have a hard time taxing citizens who are already strapped for cash, but with more and more people asking for a handout from Uncle Sam, the money has to come from somewhere.

For more information about how to rent a car during 2009, contact Triangle Rent a Car today!

Please Leave A Comment Below