Avis (CAR), Hertz (HTZ) Execs Comment on NJ's Proposed Car Rental Excise Tax

June 25, 2009 9:10 AM EDT

Ronald Nelson, Avis Budget Group (NYSE: CAR) Chairman and CEO, and Mark Frissora, Hertz Global Holdings (NYSE: HTZ) Chairman and CEO, today issued the following statement in opposition to an excise tax on car rental transactions that has been included in New Jersey Senate Bill 2299/Assembly 4048:

"While we understand the need for stimulus legislation during these difficult times, a tax on Avis, Budget and Hertz -- all of which are headquartered in New Jersey -- is completely contrary to the spirit and intent of stimulus. A new car rental tax will hurt, not help, our businesses at a time when we are all struggling to keep jobs in New Jersey. We call upon the legislature to withdraw the tax from the bill."

Frequently referred to as the New Jersey Economic Stimulus Plan of 2009, the bill 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 New Jersey currently pay a special $5-per-day state tax, on top of the standard sales tax. 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.

Related Categories

Corporate News
Momentum Movers

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?