Car Rental Companies to be Hit Hard by New Tax Plans

Rental car companies are now being targeted by state and local
governments as a new way to help fund civic projects such as stadiums,
art centers, and convention centers. Las Vegas, Dallas, Arkansas and
Wisconsin have already put plans in to place to tax car renters to pay
for these new projects.

Here are some examples of different taxes and where the new money is
going to. Revere, Mass is charging an extra $10 per transaction for
fire and police stations. Kansas City is charging customers $4 a day to
help renovate their down town area. Dallas renters are charged an extra
5 percent to help pay for the new Dallas Mavericks Stadium, the American
Airlines Center. Arkansas is using part of the 10 percent renters tax
to go toward increasing teacher salaries.

Overall the new tax plans appear to be a gigantic help in funding

state and local projects. While the prices of renting a car may be on
the rise in the .u.s, out of town business travelers and the companies footing the
bill for their travel plans will be the ones paying. This tax plan will continue to provide money for state and local projects to ease in the financial burden.