Car sharing firms oppose taxation

Car sharing firms-most notably Zipcar-are vehemently opposed to having to pay the same taxes that American state’s charge those who use the services of traditional car rental companies. Yet it appears as though Zipcar clients in an ever growing number of states will have to get accustomed to precisely this, as more and more state legislators agree that Zipcar and its car sharing service is not all that different from traditional daily renting, with the exception that it is possible to hire a vehicle on an hourly basis, and membership in the program is necessary in order to take advantage of this service.

The problem for car sharing firms is that their members have come to expect highly competitive, all-inclusive hourly rental rates, which usually range from $7 to $9 per hour and include insurance, as well as petrol. Previously, Zipcar clients in Pittsburgh were able to hire a vehicle for two consecutive hours-in order to do shopping and run errands-for only $18. If taxes are added on to this, however, the fee jumps to $22. The situation in Seattle is similar, where two hours worth of car rentals from Zipcar now stands at $21 instead of $19, which is what it originally cost, before state politicians decided to no longer exempt Zipcar from the standard rental tax.

Zipcar supporters and members, however, have long argued that car sharing is different from hiring, in that it is used primarily by locals rather than visitors and also helps the environment, by removing cars from the roads.

www.zipcar.co.uk