Colorado says no to car hire price increase

Earlier this month, the US state of Colorado’s legislators said no to a bill that would have increased the price of a daily car rental by $6. Florida was the second state to veto a tax increase, in their case a hike of $2 per day per rental. But despite state-level refusals, many business analysts are warning that tax increases in the industry are unavoidable.

CEO and president of the National Business Travel Association Kevin Maguire says, “With all these states, nothing is totally defeated. We’re finding that it’s dead for a period of time and then it’s brought back to life.”

President of Abrams Consultancy Group, a company that is dedicated to the transactions of car hire firms, Neil Abrams says the problem is not going to go away, “It’s taken on almost epidemic proportions. It’s driving up the price of a rental transaction and that’s never good,” he said, referring to the more than 110 taxes implemented in the industry on both state and federal levels over the past years.

www.nbta.org