Enterprise Rent A Car sues city over taxes

www.enterprise.com

St. Louis-based Enterprise Rent-A-Car is suing the city of Chicago for attempting to tax car rental transactions that occur outside the cit limits, including some of the more distant suburbs.

The rental car giant filed suit in Kane County Court last week after the Chicago Department of Revenue determined that all rental transactions in Chicago and the suburbs were subject to the city-imposed eight percent leasing or transaction tax.

In order to be exempt from the tax, the city of Chicago requires rental car operators to photocopy customer driving licenses and have the renters complete a sworn affidavit that they would not be driving in the city with the rental car more than 50 per cent of the time.

Chicago is currently facing a budget deficit of $50 million and is seeking ways to raise revenue in a manner that is not constitutional, said the lawyer representing Enterprise, Stanley Kaminski.

“If you live in St. Charles, Illinois, and you went to your neighborhood Enterprise to use a car for a day, you would be required to pay the tax or fill out an affidavit and give a copy of your driver’s license,” he noted. “It’s unconstitutional. You can’t regulate taxes outside your borders.”

The lawyer is also arguing that the policy invades privacy and raises security concerns.

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www.enterprise.com