New Colorado car rental tax to cost millions

A new car hire tax likely to be introduced in Colorado will end up costing renters an arm and a leg, according to the Rocky Mountain Business Travel Association (RMBTA). The organization estimates that the rental tax will take away millions from the pockets of ordinary renters each year and it recently noted its opposition to this new tax at a business forum. The proposed Colorado car hire tax will mean that renters will be required to pay an extra $6 per day, after each car hire, making it one of the most expensive such fees anywhere in the United States.

Pamela McTeer, RMBTA’s president, warned all Colorado citizens not to be “fooled” into thinking that the only people to be negatively impacted by this tax would be out of state visitors. McTeer cited recent studies which have concluded that roughly fifty percent of all renters are either local residents, or Coloradans from other cities. Additionally, local businesses are likely to bear the brunt of this new tax burden, as they tend to spend nearly half of their total yearly funds allocated to vehicle hires locally. McTeer referred to the proposed $6 per day tax as excessive, noting that Coloradans are likely to foot the bill.

Some analysts also fear that such a high car rental tax may mean that businesses will start looking to other states when organizing conferences and conventions. The US National Business Travel Association indicated that many organizations take local taxes into consideration when deciding on conference venues.