Rental car tax rejected in Idaho

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Idaho Governor Butch Otter traveled extensively and spoke with voters throughout the state last year to generate new ideas for highway funding and came up with several proposals that could generate as much as $174.5 million over a five-year period.

The plans are not being well-received in the state legislature, however, and last week another of his proposals was defeated.

Governor Otter planned to impose a six percent tax on rental cars, a proposal that was defeated in the House Transportation Committee by a vote of 11-3. According to the governor, the tax would have generated at least $2 million each year.

Earlier, the same committee voted earlier not to send another of the governor’s revenue-generating bills to the full House – one that would have sharply increased specialty license plate costs.

The proposed rental car tax was strongly opposed by rental car companies. Testifying against the measure were representatives from Enterprise, Alamo, Budget Hertz and National.

According to the rental car company representatives, the industry is struggling in the current economic climate and a tax increase would harm their businesses. Their arguments were effective with most of the committee members.

“Now is not a time to go after this industry that’s faltering right now,” said Representative Bob Nonini, Republican, of Coeur d’Alene.

Thanks to www.idahostatesman.com for the above quotes, for more information on this article please visit their website.

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