Zipcar also critical of Pennsylvania car hire tax

Zipcar, the prominent US-based car sharing service that merged with competitor Flexcar in 2007, is joining the chorus of car hire advocate and consumer groups, as well as car hire firms that are unhappy with a new rental tax introduced in Pennsylvania’s Allegheny County at the beginning of the month. The tax amounts to a $2 per day surcharge on all car rentals, which represents a significant extra fee for renters who hire a vehicle for a period of over a week. Although major rental firms operating in the county, such as Avis, Enterprise and Hertz are unlikely to pack up and move their business elsewhere, a range of consumer groups and those with a stake in the tourism and hospitality industry are continuing to express their displeasure.

Zipcar’s John Williams, a company spokesperson, observed that the tax potentially penalizes those who choose to rent a vehicle, whether on an hourly car-share basis, or within the context of more traditional daily rentals. Williams believes that the county council should adopt an approach that encourages people to share cars and hire vehicles rather than own one, as such policies are known to reduce congestion on the roads, as well as address the pressing problems posed by pollution.

The Coalition Against Discriminatory Car Rental Excise Taxes has led the campaign aimed at repealing the newest car hire tax. The organization’s spokesperson, Laura Bryant, observed that when a specific group of consumers are singled out for a new tax, the measure in question is clearly discriminatory.

In addition to the car rental tax, the county also has a 7% hotel tax, as well as a tax on alcohol consumed in restaurants and bars.

www.zipcar.com