Raleigh Businesses and CATRALA Oppose Car Rental Fee to Fund Local Transit Options
8 July 1997
Raleigh Businesses and CATRALA Oppose Car Rental Fee to Fund Local Transit Options
RALEIGH, N.C., July 8 -- Local owners of Thrifty Car Rental,
Triangle Rent-A-Car, Capital Ford Rental, First Choice Rent-A-Car, and the
local Car and Truck Rental and Leasing Association (CATRALA) have banded
together with other car rental companies and the Raleigh-Durham Airport
Authority, urgently calling for defeat of a bill that would allow a 5% tax on
car rentals to pay for a local mass transit system.
The bill in opposition, HB1231, would authorize regional transit
authorities to levy a 5% tax on short term car rentals. This would be a tax
in addition to an 8% highway use tax currently levied on car rental.
Supporters of the initiative have said: 1) the tax only affects big business
and shouldn't concern locals; 2) that 5% is a small amount that won't be
noticed, and 3) that the tax would only be paid by out-of-towners flying into
the region.
"Absolutely none of these points are true," said Nancy Workman, 8-year co-
owner of the Thrifty Car Rental franchise for the Raleigh-Durham area. "This
will have a significantly negative impact on me and others who are local
business owners and are contributing members of the community."
"Additionally, over 50% of the car rental business done in the city is
transacted by local residents, not out-of-towners flying in with big expense
accounts," said Charlie Bruce, president of the local CATRALA and manager of
Capital Ford Rental. "This means that much of the tax will be borne by local
Raleigh residents, not visitors."
The group also countered the notion that the tax wouldn't be noticed. "If
it were just the 5%, it might not be noticed, but further examination will
show that car rental is a heavily taxed industry, with its customers already
paying an 8% highway use tax," emphasized Workman. "That means renters would
be paying 13%, one of the highest rental car taxes in the country, and that
will most certainly have a negative effect on bringing in convention and
visitor business to our area."
The Raleigh-Durham Airport Authority (RDUAA) opposes the tax for similar
reasons, said John Brantley, Airport Director. "We are a self sustaining
governmental unit and we rely on revenues from airport vendors such as rental
car companies to fund our operation. If the car rental industry is negatively
affected, we will be negatively affected as well."
The group plans a letter writing and lobbying campaign to demonstrate
their opposition to the bill. Additionally, they have said they will also
alert their local rental customers who are being asked to bear the most burden
to pay for the transit system.
The bill is sponsored by Representative David M. Miner, and is expected to
be brought to the floor of the House for a vote as early as Wednesday.
SOURCE Thrifty Rent-A-Car Systems
