This letter is in response to the Press Release issued on November 5, 2009 by the Coalition Against Discriminatory Car Rental Taxes, entitled, “Growing Coalition Continues to Speak Out on Behalf of Florida Car Rental Customers.”

The aspect of doubling car rental excise taxes in Florida to help fund the rail system is not only alarming, but if enacted, will deter tourism, one of the largest industries and employers of the state. What the Florida Legislature is suggesting is that non-resident consumers should bear the financial burden of a budgetary shortfall, which is simply not acceptable. The fact is the local government should be looking for ways to enact a tax policy that will spread the burden to all who benefit from the rail system.

Moreover, these car rental excise taxes are unfair and create a huge financial burden on a large volume of local residents, particularly young adults who cannot afford to operate their own vehicles, as well as local businesses. The local resident whose primary vehicle is being serviced will also be subject to such taxation.

As we have stated before, the underlying problem is NOT what the fees are relative to the rental car facility, but the constant compounding by state and local officials of taxation that has nothing to do with car rental or our customers. These non-constituent imposed taxes are local government’s way of collecting taxes from the non-voting public, and sadly, the tourist pays the bills and has no voice.

We have witnessed many examples in the past two years in this difficult economy where government obligations are not being adequately funded due to reduced revenue streams. A funding of this rail system will very likely fall into this same situation. Then the government will tax others – not to fund the rail system, but to meet the government obligation.

If the answer is taxation, tax the rider, the person utilizing the service. The reason this is not being considered is it has already been said projected usage will drop if the fare is too high. In other words, the rail system is not sustainable on its own without a permanent subsidy.

Florida has a serious budget crisis taking place. The last thing the state needs is another project that has the very real potential of becoming another obligation.

Respectfully submitted,

Robert M. Barton, President
American Car Rental Association

Business travelers are “easy marks” for politicians who think that since we don’t vote or pay other taxes in their state, it’s OK to do this. But I am working in my travel plans hard to avoid those places where I’m being gouged, even if it means flying into another airport and staying in another nearby state. I also pay attention to hotel taxes and local “surcharges,” and these do influence my plans as well.

One of the worst charges is the growing trend to the “off-site consolidated car rental facilities.” These tend to be inconveniently located, sometime miles from the actual airport terminals. The generic bus/shuttle arrangements are either crowded (since everyone renting is going to the same place) and/or are located at pick-up spots which are more than inconvenient. Then I get to pay a “surcharge” on my rental to pay for this supposed “improvement” ON TOP OF the fee my rental company charges for their part of the facility!

One thing I am doing more and more is taking a cab or shuttle to my hotel from the airport, then renting a car on site from the hotel or a “local” town location. This often is significantly cheaper since there are none of the airport related fees added on, and I often have the convenience of more personal service.