Rental Car Surcharges and Taxes

[Mark Sedenquist]

I just dropped off a rental car, (used on a road trip), and noticed that the amount of taxes that are levied on rental cars have risen a good deal in recent years.

I am very curious what you have found on your own roadtrips and have started the poll above to share some information about this trend.

Rentals made from Las Vegas are subject to nearly 28% in taxes, surcharges and levies. Supposedly these taxes are distributed to the local airport commission, the county, the state and other taxing authorities.

It is my understanding that such levies now exceed 90% in locations like Kansas City and Detroit. What has been your experience?

In many locations, locals can request and receive a discount on the airport concession fee -- which in Las Vegas is 10% of the total rental.

Mark

[Robert Schaller]

Here in Phoenix, I know there are some extra charges but I am not certain where all of the money goes -- at least part of it goes toward building sports stadiums.

The city fathers (and mothers) and business people think it is OK to soak our tourists for these expenses after the taxpayers wouldn't approve higher general taxes for these purposes. I won't express my own opinion on that tactic. Or did I already? Bob

[Midwest Michael]

I'm heading to Dallas in a few weeks and will be renting a car, where taxes and fees will make up 80% of my rental cost.

The cost for my car will be 45.96. The cost for the taxes will be 36.95: including $16 for DFW facility fee, $6 TX License Fee, $5.11 Airport Access fee, $2.30 City of Euless Tax, and $7.54 Sales Tax.

An Airport Access fee and a Airport Facility Fee???


Adding to Bob's comments about Pheonix taxing tourists, in March the whole state of AZ also adds a "spring training" tax to all rental cars.

[Mark Sedenquist]

I'm heading to Dallas in a few weeks and will be renting a car, where taxes and fees will make up 80% of my rental cost.
The cost for my car will be 45.96. The cost for the taxes will be 36.95: including $16 for DFW facility fee, $6 TX License Fee, $5.11 Airport Access fee, $2.30 City of Euless Tax, and $7.54 Sales Tax.

It is getting crazy -- being a local in Las Vegas, I have been able to ask and secure an exemption for the tax used to "transport" me from the airport to the rental facility (which I have never used), but the airport authority is getting ready to close that loophole.

I would think that being a customer service representative at these places would be unpleasant at best. I have seen shocked tourists almost scream at the desk operators when their rental was nearly double what they expected.

Thanks for the intel on Dallas. Phew!

Mark

[tickford]

Hi people,

We are coming to New York in May and hiring a car for 30 days and the cost for car rental is approx $1049 US dollars and $458 US on top of that for taxes of some sort. It was put to me by a New Yorker that they are slugging tourists to pay for things in New York that the locals refuse to pay for, as seems the case in Las Vegas. As my husband says, we could nearly buy a car for that. Oh and BTW we still have to sort out part of the insurance which is on top of that.

[Mark Sedenquist]

We are coming to New York in May and hiring a car for 30 days and the cost for car rental is approx $1049 US dollars and $458 US on top of that for taxes of some sort.

Airport use taxes are the way many local governments pay for their services. Kansas City is currently running about 93% taxes and Las Vegas is about 28% --

It was put to me by a New Yorker that they are slugging tourists to pay for things

Actually the one group of people that really get slammed are business travelers. The average business traveler (without a Saturday usage/stay) pays about 34% more per week than that average tourist.

As my husband says, we could nearly buy a car for that.

Not really -- But in our view, the HUGE ADVANTAGE is that a rental car comes essentially maintenance free -- if something breaks, you can new one with little problem. Try doing that with a car you purchase for a month...

Oh and BTW we still have to sort out part of the insurance which is on top of that.

RoadTripping is an an adventure and adventure travel can be costly -- but worth every penny.

Mark

[tickford]

Editor,

Husband's comment was with tongue firmly in cheek. Of course renting a car from a reliable source is for us the only way to go, any problems and we call the rental company. Road tripping is what we nearly always do and are looking forward to this adventure, can't wait to go.

[kcstockdale]

Doing some research with Hertz, I learned they have off airport terminals that rent cars much cheaper and with less taxes then airport terminals.

Does any one know of a rental company that will rent to users under 25? Hertz is the cheapest being $25 a day for a driver under 25. So my week long road trip will cost an extra $175. Thats a bunch of "nonsense" if you ask me.

As far as Dallas goes, the extra tax is so the Cowboys can get a better stadium. If you ask me, they should just "increase" the cost of tickets for games and get the money that way.

[MDMonetti]

I've always paid less than 20%, but I only rent in more rural areas (I really think you can do without in most major American cities).

-M.Monetti

[MaxxedMan]

For $1500 you could buy a car that would worth $1500 a month later... not my depreciation there.