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Arenas drive up car rental tax

 

By Gene Sloan
Copyright 1995 Gannett Company, Inc.
Article date: December 15, 1995
 

Bring a little extra cash if you're planning to rent a car in a city that's building a new sports stadium. An increasing number of those cities are adding car rental surcharges to help foot the bill.

The latest: Atlanta, where Mayor Bill Campbell wants to tack a 3% surcharge on all airport and downtown rentals to help fund a new $200 million downtown arena for the NBA's Atlanta Hawks.

Tampa has a similar proposal pending. Officials there want a 5% car rental surcharge to help pay for a new stadium for the NFL's Buccaneers.

In all, 11 cities have passed or are considering car rental surcharges, according to Budget Rent A Car. A quick look at a few of the areas:

--Washington state. Legislators recently voted to raise Seattle/King County's already hefty 15% car rental surcharge 2% more to pay for a new baseball stadium for baseball's Mariners.

--Arizona. State legislators authorized boosting the car rental surcharge in Tucson to $3.50 from $2.50, though it won't be implemented until the board of supervisors agrees. County administrator Chuck Huckleberry says he's not sure whether there will be final approval for the hike, which would raise money to help spruce up a baseball stadium used during spring training.

--Texas. State legislators considered but didn't approve several bills to add rental surcharges in cities where stadiums are proposed; observers expect such legislation to reappear- eventually.

"Local officials know they can pass these taxes without any fear of retribution because travelers can't vote them out of office," says Rick Webster of the Travel and Tourism Government Affairs Council.

But why boost car rental taxes rather than hotel or restaurant taxes?

It's easier politically, Webster says. "The hotel industry is better organized and has more clout than the auto rental companies," he says. Restaurants, he adds, are used mostly by locals, and locals vote.
 

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