Rental Car Taxes

Written by Confusion support on December 13, 2007 – 6:54 am -

I’m looking at a rental car invoice right at this very moment. Due to an accident we had to recently rent a car for over 30 days. I see there is some ridiculous $2 a day Transportation Tax. Does anyone have a clue as to the purpose of this tax?

Of course there is no clear indication as to what this tax is even for. The invoice already has the state income tax on it! So we’re being punished with this extra tax because we had to rent a car to get to work? The rental car isn’t damaging the road, causing excess pollution, nor wasting more gas than any other car I would be driving. Most people aren’t renting a car because they need a “joy” ride, so the tax can’t be an entertainment type tax. So what is it?

We already had to pay an expensive fee, with taxed salary, to rent the car, let alone buy expensive gas to drive it (which, by the way, also had a load of taxes on it). A quick search revealed that many states are using this “Transportation Tax” on rental cars for such things as building stadiums, parks, public arts centers, etc.

I am not sure I get the connection with those renting cars being unwillingly forced to chip into some state fund, which is probably used any way the state wants to use it. Even if it is 100% directly used for roads, what is the justification for charging car renters. What are you trying to punish them for exactly? I’m confused. It’s as if someone just randomly put a tax on a service hoping no one would notice.