A while ago we bashed a new Washington State policy to apply car-rental taxes to car-share vehicles. We said it was “like taxing penicillin during an epidemic” because car-sharing benefits everyone, not just those who car-share (fewer cars, fewer collisions, less congestion, etc.)
And that’s why everyone should be paying attention to the latest on this issue. A bill exempting car-sharing companies from car-rental taxes is before the Washington State legislature, and the House Finance Committee just heard testimony.
The Seattle Times summed up the rationale for the exemption.
Car-sharing firms and car-rental companies are very different. Zipcar members usually are residents already paying local taxes and who rent vehicles for a matter of hours. Rental-car customers tend to be out-of-towners who rent for days. . . .
Car-sharing helps people live without cars by providing them access to one when they need it. That means fewer cars and less carbon emission.
The state has set an ambitious goal of dramatically reducing greenhouse gas emissions. Why would we tax one of the most cost-effective methods of working towards that goal?
bryantheresa
car-free
a-kos
I might be an exception, but I live in Seattle and do rent cars occasionally usually for recreational purposes: hiking, snowshoeing, kayaking, etc.I looked at car-sharing options, but if you’re keeping the car for an entire day or more it’s cheaper to rent one.Again I might be an exception, but I’m not sure. I would guess most who rent are not from out of town, but there are probably more than a few locals like me who rent occasionally.
Alan Durning
a-kos1. You might check the pricing advantage again. Flexcar has adjusted its 24-hour rates.2. I’m actually opposed to the car rental tax in its entirety. We should want car rental to be more competitive with car ownership. Anything that helps sell transportation by the trip is a step toward sustainability.
dhenderson
Alan,I agree, as long as everyone buys appropriate insurance to cover their rental—just like if they had purchased a car of their own.
GP
I believe that one rationale for car rental taxes is that it is paid by visitors not by residents (or shall I say, not by voters).I do agree with exempting carsharing, but a-kos has a good point, too; many locals rent cars. Perhaps washington could provide some sort of credit or refund to residents who rent cars, but I’d hate to see the bureaucracy that would come with such a program.
dbrook
Portland Oregon (actually it’s Multnomah County, Oregon) specifically exempts carsharing from the rental car tax – precisely for the reasons being discussed. I wonder how much of the Washington legislature’s reluctance to exempt carsharing from the tax is being driven by the prospect of foregoing $100,000 of potential tax revenue per year?