Airport Rental Car Tax

Monday, July 31, 2006

Would you like to pay for a sewage plant in Massachusetts? Help bankroll the new Rodeo grounds in Randall County, Texas? Then hurry to the airport and rent a car!

Airport rental car taxes are among the most detested of hidden fees. They can jack up the price of a rental car by 20%.

Some cities use the funds for constructive purposes. Arkansas uses its 10% tax to pay teachers; a Massachusetts town near Logan airport uses its fees to build fire and police facilities. Others are just handouts to wealthy corporations. Dallas uses its 5% tax as corporate welfare for the Dallas Mavericks and owner Mark Cuban, one of the richest men in America. Atlanta is considering a tax to make car renters pay for the NASCAR Hall of Fame. More corporate welfare goes to developers and stadium builders in cities like Kansas City, which uses $3.50 of its $4 airport rental fee to pay for its new Sprint Center. How about taxing the people who actually buy tickets to the stadium rather than travelers and tourists?

A new study exposes these bogus airport fees for what they are. Among its findings:

• The notion that a publicly-subsidized stadium will serve as an engine of economic development is not valid.
• When it comes to airport car rentals, “the vast majority of customers at these locations are locals, not out-of-towners,” so the tax takes money out of the community rather than bringing it in.
• Irritated by the taxes, many consumers just drive further away, reducing business for airport location rental companies.

To circumvent the fees, consider alternate locations. Often you will be charged these fees if you pick up the car at the airport, but not when you return the car at the airport. You can find out how far the airport tax zone extends when checking through rental car websites or through travel sites such as Travelocity or Orbitz. On a recent Phoenix transaction, the airport rate was $100 for 3 days, off-site, it was $40. For a ten-minute bus ride downtown, that's a large pay off.

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