When people rent a car or 15 passenger van in New York City, they are often surprised that they must pay more for the car rental fee than the rate quoted due to taxes which are imposed on New York Cityrent a car consumers byNew YorkState. While some New York City residents and visitors may view these fees as a scam, rip off or fraud; they are in fact actual taxes which were legislated into law by those elected by New York City residents to serve in the New York State Legislature in Albany.
In the early 1990’s, New York State passed a law which added a 1% percent rent a car tax on all New York car transactions whether the person renting the car or the 15 passenger van is a resident of New York or a visitor from outside New York or the United States. Two years ago,New Yorkincreased the car rental tax from a 1% surcharge to the current 11% which is imposed above theNew YorkStatesales tax rate of 8.875%. In essence, the cost of renting a car, 15 passenger van or SUV in New York City increased by nearly 20%. While many view such added expense as a rip off, scam, fraud or other; it is not theNew York Cityrent a car company which is too blame for this added cost.
Many States, Cities and even smaller municipalities throughout theUnited Stateshave either imposed specific rent a car taxes on car, 15 passenger vans and SUV’s or have attempted to do so. The rationale is that those renting cars and especially 15 passenger vans which are more expensive to rent, are not local residents and thus easy to tax. Ironically, inNew York Citythere are many local rent a car companies such as Allcar Rent A Car and many of the transactions we process are for local residents living in the communities we serve ofManhattan, Brooklyn, Queens and the Bronx.
It is ironic that while theNew YorkStatelegislature and other States, most recentlySan Mateocounty inCalifornia, suggest and impose these onerous rent a car taxes they are taxing their own residents and not outsiders who are not likely to return soon to the State or vote in the next election.
I hope that all elected officials realize and reverse the rent a car taxes they have imposed on New Yorkers and elsewhere throughout theUnited States. So remember when you see added taxes to yourNew York Cityrent a car invoice, the charges are not a fraud, scam or rip off rather a tax imposed by the Government of New York or elsewhere.