Resolution Urging Congress to Eliminate Discriminatory State and Local Taxes on Automobile Renters


This resolution encourages Congress to eliminate discriminatory State and Local Taxes on automobile renters.


Model Resolution

WHEREAS, since 1976, 43 states and the District of Columbia have enacted more than 100 car rental excise taxes, which are beyond typical sales taxes, resulting in car rental customers paying more than $7.5 billion since 1990; and

WHEREAS, the National League of Cities in its May 2006 publication of TAXING PROBLEMS: Municipalities and America’s Flawed System of Public Finance recognized this unfair taxing burden on specific economic sectors and among its suggested solutions stated that “Governments should impose equitable and fair revenue burdens on individuals, corporations, communities, sectors, income classes and generations”; and

WHEREAS, the revenues from the vast majority of these taxes have gone to pay for unrelated projects such as sports stadiums, convention centers, performing arts centers, art museums, police and fire stations and public transportation; and

WHEREAS, state and local officials have rationalized these excise taxes because they believe the majority of these taxes will be paid by out-of-towners, thereby intentionally interfering with interstate commerce; and

WHEREAS, Congress has the constitutional power to regulate commerce among the states and has given protection to industries that are a part of interstate commerce – such as railroads, airlines, trucking and buses – from state and local governments that wished to discriminately tax those industries; and

WHEREAS, there is a growing coalition – the Curb Automobile Rental Taxes (CART) Coalition. The coalition consists of Alamo Rent A Car, the American Car Rental Association, American Society of Travel Agents, Americans for Tax Reform, Avis Rent-A-Car, Budget Rent-A-Car, Dollar Rent A Car, Enterprise Rent-A-Car, The Hertz Corporation, National Car Rental, Global Business Travel Association, National Consumers League, National Urban League, , US Hispanic Chamber of Commerce, the US Pan-Asian Chamber of Commerce, Thrifty Car Rental, and Truck Renting and Leasing Association; and

NOW THEREFORE BE IT RESOLVED, that {insert state} urges Congress to end discriminatory excise taxes on all car renters.


Approved by ALEC’s Tax and Fiscal Policy Task Force at the ALEC Annual Meeting on Thursday July 23, 2015 and Friday, July 24, 2015. Approved by ALEC Board of Directors on September 4, 2015.

Keyword Tags: 2015 Annual Meeting, Tax and Fiscal Policy Task Force

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