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Eliminating Taxes, Fees on Car Sharing Services
Posted
February 15, 2017
Views
86
February 15, 2017
86
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55:56Now PlayingA bill to eliminate the sales tax and fees applied to car sharing services gained the approval of the Senate Tax Committee Wednesday, February 15, and was sent to the Senate Transportation Committee. According to the bill author, Senator Scott Dibble, DFL-Minneapolis, the additional fees on car rental services caused the automobile sharing service, car2go, to leave the Twin Cities.
According to Dibble, the car sharing services stand apart from car rental companies, which face an additional 9.2 percent tax and 5 percent fee.. "The problem with these little, short-term car rental services in paying this particular fee, in particular in Minneapolis, is that they are also subject to all of the additional sales taxes," Dibble said. He said the overall costs reach 22 percent of renting the car on a short term basis, and was cited by car2go as a reason for leaving.
McKenzie Spalding, representing Enterprise National and Alamo Rental Car, said that Minnesota's taxes for rental cars "are far too high...It's too high for all Minnesota customers, not just for car2go customers or car sharing customers."
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