Reasons Why People Ask, "Can I Deduct Rental Car Costs on My Income Tax?"

Car and truck renters today are frequently askingAssociation. Apart from fighting against legislation on
themselves the question "Can I deduct rental car coststaxes they also educate consumers on the taxes.
on my income tax?" The reason for this is that5% tax is what you will pay when you hire a car in
legislation is going crazy in the implementation of taxesNew Jersey. This very tough as they are already
on car & truck rentals. This has made the car rentalpaying five dollars daily in various types of taxes.
companies most unhappy to say the least.Wisconsin charge more than three times their New
There is a group that has been formed, it is called theJersey counterparts. They have a mass transit project
Coalition against Discriminatory Car Rental Excisethat needs funding and this is the reason for the
Taxes. In over 80% of the states in the USA there areexorbitant taxes.
more than one hundred different types of taxesIt is reported by the coalition that the they want to
relating to car and truck rental. Way back in the 1990'sincrease tax by two and a half dollars in Michigan. The
there was a only a tenth of such taxes.taxing just seems to go on and on.
In Maine, the inhabitants there were able to for a whileRail projects need funding in the state of Florida. They
prevent an increase of 10-12.5 % increase in the taxesare trying to increase taxes there by two dollars and
when renting a car or truck. This suited all partiesthis would increase the current tax levied by a
associated with car rental, obviously not the lawwhopping fifty percent!
makers as they did not receive their taxes.It is generally accepted by people outside of the
Taxes can be as high as twenty percent imposed oncoalition and consumers that the taxes are needed for
rentals. Large corporations are paying amounts closeall the various projects. The coalition fiercely fights
to $5 million annually in car rental taxes.against the taxes.
These taxes are legislated so that cities can meetLike the rest of the world the USA has been
their budgets. There is widening hole in the budget anddevastated by the world recession. The state of the
deficit forces theses taxes to be imposed. Whilst thiseconomy in the USA is in tatters and this is the main
is understandable it does not make sales for car rentalreason for all these taxes.
companies any easier. They do not want to perceivedSometimes money is allocated to a certain project and
as in the tax collection business and the increasedwhen the project is completed that money is no longer
prices due to the tax has reduced sales. The Coalitionavailable for the project. It all of a sudden gets
against Discriminatory Car Rental Excise Taxes wasallocated elsewhere. No wonder consumers ask " can
formed three years ago and consists of eight carI deduct car rental costs on my income tax?
rental groups and the National Business Travel