Cohen Chairs Hearing on Legislation to End Discriminatory Taxes on Car Rental Companies

WASHINGTON, D.C. – Congressman Steve Cohen (D-TN), Chairman of the House Judiciary Subcommittee on Commercial and Administrative Law (CAL), today held a hearing on the “End Discriminatory State Taxes for Automobile Renters Act of 2009 (H.R. 4175).” The measure – authored by Rep. Rick Boucher (D-VA) – would prohibit discriminatory taxes on the rental of motor vehicles.

“Today’s hearing provided us with valuable insight into what could be discriminatory taxes on rental cars and the companies that own them,” said Congressman Cohen. “During these tough economic times, state and local governments are looking to raise revenue. But there is no place for discriminatory taxes in business. The testimony provided by our witnesses will go a long way toward helping us in Congress navigate this complicated issue.”

The car rental industry had an estimated value of $20.5 billion in 2009. With state and local taxing authorities looking to increase revenue, the vehicle rental market provides a potential source of funds. Automobile rental companies and the automotive industry have raised concerns that new state and local taxes and fees have been disproportionately imposed on the rental of motor vehicles.

Today’s legislative hearing was held to provide Subcommittee members with the opportunity to hear testimony on the taxes and fees imposed on the rental of motor vehicles, to determine whether the burden is discriminatorily imposed, and whether federal legislation is needed to address this concern.

The following is a list of witnesses who testified at today’s hearing:

• Congressman Rick Boucher, Author of H.R. 4175
• Raymond T. Wagner Jr., Vice President of Government Affairs for Enterprise Holdings
• Timothy Firestine, Chief Administrative Officer for Montgomery County, Maryland
• Sally Greenberg, Executive Director of the National Consumers League