2. Rental Car Taxes Shane Downey State & Local Government Relations Specialist NBTA

3. What Do These Have in Common? Budget Deficit Performing Arts Center Police Station Highway Construction Sewage Treatment Facility Culinary Institute Baseball Stadium G eneral Revenue C onvention Center D omestic Security P olice Radios B asketball Arena A rt Museum F ire Station RENTAL TAXES CAR RENTAL CONNECTION?

4. Travel Costs Are Taking Off Travel budgets are not that flexible Additional costs such as taxes and fees on travel are a major concern Fewer trips mean less business oHurts American economy

5. Rental Car Tax – Bad for Business Travelers $5.9 Billion has been collected since 1990 oAffects Business and travel Out of town Locally

6. Philadelphia, PA 7% Philadelphia Sales Tax 2% Philadelphia County Local Rental Tax o(to fund stadium projects) $2 per day Pennsylvania Public Transportation Fee o(to fund transit projects) 2% Pennsylvania Vehicle Rental Tax Total: 11% tax on rentals plus $2 per day fee

7. Impact on Cost? Philadelphia Airport : 3 Day trip oTotal Cost: $309.33 for a Hyundai Accent oState Rental Tax:$6.00 oPhiladelphia Tax:$34 If proposed $2 a day increase is enacted $42 paid in tax

8. Bad Tax Policy Violate the Benefit Principle Retaliatory Regressive Unreliable

9. Expected To Worsen Pattern of taxing travel services to pay for projects In the past decade alone, the number of car rental excise taxes has almost doubled Today there are 95 car rental excise taxes across 42 states and the District of Columbia

10. An Alarming Trend

11. Fighting Back Broad Coalition of Stakeholders Economic Impact Study Media Tracking Legislative Tracking Coordinated Message NBTA Website – car rental tax

12. NBTA Successes Florida oDefeated $2-a-day increase Virginia Pennsylvania?

13. GREAT Program Grass Roots Efforts Affect Travel www.nbta.org/TravelTaxes/GREAT

14. NBTA Legislative Action Center Exciting Communications Tool oSoSend personal notes to your elected official Congressional, State, and Local oLoLocal media ohohttp://capwiz.com/nbta

15. Pennsylvania Action NEEDED Contact your State Senator and Representative – Today! http://capwiz.com/nbta/state/main/?state =PA&view=myofficials http://capwiz.com/nbta/state/main/?state =PA&view=myofficials

16. NBTA Political Action Committee MISSION: Make the United States Congress not only pro-business travel but pro-NBTA oNBTAPAC is the only PAC that represents the business travel industry’s concerns oNBTAPAC affords the opportunity to educate Congress on NBTA issues

17. Upcoming NBTAPAC Events June 4: Washington, D.C. Legislative Summit – NBTAPAC Golf Tournament July 23: Reception with featured speaker in Boston

18. JOIN GREAT www.nbta.org/traveltaxes/GREAT Contact your Representative www.nbta.org orwww.nbta.org http://capwiz.com/nbta/home Donate to PAC Shane Downey (703) 236-1131 sdowney@nbta.org What’s Next?

19. Questions? THANK YOU!