I had two free days with a LARGE rental car company and decided to use them this past weekend to rent a car out of Midway Airport. I was going to my nieces wedding.

My two free days cost me $42.48: $19.98 for the toll pass option (this was an optional charge which allowed me to go through the express lanes at the toll boths) and $22.60 in taxes.

So, math wizards, what's the effective tax rate if I paid $22.60 in tax on something that cost me nothing?

I know, taxes are high in that city/state and almost every state tries to load up on taxes for hotel rooms and rental cars (thinking it passes a tax burden to out of state folks). I know $22.60 is not a lot of money but it's easily more than 2x the daily cost of my prior 'free' rental days.

On the other hand, if we had a "Sing their Praises" forum on the board I'd certainly be telling everyone how great the folks at National Rental Car were. They allowed me to move from the regular Emerald Isle choices to the Premium level without additional charge. (that level is not covered by the free days). I told them I needed something large enough to transport my mother-in-laws wheel chair.

In some cases you still have to pay tax on "free" stuff. Been caught with that myself.

Like I tell my customers: "I don't charge tax, I collect it. The State charges it".

If I am not mistaken the car companies get hit with an airport fee/tax which gets passes on to you and the "man" does not care if its a free rental or not.

quote:

Originally posted by SR:

So, math wizards, what's the effective tax rate if I paid $22.60 in tax on something that cost me nothing?

So, math wizards, how do you add $19.98 and $22.60, and come up with $42.48? Common core?

(Just pulling your chain, don't take me seriously)

quote:

Originally posted by V-Tail:

quote:

Originally posted by SR:

So, math wizards, what's the effective tax rate if I paid $22.60 in tax on something that cost me nothing?

So, math wizards, how do you add $19.98 and $22.60, and come up with $42.48? Common core?

(Just pulling your chain, don't take me seriously)

HA!

Link to original video: https://youtu.be/_SuhRiO1_bg

somebody has a typo.. probably me. LOL

(Print is too small on the .pdf I received. Time for new glasses.)

It's a tourism and business traveler tax big cities use to gouge tourists instead of residents.

For example, Houston built 3 new stadiums for football, baseball, and basketball in a short time span and jacked up their taxes on hotels and rental cars. Resident's property taxes didn't go up as much as they could have, but I have to think that it impacts tourism way more than business travel.

quote:

Originally posted by tatortodd:
It's a tourism and business traveler tax big cities use to gouge tourists instead of residents.

For example, Houston built 3 new stadiums for football, baseball, and basketball in a short time span and jacked up their taxes on hotels and rental cars. Resident's property taxes didn't go up as much as they could have, but I have to think that it impacts tourism way more than business travel.

Huh? Tourists visit Huston? For what? Short of seeing Johnson Space Center, I can't think of anything I would want to visit there.

Governments love taxing rental cars to pay for things like new stadiums.

I love “resort” fees at hotels in Vegas. Stay with us for free you just have to pay our $40 a night resort fee... I get that’s it’s still an inexpensive room, but what “resort” stuff am I getting at your hotel in December? The pool is closed, your mini gym has 2 treadmills and a half of a weight set, you charge for parking so can’t even say that’s part of the fee... I’m just trying to figure out what the resort fee is for.

quote:

Originally posted by Skins2881:

quote:

Originally posted by tatortodd:
It's a tourism and business traveler tax big cities use to gouge tourists instead of residents.

For example, Houston built 3 new stadiums for football, baseball, and basketball in a short time span and jacked up their taxes on hotels and rental cars. Resident's property taxes didn't go up as much as they could have, but I have to think that it impacts tourism way more than business travel.

Huh? Tourists visit Huston? For what? Short of seeing Johnson Space Center, I can't think of anything I would want to visit there.

A Washington Nationals and Washington Redskins fan can't be expected to understand this, but some cities have professional baseball and football teams good enough that fans fly in to watch games

In all seriousness:

One of the best restaurant scenes in the US.

One of the top hospital systems in the US so lots of medical conferences/conventions.

Oil & gas capitol of the Western Hemisphere so lots of oil & gas conferences/conventions.

Anytime you rent from an airport, there are a lot of extra airport taxes on the rental. It's a per day charge, regardless of what the rental costs. Renting at a non aiport location always saves a lot of money.