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Car Rental Fees: Tax

Although we often think of taxes as being fairly consistent throughout the United States, when it comes to the tiny taxes hidden in your car rental agreement it simply isn’t true. Although these are often government mandated taxes that apply to sales, airport use, and other miscellaneous provisions, it pays to understand them so you aren’t over charged.

Airport Taxes and How They Affect Your Car Rental

The government has made certain airport fees mandatory, and that includes airport concession charges and other fees. These costs must be sent directly to the government by the rental agency from money that it has charged the customer. The customer pays what the airport calls concessionaire or facility charges, and this fee is usually listed in the tax and fees section of your contract.

Remember that the agency must charge these items, but you can avoid paying the airport concession taxes by renting at an agency not located at an airport. Choose a company with it’s own lot and building to avoid paying the same concession fees through hotels.




Sales Taxes and License Fees

Government sales taxes are found at the state, city, and county level, and at some smaller levels as well. Again, this is a fee all renters must pay. The percentage of this sales tax varies greatly city to city, but you can find out ahead of time how much this will be so you can plan ahead for the expense.

Be wary of international taxes—these can often be very high, but again you can find out by calling your local car rental agency or checking online.

Other fees listed may include license fees, recoup fees, parking lot taxes, and others. Remember that even though the rental agency might call them taxes, it doesn’t mean they are required charges by the government. For instance, the parking tax is simply the fees that a car rental agency will charge to cover the cost of its own parking lot. While it’s not a lot—often only 30 to 40 cents—added to other like charges it can all add up.

Some agencies add license fees and registration fees. These official sounding words again might make you think they are mandatory fees. They are not. Some rental agencies may not even charge these fees, but you may also pay a higher daily rate. Somewhere along the line you will probably pay for these fees, so the best thing you can do is compare the total cost of the agencies’ quotes.
And how do you do that? Make 20 phone calls? No, you can simply log onto Travelocity for their lists of car rental packages that show the total price you will pay (except for insurance). Make sure you print out any paperwork you are sent when booking a car online so they can’t come back and quote you another price when you pick up the car. Always be educated when you are dealing with the agencies and you won’t have nasty surprises at the counter.

 
    
 
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