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News Release


Proposed Rental Car Tax in Milwaukee Could Harm Local Economy 

CONTACT:      
Caleb Tiller, +1 703-684-0836 ext. 138, ctiller@nbta.org

Nicole Hayes, +1 703-684-0836 ext. 133, nhayes@nbta.org 

 

Alexandria, VA (January 11, 2010) – The National Business Travel Association (NBTA) and the Wisconsin Business Travel Association (WIBTA) are urging civic leaders in Milwaukee, Wis., to reject a proposal that would establish a new rental car tax ranging anywhere from $2 to $18 per transaction to fund a commuter rail project. According to an NBTA report released in August 2009, Milwaukee’s airport currently ranks 3rd highest of 50 U.S. markets in general sales and travel taxes. The magnitude of the proposed taxes, if passed, would catapult Milwaukee to the top of the list.

 

Michael W. McCormick, NBTA Executive Director & COO, said, “Officials in Milwaukee should thoroughly consider the consequences of a new rental car tax. The city already approved an increase in the food and beverage tax last year; an additional tax on travelers would only continue to increase the burden on visitors.”

 

In seeking funds to build a light rail system, which benefits all residents of Milwaukee, Racine and Kenosha, the state legislature has identified car rental consumers as the people who should shoulder these costs.  However, as travel budgets are currently limited due to a weak economy, these additional costs will have a negative effect on the entire region’s hospitality industry. 

 

McCormick continued, “While raising or implementing taxes on lodging, rental car and meals services affects out-of-town visitors, cities underestimate the number of local businesses who make use of the same services. In actuality, these taxes are not only burdening travelers, but also hurt local enterprises that contribute to the local economy.”



The National Business Travel Association (NBTA) is the world’s premier business travel and corporate meetings organization. NBTA and its regional affiliates – NBTA Australia / New Zealand, the Brazilian Business Travel Association (ABGEV), NBTA Canada, NBTA Europe, NBTA Mexico, and NBTA USA – serve a network of more than 17,000 business travel professionals around the globe with industry-leading events, networking, education & professional development, research, news & information, and advocacy. NBTA members, numbering more than 5,000 in 30 nations, are corporate and government travel and meetings managers, as well as travel service providers. They collectively manage and direct more than US$340 billion of global business travel and meetings expenditures annually on behalf of more than 13 million business travelers within their organizations. For more information, visit www.nbta.org