This bill, frequently referred to as the New Jersey Economic Stimulus Planof 2009, primarily focuses on tax reform and enhancing municipalities'ability to finance economic development projects. However, the bill alsoincludes a "stealth" provision allowing certain municipalities to impose upto a 5 percent excise tax on rental transactions.

Car rental customers in the cities of Newark and Elizabeth, including thoseat Newark Liberty International Airport, are immediate targets, but otherNew Jersey municipalities may be affected, too. Like the Coalition, theNew Jersey Business and Industry Association also opposes this unfair andarbitrary excise tax.

"Car rental customers in New Jersey already pay a special $5-per-day statetax, on top of the standard sales tax," explained Don Fonte, GovernmentRelations Director for The Hertz Corporation, which is headquartered inPark Ridge, N.J. "Now Newark and Elizabeth car rental customers are beingasked to up the ante another 5 percent for local economic developmentprojects. As a longtime New Jersey-based company, we are speaking up onbehalf of these consumers and businesses and publicly objecting to such anunfair tax policy."

The number of U.S. car rental excise taxes has doubled during the pastdecade, with more than 100 currently in place in 43 states and the Districtof Columbia -- and more than $7.5 billion collected since 1990. As anexample, New Jersey's proposed excise tax would increase the total tax ratefor Newark Airport to more than 30 percent on a $46 daily car rental.

Ray Wagner, Vice President of Government and Legislative Affairs for AlamoRent A Car, Enterprise Rent-A-Car and National Car Rental, added: "In thesetough economic times, it is all too easy for political leaders to imposeexcise taxes on defenseless car rental customers -- rather than enact anequitable, broad-based tax policy to spread the burden to all who benefit.As a result, more and more stakeholders are speaking up on behalf of allcar rental customers, regardless of whether they are renting locally or atthe airport."

The National Business Travel Association agrees that car rental excisetaxes like the misguided New Jersey initiative are fundamentally unfair."Our research indicates that the majority of NBTA member companies spend atleast half of their car rental budgets in their home markets," stated NBTAPresident and Chief Executive Officer Kevin Maguire. "That means if NewJersey legislators proceed with this outrageous car rental excise tax, theywill be pulling money straight from the bottom lines of companies based inNewark and Elizabeth."

Moreover, the National Consumers League has noted that car rental excisetaxes are regressive because they fall disproportionately on locallow-income residents, many of whom must rent cars because they do not own avehicle. This is particularly true for Enterprise Rent-A-Car customers --nearly one in four earns less than $40,000 annually; one in 10 earns lessthan $30,000; and one in 20 earns less than $20,000.

The Coalition has publicly acknowledged that local government authority notonly is the cornerstone of U.S. democracy, but that local leaders obviouslyare struggling to fund many worthwhile programs, including the Newark andElizabeth economic development initiatives. However, as municipalities,counties and states carry out their critical role in protecting consumerand citizen rights, it is important they extend that protection to allconstituents, including car rental customers.

"The proposed tax unfairly singles out one group of consumers to fundunnamed civic projects in Newark and Elizabeth," Fonte noted. "At a timewhen the car rental industry is struggling to overcome reduced leisure andbusiness travel, it is disconcerting that New Jersey -- home of the Hertz,Avis and Budget car rental brands -- is seriously considering such adiscriminatory tax."

About the Coalition Against Discriminatory Car Rental Excise Taxes

The Coalition includes: Advantage Rent A Car, Alamo Rent A Car, AmericanCar Rental Association, American Society of Travel Agents, Americans forTax Reform, Avis Rent A Car, Budget Car Rental, Dollar Rent A Car,Enterprise Rent-A-Car, The Hertz Corporation, National Car Rental, NationalBusiness Travel Association, National Consumers League, National LimousineAssociation, Thrifty Car Rental, Truck Renting and Leasing Association, andWeCar (car sharing by Enterprise).