Magazine for the professional car and truck rental industry.
Issue link: https://autorentalnews.epubxp.com/i/97296
ACRA: THE VOICE OF THE INDUSTRY T This year has been and continues to actively focus on public policy for the rental car industry. THE AMERICAN CAR RENTAL ASSOCIATION (ACRA) HAS effectively coalesced the industry behind key legislative initiatives and continues to build up its brand in city halls and state capitals around the country as well as in Washington, D.C. Through ACRA, the industry���s voice is being heard. As a result, the industry had some key successes this past year and will build upon those successes into the next year. Here is a year-end review: RECALLS This has been the most challenging issue thus far for our industry. After opposing several state bills in California, New York and New Jersey on the issue, as well as a federal bill, the industry aggressively engaged in discussions on federal legislation with consumer groups, Sens. Charles Schumer and Barbara Boxer, and Sens. Claire McCaskill and Roy Blunt as well. In the end, we sincerely believe we have agreed to a commonsense bill that is good for the industry and consumers. The goal now is to work for the bill���s passage during the lame duck (post-election, but before the new Congress convenes) session of Congress. If the bill does not pass then, we will work to advance it in the next Congress. It is critical the industry support this effort. If nothing is done in Washington, D.C., then the industry will likely face a score of individual state efforts over the coming years. Under that scenario, we could end up with a patchwork of differing and conficting rules and regulations on the issue, which would wreak havoc on ACRA members. Therefore, it is most effcient to get one federal law to ensure consistency across the country. TAXES Amazingly, our customers continue to be the target of additional layers of taxation, usually to pay for civic projects not related to renting a car. But, the industry did well to protect its customers from many tax proposals. ��� In Louisiana, we successfully prevailed in getting Gov. Jindal to veto four separate bills that would have continued several local rental car excise taxes throughout the state. This was a major win. ��� In Florida, where a local-option car rental tax 6 Fact Book 2013 AUTO R ENTAL N EWS is routinely debated in the Legislature, we successfully prevented the issue from advancing at all this year. The lone negative occurred in San Mateo County in California, where the voters in June ��� by a margin of 191 votes ��� passed a business license tax exclusively on car rental companies. However, we do expect potential rental excise taxes in the near term or next year in: ��� Reno, Nev. ��� increasing an existing rental car tax to re-fnance a minor league baseball stadium. ��� Indianapolis ��� increasing an existing car rental tax supplement fund that fnances the convention center and football stadium. ��� Tampa, Fla. ��� potential tax to fnance a new baseball stadium. ��� Minnesota ��� re-directing the existing 6.2% excise tax to fund tourism marketing. ACRA will help to engage the local membership in these markets so that our voice will be heard on these tax issues. In Washington, D.C., we will continue our efforts to have Congress pass legislation that would prohibit state and local governments from imposing these excise taxes on our customers. Similar federal laws protect the airline, motor carrier, commercial bus and railroad industries from such burdensome taxes. It���s time Congress extended that same protection to our customers. PRIMARY LIABILITY In Arizona, ACRA successfully changed the law to ensure that for third-party liability claims, the renter���s insurance would be the primary source ��� not the rental car company. This effort required working with the insurance industry, the plaintiff���s attorneys and legislators to get done. It was not easy, but we prevailed. Only a handful of states still have a similar law and ACRA will work with its local members in those states to pass similar changes that were applied in Arizona when it is optimal to do so. For instance, the industry will pursue a legislative change in Maryland. There, the renter is already primary in ���replacement��� rental circumstances, but the rental companies are primary in all other situations. ACRA will work to bring parity to the law so that the renter���s insurance is primary in all circumstances.