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* This press release from Turo arrived in my in-box minutes after Gov. Rauner’s veto statement, which claimed he had drafted his amendatory veto “in close coordination with the broader stakeholder community”…
Efforts by car rental giants to slap new taxes on thousands of Illinois residents were dealt a major setback on Tuesday as Gov. Bruce Rauner vetoed a bill that was backdoored to legislative approval in the waning days of this year’s spring session.
A bill developed by Enterprise Rent-A-Car would have triple taxed anyone using peer-to-peer networks to share their car. Illinois residents using those networks had no opportunity to provide input before it was quickly passed. Tuesday’s veto will allow them, as well as the companies hosting those services, to lend their voices to the discussion.
“We support strong safety standards and regulations in every state where we operate,” said Michelle Peacock, Turo VP of Government Relations. “Illinois was the only state where we were never given a chance to substantively discuss those regulations before they were rammed through to approval. We appreciate the opportunity to have a seat at the table, just as we’ve had everywhere else.”
In May, just days before the end of the Legislative session, language in an existing bill was gutted and replaced with language that would have created a new 5 percent state tax and upwards of 15 percent in local taxes on anyone sharing their car through a service like Turo – identical to the tax paid by anyone renting a car. However, those sharing their car on Turo already paid a sales tax when they purchased their vehicle – something companies like Enterprise are exempt from, costing the state $199.3 million each year. Additionally, Turo hosts pay taxes on any income generated by sharing their car.
That gut-and-replace amendment came as Turo has rapidly grown in Illinois, with nearly 264,000 residents using the service and more than 7,300 residents sharing their vehicle. The legislation would have stifled that growth, limiting choice for consumers and financially harming those earning an average of $625 per month by sharing their car.
The governor’s AV is here.
posted by Rich Miller
Tuesday, Aug 28, 18 @ 5:17 pm
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Don’t you love the transparency in those shell bills?
Comment by Anonymous Tuesday, Aug 28, 18 @ 6:56 pm
–However, those sharing their car on Turo already paid a sales tax when they purchased their vehicle – something companies like Enterprise are exempt from, costing the state $199.3 million each year. Additionally, Turo hosts pay taxes on any income generated by sharing their car.–
Is that for real? The state loses $200 million a year on car-rental-company auto purchases? That’s real money.
Comment by wordslinger Tuesday, Aug 28, 18 @ 9:38 pm
Why do rental car companies get to avoid sales tax?
Comment by Da Big Bad Wolf Wednesday, Aug 29, 18 @ 6:30 am
Rental cars don’t pay sales tax? I think I’ll create an LLC “Lousy Lemon Rental” to purchase my next vehicle.
Comment by Robert the Bruce Wednesday, Aug 29, 18 @ 9:15 am