I recently had occasion to rent a car at a nearby car rental establishment. I noticed something in a corner of the contract that I had never seen before:
When I asked about this, I was told that this was new; they were instructed that if the customer had recently arrived by plane, they would have to charge them an airport tax, as if they had rented the car at the airport location. Since it is the state, not the rental company, that profits from these taxes, we can safely assume that this was the Government’s doing.
The logic behind this “new tax” is tenuous indeed. I had always thought that Airport taxes were charged at airport locations, and whether or not you just got off a plane was irrelevant. Apparently I was mistaken. So by this logic, if I drive to the airport and rent a car there, I should not have to pay airport taxes, since I did not just get off a plane. Somehow, I doubt that I would get out of paying that tax.
You can almost smell the State’s desperation to find some new untapped stream of revenue. I can just imagine some bright spark in Frankfort probably said something like “Hey, sometimes people fly in and rent cars elsewhere to get out of paying airport tax! We need to do something about this!“. Oh no you don’t: Last time I looked, tax avoidance was not the same as tax evasion, and it was completely legal.
So this is not an extension of an existing tax, this is a new tax – and one that the prospective purchaser can avoid paying by simply initialing “True“.
Given that this it a tax that can be easily avoided by lying, I wonder how much additional revenue it will generate?