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Los Angeles Times
Los Angeles Times
Travel
Christopher Reynolds

Travel dilemmas: Why car rental bills are so high: taxes and sneaky fees

If you're renting a car in Las Vegas any time soon, be warned: The base rate might seem low, but taxes and fees may add a significant amount to your bill.

This warning comes from the rental car comparison site Autoslash.com, which did a state-by-state comparison earlier this year and concluded that Nevada had the highest rental car fees and taxes in the country. (Las Vegas, of course, is the rental car capital of the state.)

The priciest states for rental car fees in the Autoslash list were east of the Rocky Mountains.

But once you start comparing cities and states, it's quickly clear that anywhere you rent a car, your bill deserves scrutiny.

Throughout the U.S., rental car prices rise and fall dramatically by the season and sometimes by the day.

"It's important that you recheck the rate," said Jonathan Weinberg, chief executive of Autoslash. "Just because you have the best rate today doesn't mean you'll have the best rate next week or next month."

Also, no matter where you're headed, the rental car company is likely to pitch you hard on insurance, toll coverage, prepaid refueling and other cost-boosting options. (That's another conversation.)

Almost anywhere you go, you can count on a medley of local and state taxes and airport and other fees that many consumers think are levies by some government agency.

Many of those costs are government taxes. Legislators know it's easier to extract money from visitors (who often rent cars) than from their constituents. And those taxes "are getting higher," Weinberg said. "It's basically a money grab by the municipalities."

Every state, every city and every rental car company has its own way of labeling the dollars it extracts from consumers.

Some states, like Colorado, have sales tax and separate rental-car taxes.

Then there's Alaska, which charges no sales tax but hits rental-car customers with a 10% surcharge.

Meanwhile, Oregon has neither sales nor rental car taxes. But that doesn't mean your Portland trip next year will be a bargain bonanza. Multnomah County, which includes Portland, has a 17% rental car tax.

For anyone who wants to see which states have the highest taxes that specifically target rental car customers, the National Conference of State Legislators has been keeping track. Alaska, Nevada, Arkansas, the District of Columbia, Maryland, Texas and Virginia are at the top of the list, all assessing 10% to 11.5%.

Once those state taxes get combined with city levies and other fees, the results can be daunting. Which brings us back to Nevada.

Autoslash's tally of Nevada fees includes a 10% rental-car surcharge and a statewide sales tax of at least 6.85%. The study also noted an extra 2% levied by Clark and Washoe counties (which include Las Vegas and Reno, respectively). In Clark County there's also 1.4% in sales taxes that Autoslash didn't delve into.

If you rent a car for a base price of $100 in Las Vegas, expect $20.25 or more on your bill.

Among other states with the highest combined taxes and fees:

Minnesota: Taxes and fees add up to more than 18% (9.2% statewide rental car surcharge, 6.875% in state sales tax and local taxes that can add up to 2%).

Arkansas: Taxes and fees amount to 16.5% (6.5% sales tax and 10% rental car surcharge).

District of Columbia: Taxes and fees add up to 16% (5.75% sales tax and 10.25% rental car surcharge).

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