Transportation

Why Do We Tax Car-Sharing Like It's Liquor or Cigarettes?

Taxes on quick car-share trips run as high as 60 percent.
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Rental-car taxes are a boon for big cities. They extract hefty contributions to local coffers from the constituents least likely to complain about it: out-of-towners. And they come in a variety of ingenious forms, as regular taxes, but also airport surcharges, one-time transaction fees and even micro-payments to help pay for pricey amenities like convention centers and sports stadiums.

You probably have no problem with this. Heck, your city needs the money. All across the country, though, rental-car taxes are also levied on a more local form of transportation that did not exist when most of these fee schemes were invented. Car-sharing members invariably have to pay these taxes, too, with the perverse result that your one-hour trip to the grocery store in Hoboken, New Jersey, will come with as much as a 62 percent tax.