The American Automotive Policy Council has declared its support for the abolition of discriminatory taxes on rental vehicles.

Acting on behalf of leading car manufacturers General Motors, Ford Motor Company and the Chrysler Group, the AAPC said it was in favour of doing away with the practice of different states imposing various taxes on users who either choose or are required to hire a car or truck. To date, around $7.5 billion has been accrued from the US consumer through these taxes.

Stephen Collins, AAPC President,  said that many of the taxes were imposed by the states were done so under the false impression that rental vehicle drivers were affluent and could therefore afford what amounts to luxury tax.

Collins added that most cars rented in the US were by lower and middle income earners, with over 50 per cent of collections done from a neighbourhood depot as oppose to the popular myth that airport car hire was the significant force in the industry. These misconceptions were ultimately hurting the consumer on the pocket and can have a trickledown effect into the local economy and job market.

The AAPC has according voiced its support for ‘The End Discriminatory State Taxes for Automobile Renters Act’, or HR 4175. This motion would prohibit the enactment of further taxes on rental vehicles by state and local governments.

The American Automotive Policy Council is based in Washington DC and represents the mutual public policy concerns of its three member manufacturers.