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Rates Speeding Up for Car Renters : Vacations: States are imposing surcharges on rentals as a way to increase revenue without raising taxes. Prices in Hawaii will go up Jan. 1.

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Renting a car in many states has become more expensive in recent years due to a rash of new taxes, usually referred to as surcharges.

These surcharges, which typically are assessed for each day of the rental period or as a flat fee per transaction, can put a dent in a traveler’s budget. For example, suppose you rent a car for a weekly rate of $80, then have to pay a $2 surcharge for each day. That extra $14 represents an 18% increase in the overall price of the car.

When the surcharge is calculated per rental transaction, the percentage can be even greater. Such is the case in the state of Minnesota, which has had a surcharge of $7.50 per car rental in effect since July 1. Assuming a basic charge of $35 for a one-day rental, this $7.50 fee means a price increase of 20% over the base rate.

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Among those states adding car rental surcharges recently:

--Hawaii. A new law goes into effect Jan. 1 that will add a $2 surcharge to each day’s rental.

--Pennsylvania, which implemented a $2-per-day surcharge Oct. 1.

--North Carolina, which imposed an 8% sales tax per car rental transaction on July 1.

--Texas, where the sales tax on rental cars was raised from 6% to 10% as of Sept. 1.

Another state, Florida, had imposed a $2-per-day surcharge on car rentals, up to a maximum of $60, as of July 1, 1990.

In addition, on Oct. 1, the state of Arizona granted permission to three of its counties--Maricopa, Pima and Yuma--to impose a maximum surcharge of $2.50 per car rental. So far, Maricopa (which includes Phoenix) has announced a surcharge of $1.50 per car effective Jan. 1, while Pima (which includes Tucson) will impose the full $2.50, also beginning Jan. 1. Yuma has not taken action yet. Revenue raised by the surcharge is earmarked to improve the stadiums used by the seven major league baseball teams that currently conduct spring training in Arizona.

Cities are in the act as well. Chicago has had a $2.75-per-car surcharge in effect since 1984. Moreover, a 6% sales tax will be added to the bill for rental cars in Cook County, Ill. (which includes Chicago), beginning July 1, 1992. Cleveland levied a tax of $3 per car rental as of April 1.

The American Car Rental Assn., a 500-member trade group based in Washington, is not very happy about the trend toward car rental surcharges. The organization has charged that legislators are imposing car rental surcharges because they are an easy way for politicians to raise money through taxes without angering the people who elect them. In effect, out-of-towners don’t get a chance to vote on the legislation that affects them while they help pay the bills for local improvements.

“The legislators are desperate to raise money, but they don’t want to hurt locals, so they focus on travelers,” said Jan Armstrong, executive vice president of the ACRA. “Along with all the air and hotel taxes, these car rental surcharges are making it more and more expensive to travel.”

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Not surprisingly, car rental companies, which have lobbied against such surcharges, are also unhappy with the trend.

“It hasn’t reached a point where consumers are really aware of all the surcharges, though some are complaining that they’re paying more than they budgeted,” said Gary Paxton, president and chief operating officer of Dollar Rent A Car. “I’m afraid this trend will continue as federal funds dry up for states. The car rental business is high-profile and an easy target. About 70% of renters are from out of the state where the car is rented, but this group has no say in approval of such surcharges.”

Paxton believes that the rise in surcharges could have a “chilling effect” on the car rental business, especially in Florida, where there has been talk of raising the surcharge from $2 to $4.

“We’d be extremely upset at any increase in the Florida surcharge, and oppose it as destructive to tourism in the state,” said Phil Shailer, senior vice president of corporate affairs for Miami-based Alamo Rent A Car.

Said Mike Olsen, a spokesman for National Car Rental, which is headquartered in Minneapolis: “I think the $7.50 surcharge in Minnesota is very unreasonable, and I’ve heard grumblings from consumers about it. I don’t know if the state government is concerned about tourism. Times have been tough for local governments in the past few years and they’re looking for ways to raise money without having to worry about their constituents. Car rentals are an easy mark, but it’s a very short-sighted approach to the issue.”

Though surcharges and taxes are listed separately on bills, many renters don’t realize the extra cost until they pay it.

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“Even though . . . we have a counter brochure citing the surcharge, renters just go to the bottom line and think it’s the car rental company that’s making the money,” Olsen said.

Finding out about new surcharges on rental cars may involve some homework for consumers. Reservations agents for the car companies will probably just give you the rental rates and state that taxes are extra. Travel agents have the standard car rental rates listed in their computerized reservations terminals, but the status of local taxes may not be known.

The best advice for consumers is to ask the car rental company’s reservations personnel about possible surcharges at the time of booking, including how much the surcharge is and whether it is calculated per day or per rental. Surcharge information is required to be included in the actual rental contract.

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