Car Rental or Share? Difference Could Mean a Tax Break in Minnesota

Minnesota Public Radio – February 15, 2017

Some neighborhood-based car-sharing services are asking the Legislature for an exemption from Minnesota’s car rental taxes. But the idea has run into resistance — from other rental companies. Minnesota’s taxes and fees on car rentals can exceed 20 percent, even more on cars picked up at the airport. Car-sharing services pay the same taxes, although they argue that they serve a different market. HourCar, Car2go and ZipCar cater to people who need temporary transportation to run errands, commute to work or go places not easily served by other transit options.

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