Wednesday, October 24, 2007

Flexcar Announces New Rates After Bid To Avoid Rental Car Tax Fails

Dear Daniel,

As you may know, Flexcar has been working with the Department of Revenue to address the application of the State and County rental-car tax to Flexcar members. While we made important progress in educating the Department of Revenue on why car-sharing is different from traditional car rental, we were unable to reach a definitive resolution. The Department determined that it could not exempt car-sharing from the rental-car tax without legislative authority.

Consequently, the Department of Revenue has informed us that we must now begin to collect the rental-car tax effective November 1, 2007. As a result, you will see those taxes reflected in our invoices beginning with any November Flexcar charges. For trips using Flexcars in King County (Seattle, Bellevue, or Kirkland), the rental-car tax will be 9.7%. Use of Flexcar vehicles in Vancouver, WA, will be subject to a rental-car tax of 5.9%.

We are disappointed that we were not able to fully resolve the issue with the Department of Revenue. While we were unable to achieve an administrative fix to this issue, we are already working with the Department and members of the Legislature on a legislative solution and are optimistic about a favorable outcome. We will keep you informed on the progress of our efforts.

Thank you for your continued support.

Regards,

Jamie Cheney
General Manager
Flexcar Seattle

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