Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Local News


Our network sites seattletimes.com | Advanced

Originally published March 13, 2008 at 12:00 AM | Page modified March 13, 2008 at 11:08 PM

E-mail article     Print view

State Legislature

Zipcar tax exemption gets zapped in Legislature

Users of Zipcar, formerly called Flexcar, will continue to pay a car-rental tax after the state Legislature failed to give the company an...

Seattle Times staff reporter

Users of Zipcar, formerly called Flexcar, will continue to pay a car-rental tax after the state Legislature failed to give the company an exemption.

Users of the car-sharing company now pay a 9.7 percent tax, adding about $1 to the $10-per-hour rental fee.

The tax was announced in September by the state Revenue Department, which said car-sharing organizations, such as Zipcar, are providing rental cars and are required to collect the car-rental tax. The tax went into effect Nov. 1.

Gov. Christine Gregoire sent a letter to the department, suggesting that Flexcar should not be taxed. "I believe our tax code should act as an incentive, not a hindrance, to innovation," she wrote.

The tax was deferred for a time, but the Revenue Department determined that the company must pay.

The company vowed to push for legislation that would exempt the company from the tax. While a bill was introduced this legislative session, it didn't pass.

"It's clear that car-sharing members will not receive relief from Washington state's rental-car tax," Zipcar spokesman John Williams said Thursday. "We are disappointed in the outcome. Zipcar is committed to continuing to find ways to exempt its members from a tax it believes is wrongfully applied."

Williams said Zipcar will try next year to win the exemption. The company asserts the tax is unfair because it targets local residents who already pay taxes, and it punishes a company trying to get cars off the road and people into mass transit.

Susan Gilmore: 206-464-2054 or sgilmore@seattletimes.com

Copyright © 2008 The Seattle Times Company

More Local News headlines...

E-mail article Print view      Share:    Digg     Newsvine

advertising

Arson suspect has long history of setting fires

Band of advocates, activists now McGinn's likely insiders

Light rail to airport to begin Dec. 19

Kirkland annex 'yes' could be slipping away

Kent man challenges Seattle Mayor Greg Nickels' gun ban

Advertising

Video

Opening day at Crystal Mountain
Skiers crowded the slopes at Crystal Mountain for one of the resort's earliest openings.

Video shows violent arrest by SPD
Fort Lewis Memorial
Highlights: Ken Auletta talks about "Googled"
Seattle International Cabaret Festival
Ken Auletta talks about "Googled"
Medal of Honor
Pelosi answers questions at Swedish Medical Center
Pelosi speaks at Swedish Medical Center
"Pistol" Pete Ryan

Marketplace

nwautos

2009's most fuel-efficient sedansnew
Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment

Open Houses

Find this weekend's open house listings.
Or search by location:

 
Most read
Most commented
Most e-mailed
 
 
Advertising