ST. LOUIS, July 23, 2019 /PRNewswire/ -- Enterprise
Holdings – which owns the Enterprise Rent-A-Car, National Car
Rental and Alamo Rent A Car brands – is pleased to support
Ohio's new car rental
modernization law that was recently enacted on behalf of all
taxpayers and consumers.
House Majority Leader Bill Seitz
and Senate Finance Committee Chair Matt
Dolan spearheaded the transparent legislative process with a
key stakeholder group comprised of the Ohio Department of Taxation,
the Ohio Insurance Institute (OII), all major airports, and the
U.S. car rental industry, including peer-to-peer companies.
Consistent Standards & Regulations
HB 166, which was signed into law by Ohio Governor Mike
DeWine last week, not only defines consumer requirements
(addressing insurance, pricing disclosures and safety recalls), but
also confirms that peer-to-peer providers are categorized as
"vendors" for tax purposes. This unambiguously takes the onus
of collecting or remitting taxes off individuals renting their
vehicles on peer-to-peer platforms – dispelling a myth often
perpetuated by peer-to-peer companies about the double-taxation of
vehicle owners.
"My objective in working through this issue was two-fold," said
Rep. Seitz. "To establish clear standards for insurance coverage in
these three-party transactions, and to ensure all peer-to-peer
platforms that receive the end customer's money are paying
applicable state taxes as the facilitating vendor."
The new law also provides a step toward compliance with 1989
National Association of Attorneys General (NAAG) regulations
requiring fair, honest and uniform consumer pricing and advertising
standards in the car rental industry.
In addition, HB 166 authorizes Ohio airports to regulate peer-to-peer rental
programs in a similar manner to other car rental operations. To
that end, the Columbus Regional Airport Authority sent a letter in
support of the legislation for protecting airports' "authority
to individually determine reasonable standards, regulations, etc.
for peer-to-peer car sharing companies…"
In total, at least 19 U.S airports have issued cease-and-desist
orders concerning peer-to-peer operations. Plus, legal action has
been taken in conjunction with several airports across the country,
including Tampa International
Airport, Los Angeles International
Airport, Massport (Logan International Airport) and San Francisco International Airport.
Parity & Fairness
"This effort is all about parity and fairness, in Ohio and every other state. It just doesn't
make sense for one section of this industry to benefit from
loopholes and special carve-outs," said Ray
Wagner, Enterprise Holdings' Senior Vice President of
Government and Public Affairs. "Enterprise welcomes each and every
competitor into the industry because, at the end of the day, we're
all in the business of renting vehicles – whether it's for an hour,
a day, a week or longer."
Wagner noted that states already have well-established
regulations governing car rental taxes and fees – not to mention
consumer protections around disclosures and sale of ancillary
products: "Just like in Ohio, all
peer-to-peer operators nationwide should be required to comply with
longstanding and state-specific regulations that govern car rental
transactions."
For example, almost 10 years ago, a Queens, N.Y., Supreme Court
Justice reviewed a car-sharing lawsuit and
found: "This bargain – use of a car in exchange for
a fee – appears little different from 'traditional rental car'
companies, notwithstanding … statements that contrast it with those
companies. The Court finds that [the defendant] is in 'the trade or
business of renting or leasing motor vehicles' as those words are
traditionally and plainly understood."
Other states holding peer-to-peer programs publicly accountable
include Colorado, Maine, Maryland and neighboring Indiana. Moreover, highly diverse coalitions
in Arizona, California, Florida, Texas and Illinois have been established to address
peer-to-peer rental issues. Participants range from the Associated
Industries of Florida and American
Car Rental Association members like Enterprise and Hertz, to the
Illinois and Texas Municipal
Leagues. Numerous regional and local agencies – for instance, the
Houston Sports Authority, Arizona Tourism & Lodging Association
and the Cactus League – likewise have been weighing in on the issue
of lost tax streams.
Although many peer-to-peer companies cultivate an image as
disruptors, increasingly there are a number of well-established
companies entering the peer-to-peer rental business.
"Overall, these are very sophisticated, well-funded and
tech-savvy companies," Wagner stressed. "It's no wonder that, as
peer-to-peer car rental companies continue to amass greater wealth,
they no longer can avoid the attention of state regulators."
Turo, in particular, has an impressive list of investors.
"Ironically, only last week a $250-million investment in Turo was
announced," he pointed out. "Meanwhile, they have historically and
consistently marketed themselves as car rental. One is left to ask
... how can you tell customers it is a better way to rent cars and,
at the same time, tell elected officials that it is not renting
cars?"
Technology & Innovation
Making customer service a constant focal point has positioned
Enterprise Holdings as a long-term industry leader in mobility and
technology. As a result, the company has spent more than
$3 billion making strategic
acquisitions – as well as corporate-venture capital investments or
commitments – in the U.S., Canada,
the U.K., France, Ireland, Spain, Brazil
and China since 2007. Investments
are primarily centered on mobility, travel technology, fleet
management and logistics, customer experience, and both autonomous
and electric vehicle (EV) technologies.
In fact, the company has a long history of promoting innovation
and MaaS (Mobility as a Service) options while maintaining fair and
consistent marketplace rules for all. "Frankly, we have never cared
what peer-to-peer providers call themselves," Wagner stated. "But
no company should ever feel entitled to self-proclaim their own
special exemptions, subsidies and tax breaks in communities where
they operate. That's why we hope this new law can be used as a
guiding example of peer-to-peer legislation for many other
states."
About Enterprise Holdings
Enterprise Holdings, Inc.,
manages the largest and most diverse privately-owned fleet in the
world through an integrated network of more than 10,000 fully
staffed neighborhood and airport rental locations. This global
network of independent regional subsidiaries and franchises also
operates the Enterprise Rent-A-Car brand – as well as
the National Car Rental and Alamo Rent A
Car brands – in 100 countries and territories. Combined,
Enterprise Holdings and its affiliate Enterprise Fleet
Management, which currently manage more than 2 million vehicles and
employ 100,000 worldwide, accounted for $24.1 billion in revenue in fiscal year 2018. In
total, the annual revenues of Enterprise Holdings and Enterprise
Fleet Management rank near the top of the global travel
industry, ahead of many airlines and most cruise lines, hotels,
tour operators and online travel agencies. Enterprise Holdings
currently is ranked as one of America's Largest Private
Companies and if it were publicly traded, would rank
on Fortune's list of the 500 largest American
public companies.
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SOURCE Enterprise Holdings, Inc.