Regulations

MORE NIBBLES: Operators Battle Stifling Sales Taxes

Posted on July 15, 2009 by LCT Staff - Also by this author - About the author

NEW YORK — As LCT previously reported in last week’s Driving Force, sales taxes on luxury transportation service are looking attractive to many states that face a budget crisis.

New York operators were dealt yet another blow. The state sales tax on service which they only began collecting in June has been increased by another .5 %. Operators in New York City who collect 8.375% will collect 8.875% if the governor signs the bill which awaits his signature. If signed, operators will be required to begin collecting the additional .5% within 10 days.

As New York operators reel under the tax, operators in North Carolina are trying to forestall the latest government revenue grab on limos. The North Carolina Limousine Association is waging a letter writing campaign to their state representatives in order to fight the tax being proposed by the governor. The association is also formulating plans to continue to tackle the issue in order for the limousine industry to be exempted from the tax. Operators in North Carolina are now exempted from sales tax on service.

As governments look to the chauffeured transportation industry for additional revenue streams to fund budgets, operators will begin to see just how much of this burden consumers are willing to bear before they say enough and no longer use such services.

The industry faces mounting burdens with the sales tax efforts, the recession, negative media images spurred by anti-business-travel politicians, and bottom feeder operators, along with illegals, undercutting the market with slashed prices.

Source: Linda Moore, LCT Magazine

View comments or post a comment on this story. (0 Comments)

More News

Florida Operator Explains How Uber, Lyft Get Free Ride

“What they are doing is undercutting everybody on pricing and therefore knocking us out of business."

Proposed Law Would Dismantle Nevada’s Limo Cartel

Commentary: Uber was able to get a bill passed that exempted TNCs from competitor vetoes, but other companies were left in the dust.

Uber, Lyft Now Regulated Under Michigan Law

Before, the TNCs did not have to pay state application and registration fees taxi and limo companies had to pay.

Judge Approves Big Settlement For Lyft Drivers

A $12.25 million settlement offer had previously been rejected because it "short-changed" independent contractors.

Most Consumers Say TNCs Should Ride By The Rules

A National Limousine Association commissioned Harris Poll shows strong public support for stricter TNC business practices.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *
LCT Magazine - February 2017 $12.95 NEW MODELS ISSUE COVER STORY: * Fleet Vehicles Preview * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close