IBJNews

Potential of higher car rental taxes drawing fire

Back to TopCommentsE-mailPrint

People who come to Indianapolis for business, ball games or other reasons could pay more for their visits if local officials decide to raise taxes on car rentals and professional sports tickets early next year.

A package that state legislators passed in 2009 to bail out the agency that operates the city's stadiums and convention center allows the City-County Council to increase the taxes, but it must act during the first two months of 2013.

If the council does act, taxes on car rentals could rise from 15 percent to 17 percent and the admissions tax on Colts and Pacers tickets could increase from 6 percent to 10 percent, The Indianapolis Star reported.

The idea is drawing the ire of the local hospitality industry, which for years has complained about creeping tax rates on hotel rooms, rental cars and meals that they say burden their customers and make Indianapolis one of the highest-taxed U.S. cities for visitors.

The Indianapolis Colts and car rental agencies in particular say they're opposed to any increases.

"It would annoy customers more, especially when you factor in that ... we have to include all taxes and pricing" in Internet quotes, said Charlie Mullen, co-owner of Indianapolis-based chain ACE Rent a Car. "So it drives up the pricing of the car. It's just getting outrageous."

The city's NFL franchise doesn't want its fans to have to pay any more, either.

"It would be unfair to our ticket holders, particularly in these economic times, to be hit with an additional tax on the tickets — and not just for us, but for all the events" at CIB venues, said Dan Emerson, the Colts' vice president and general counsel. "It would be sending the wrong message."

A spokesman for the Pacers said the NBA team had no comment.

The proposal is part of ongoing budget talks between the council and Mayor Greg Ballard that also could include a new agreement with the Pacers.

Ballard said most visitors don't focus on taxes. "For the average customer who comes downtown for a convention, they ask what the overall cost of the experience is," he said. "And there's no disputing that this downtown is built up largely on visitor taxes."

The Capital Improvement Board estimates the full tax increases would bring in $6.9 million a year. The board's operating budget for next year is $63.9 million. Before the General Assembly approved the bailout in 2009, the board's cash reserves had dropped to $26 million.

The 15-percent car rental tax rate contributed to Indianapolis being ranked No. 8 on the Global Business Travel Association's list of the worst 10 cities for travel taxes in 2012. The group also considered Indianapolis' 9-percent tax on food and beverages and its 17-percent tax on hotels.

John Livengood, president of the Indiana Hotel and Lodging Association and the Indiana Restaurant Association, said he's more concerned about the car rental tax than the sports tax. It makes sense for fans who use sports facilities to help support the agency that operates them, he said.

But a higher car rental tax "would discourage people from coming to Indianapolis and spending money," he said. "That tax, like the hotel tax, is a disincentive for people to come here."

But despite the city's high travel taxes, Indianapolis hasn't been hurting for tourism.

A study released last week by Visit Indy estimated the economic impact of the tourism industry increased 10 percent last year to $3.95 million. An estimated 22 million visitors came to Indy, most of them for leisure activities.

ADVERTISEMENT

  • "the experience" - lolz
    We the People are the enableers of the Powers who are spending like drunken sailors. "Tax the outsiders" compliments well the already pervasive local xenophobia.
  • CIB
    Customers will either go along with the higher taxes or they won't. If they choose not to and it damages the local economy, the short-sighted leaders at the CIB will need to find a scapegoat. Taking responsibility for their own ineptitude is not part of that organization's culture.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Saw the Indy Men's Chorus "Music of Gilbert & Sullivan" at the Indiana Historical Society on Sunday evening.

  2. Temporary workers are not "tools" they are people and companies that keep large amounts of temp staff are cheating.

  3. I miss having them around. I hope one of their stores is in the general Meridian/86th Street area. I will make good use of it.

  4. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

  5. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

ADVERTISEMENT