Tuesday, February 27, 2007

Mixed Messages

All of the following quotes come from today's Capital editorial on the proposal rental car tax:
The measure would give the county permission to levy a tax on rental cars, and county officials take care to describe it as a "precautionary measure" - something to have in reserve if revenues flag.

But the record suggests that once something like this goes into the county's toolbox, it will be used, sooner or later. And most would bet on sooner.

Would such a tax make a difference to most residents? The measure includes exemptions designed to make sure any such levy escapes the attention of the voters. The tax would affect only short-term rentals, and would not include vehicles rented by residents awaiting repairs on their own cars.

The targets, in short, are the hundreds of thousands of short-term visitors who come through BWI each year. If the additional charge for a rental vehicle is kept within reason, most of these people won't notice it - although you can question the fairness of taxing them for county services they're not sticking around long enough to use.

Not surprisingly, the state officials running BWI loathe the idea of the county taxing the airport. They also don't want to see anything that puts them at a competitive disadvantage with the other airports in the Washington, D.C., area.

The measure would give the county permission to levy a tax on rental cars, and county officials take care to describe it as a "precautionary measure" - something to have in reserve if revenues flag.

But the record suggests that once something like this goes into the county's toolbox, it will be used, sooner or later. And most would bet on sooner.

Would such a tax make a difference to most residents? The measure includes exemptions designed to make sure any such levy escapes the attention of the voters. The tax would affect only short-term rentals, and would not include vehicles rented by residents awaiting repairs on their own cars.

The targets, in short, are the hundreds of thousands of short-term visitors who come through BWI each year. If the additional charge for a rental vehicle is kept within reason, most of these people won't notice it - although you can question the fairness of taxing them for county services they're not sticking around long enough to use...

...Not surprisingly, the state officials running BWI loathe the idea of the county taxing the airport. They also don't want to see anything that puts them at a competitive disadvantage with the other airports in the Washington, D.C., area.

We don't like tax increases, but this one would be less painful than nearly any other the county could impose. It's not a bad idea, provided it really is a last resort - and provided that county officials never forget that their first obligation, when facing a revenue shortfall, is cutting the budget, not imposing new taxes.
So, if I follow. The General Assembly should pass the tax...but the County Council should not enforce it...though the Capital thinks they will use it....though they are opposed to new taxes...though they doubt that this tax will do any damage....but it's still a good idea...though they should cut the budget first.

Confused?

Labels: , ,

0 Comments:

Post a Comment

<< Home

Site Feed