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Originally Posted by darben
Here in New York the price quoted by car rental companies for prepaid gas does NOT include the up to 26% taxes and fees imposed by the various governments. The car rental companies are required to add the 26% to all items on the bill. This includes prepaid gas. Thus$2.50 a gallon gas is really $3.00 to you. While your at it be aware the insurance fees get this tax too.
Bet most states are like that because it is an easy way to raise revenue without the locals complaining.
Although I never purchase prepaid gas, I do rent cars in New York State several times a year, and the tax rate is 13.625% when I rent in Nassau County, and about the same when I rent in Manhattan. The supplemental liability insurance is definitely
not taxed.
I assume that there may be additional fees (but probably no additional taxes) if one rents from certain airport locations in New York, and those additional fees, combined with the taxes, may add up to a combined burden of 26% at those particular locations. But there is no way that New York
taxes car rentals at anything close to 26%.