Originally Posted by
saneman
I am curious why they apply taxes on the non discounted rate. It's not like the company gets to collect profit on that as it has to be paid to the authorities. If Hertz doesn't collect as someone here says they don't, why would the rule be different for a different rental agency like Thrifty.
I think it's because Thrifty considers the BCFD certificate to be a form of payment--i.e., if your base rate is $60, then the BCFD certificate acts as a $60 gift certificate. Hertz, OTOH, counts the award as a discount--that is, if your base rate is $80, then you get an $80 discount off of your rate, which makes your rate in effect $0, and the 30% tax on $0 is $0.
I expect some things to harmonize over time as Hertz and DTAG integrate more and more of their systems.