gercohen

I flew ATL-CHA on Saturday, renting a Hertz car. I retruned the car Sunday, and noticed that for the 47 SkyMiles Hertz gave, they "passed along" the 7.5% Federal Excise Tax that was charged on their purchase of the SkyMiles from Delta. The charge on the bill was five cents. I called customer service and said that this nickel and dimeing was really poor customer relations, and the rep told me that Hertz decided to pass this along because "otherwise they would have to raise everyone's rates by two or three dollars" (clearly this was a canned answer. I asked how would them absorbing a five cent tax raise rates by two or three dollars, she had no answer. I suggested that it was rather poor to be passing along a tax on a freebie. I asked her why Hertz did not just pass along the entire 60 cents it paid Delta for the SkyMiles. She again had no response. Any thoughts on this one??

Rudi

I think you have here a case for a small court claim - as I understand, Hertz has not yet entered this passing along of the 5 cents FedTax in the text of their general renting terms and they have no right to aks that money from you - you didn't sign any agreement on that. So I suggest fight for your 5 cents - win - and share the 5 cents you won with me for my advice.

pgupta011

I think that you should be complaining to your Congresspeople about the tax that they imposed. One way or the other we are going to have to pay the tax.

gercohen

I've written to Hertz using their e-mail response system at http://www.hertz.com pointing out that I never agreed in advance to pay this charge. Thanks for the suggestions.

pgupta011

That is a neat concept. If only the Federal govt also required my advance agreement for me to pay my Federal taxes!

Rudi

the representatives you did elect did agree (federal taxes).

pgupta011

Honestly, if the car rental company had tacked on five cents to my last rental, it would be a teeny weeny drop in the bucket compared to the 20% or so tax tacked on to the bill. These taxes have really become outrageous, often there are multiple tax items with fancy names. These taxes are largely levied on outsiders, not the people who elected the persons imposing the tax.

Justin

I think the entire practice of adding taxes and surcharges is a form of consumer deception. Just the other day, my friend from Belgium was commenting on how the prices in the U.S. are before taxes, whereas, the prices in Europe always include taxes. I think that all products/services should include taxes and other charges in the quoted or advertised price. An airline ticket now has sales tax, international departure tax, security surcharges, and landing fees. I think even one airline tried to charge a fuel surcharge but was sanctioned by either the FAA or FTC! As it is, we must pay taxes on our FF miles when we redeem them; I just paid $52 for a "free" ticket that I obtained with my FF miles (from the tickets I paid for myself). When I was departing Canada, they wouldn't let me board until I paid $10 for the privilege of leaving Vancouver - this was never mentioned when I bought my ticket.

If there is anything Congress could do, it should be to end the deception with all these add-on charges!

And with further thinking, I think I will forward this link to my Congressman! Wish me luck!!! I will let you know what his response is.

Rudi

a apologize for giving a comment from Europe:

In europe there is always the same percentage of sales-tax in one country - and so it is easy to list prizes with sales-tax-included.

In the US you have different percentages from State to State (and if I buy from outside, there is no sales-tax at all). That's why - I guess - including sales-taxes in price-lists for companies doing business outside one state/nationwide/universal-wide (as airlines do) is not very practicable.

But it may well be that I miss some important points about this - do I?

Rudi

airport-taxes: I don't like to defend taxes/fees.

They (airlines) just can't always include all the fees in tickets.

Example: Which fee should the include when I have an around-the-world-ticket with open segments, or if I have a visit USA-pass with open flight-coupons, or what shall they do, if taxes are changed before you fly (unfortunately changing means increasing ...).

Rudi

Difference Hertz mileage-tax practice to Others (includes airports, etc):

Hertz charges here (tax-) costs they had to pay when they BOUGHT items (the miles) you the final costumer consumes (buy now from them).

Others have those costs (their buying costs) included in their price bases before sales-tax - they only add now (as Hertz does also in addition) the sales tax which is owned because of this (renting) SALES-act.

gercohen

Some of you have missed my point. The often exorbitant local sales tax that Hertz and other pass along is a tax on the transaction between Hertz and me, and ought to be passed along to me, likewise the airport concession fee. Airlines pass along the 7.5% excise tax, the PFC and the $1 per segment fee because it is a tax on the transaction between the airline and me. However, passing along the federal excise tax on the Skymiles Hertz purchased is a tax imposed on a transaction between Delta and Hertz. If Hertz can pass this along to me, why not also pass along a percentage of the sales tax Hertz paid on the car they bought to rent to me, or pass along part of the water bill that the City of Chattanooga charged Hertz to wash the car they rented to me.

pgupta011

The distinction seems thin to me. Suppose the tax authorities decide to levy a huge annual registration fee on the rental cars, would you suggest that the rental car company go bankrupt or would you suggest that they increase the prices accordingly?

I still feel that you should be more outraged at 1) Congress for levying the 7.5% tax, rather than at Hertz for passing it and at 2) the outrageous local taxes (20-25% is not uncommon now).