State senators took up House Bill 2575 that would require car rental companies to pay a 4.5% tax, based on the general excise tax, on imported or purchased cars — a steep hike up from the 0.5% rate companies currently pay.
The rental car industry said the hike would force them to pass costs on to customers. To learn more, HPR spoke with Don Lefeve, president and CEO of the American Car Rental Association, about his concerns.
The bill was deferred on Wednesday, essentially stalling the measure this session. Lefeve said a companion Senate bill did not make it through crossover.
This story aired on The Conversation on March 25, 2026. The Conversation airs weekdays at 11 a.m.
