Car Rental Surcharge Going out the Window?

August 1, 2012
By

A few years back, the city fathers, led by the late Councillor at Large and former mayor George Colella, implemented a tax on car rentals originating in Revere with the stipulation that that tax be put toward paying for a new public safety facility.

The new police station, built at a cost in excess of $10 million, was financed by bonds in that amount whose interest and principal are paid by the rental car tax.

About $800,000 a year comes into the city treasury every year and then goes out to pay for the new police station.

All of this is about to change. Revere will be left with a new and expensive responsibility.

The Federal Government is requiring all rental car groups in or within an airport area to be housed at the airport in order to cut down on emissions. With all the rental cars located in one area, there will be fewer busses transporting people to and from rental centers outside of the airport.

Massport is now preparing an area known as a Consolidated Rental Facility at Logan Airport where all the rental cars in Revere will shortly be housed.

This will be a tremendous loss of revenue for the city at a time when it can ill-afford to lose any of its precious revenues.

Trying to stem the loss is Representative Kathi Ann Reinstein and her boss, Revere Representative and Speaker of the House Robert DeLeo.

While nothing is yet etched in stone, Reinstein and DeLeo will apparently be attempting to make up this loss of revenue with the city by adding supplemental revenues for the city from state funding or to preside over a compromise with officials from Massport, who should offer the city compensation for the income it is losing.

One way or the other, Revere must be taken care of in this instance.

To do nothing for the city when it is being robbed of its legitimate income is a crime.

  • Voter909

     In Stone, its almost finished, it looks like Orlando airport. this stinks!! it seems that elected officials are Surprised, what did they think what was being built there?  Supplemental revenues mean we pay for it in higher Taxes

  • ChrisTheElder

    It was a crime when the predatory tax was levied on the car rental company to begin with – easy pickings to tax something completely unrelated to the benefit of the facility. Of course, taxing the constituents who use the facility might have been too hard and voted down. Now, this bad tax policy is coming home to roost. When you pick on a single entity for funds, that single entity might move or go out of business. It moved. I heard the legislature actually looked for ways to tax the company when it would have moved to the new facility, not even in the city limits! Good grief.

  • Cliff Webb

    One way or the other, Revere must be taken care of in this instance?
    Really?
    Why? Why must Revere ‘be taken care of’?
    Because they came up with an idea to gouge a business the city of Revere did not invest a dime in to building or creating the city grifters feel entitled to compensation? That is the type of thinking that has garnered this city the reputation it has.
    Here is one idea. Tax the Revere elected officials at 50% on their income along with what ever other gratuity they receive from local business by the way of protection money or graft.
    Wild guess on my part, but if one were to audit their monthly expenses you could probably find about 10% per month of what is necessary to pay for the expense.

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