Short-term rentals tax-free in BC

← Previous Article | Index | Next Article →

Car Rental News - 27/03/2008


Are shared cars the same as rentals?

If you’re planning a trip to Canada’s most westerly province of British Columbia, a small park awaits those who wish to rent a car for a short period, and they have car-sharing schemes like the popular Zipcar to thank for it.

The British Columbia government made the decision to institute a tax waiver for those hiring cars for less than 8 hours as well as car-sharing firms, exempting them from the provincial tax that was until charged at the moment one rented a car. The decision was made only days after BC’s neighbouring US State of Washington declared the opposite.

Other regions in North America who will exempt car-sharing firms from the same taxes as car hire companies are the US states of California and Oregon. The debate continues whether car-sharing is equivalent to car hire, and whether car share firms like Zipcar should really be exempt from taxes paid without question by companies like Hertz, Budget and Avis. Zipcar and companies like it make the claim that their services are an initiative to see less cars on the roads, and for that cause, renters should be given a small break for their willingness to part with a bit of convenience to contribute to the greater good.

← Previous Article | Index | Next Article →

Related Articles