GF Blue logo
MenuMENU
SearchSEARCH

For Flexcar, No Way Around New Tax

SEATTLE – Thousands of King County residents who use the Flexcar car-sharing service will be charged an extra 9.7-percent rental car tax after the state Department of Revenue determined that car-sharing services were essentially rental car businesses.

by Staff
September 12, 2007
2 min to read


SEATTLE – Thousands of King County residents who use the Flexcar car-sharing service will be charged an extra 9.7-percent rental car tax after the state Department of Revenue determined that car-sharing services were essentially rental car businesses, according to the Seattle Post-Intelligencer. The tax, which Flexcar will start charging customers Oct. 1, could put the brakes on Flexcar’s rapid growth in Seattle, since Flexcar users already pay nearly nine-percent sales tax.

The Seattle-based company, which has almost 20,000 accounts in the area, is on track to double the size of its Seattle fleet this year to 400 cars. Flexcar users pay an annual membership fee (which is waived depending on use), reserve a time slot online or by phone, and then pay an hourly or daily rate to use the company’s vehicles, which are parked throughout the city.

Ad Loading...

The company said its members should be exempt from the tax because they are mostly local residents and the company’s model differs from that of traditional rental car companies. But in an advisory Jul. 20 sent to Flexcar, the state Department of Revenue said, “Carsharing organizations are providing ‘rental cars’ and are required to collect the rental car tax along with the retail sales tax from their members/customers.”

Flexcar notified its customers of the impending tax in its September newsletter. The company’s Seattle general manager, Jamie Cheney, organized a petition online urging Washington state and King County decision makers to exempt the company from local rental car taxes.

Flexcar’s growth has accelerated recently. During the last three weeks of August, so many customers signed up for Flexcar that new members across the U.S. had to wait up to two weeks to receive access keys to the company’s fleet, rather than the customary couple of days, according to the Seattle Post-Intelligencer.

Ironically, King County -- which helped start Flexcar in 1999 -- will receive some of the proceeds of the new 9.7 percent tax. The county levies a one-percent tax on car rentals, which benefits its general fund. A little more than two percent also goes to the county in order to pay for Safeco Field, and 0.8 percent goes to the Regional Transit Authority. The state levies a 5.9-percent tax on car rentals.

King County Executive Ron Sims insisted that car sharing was not car renting and said Thursday that the county would go to the legislature to exempt car-sharing companies from the rental car tax.

Topics:Operations

More Operations

a youtube thumnail with hands.
Operations•October 22, 2026

Who Deserves Fleet Recognition and What Could You Teach at GFX?

Who helped shape your fleet career, and what have you learned that could help someone else?

Read More →
A youtube thumbnail with spooky elements.
Operations•October 22, 2026

What’s Haunting Public Sector Fleets?

Public sector fleet challenges rarely happen in isolation, and addressing one often means understanding how it connects to another.

Read More →
A cheat sheet thumbnail with images of a checklist.
Operations•October 16, 2026

Is Keeping Older Fleet Vehicles Really Saving Money?

Is keeping vehicles longer saving money, and what happens when a diagnostic test points to the wrong fix?

Read More →
Ad Loading...
A graphic with vehicles and fleet managers.
Operations•October 16, 2026

How Smart Fleet Strategy Can Help Local Government Agencies Do More with Less

Keeping a vehicle longer may ease this year’s budget, but what does it cost the next one? A closer look at fleet decisions can reveal opportunities to reduce spending while protecting essential services.

Read More →
linkedin logo on a computer driving people towards LinkedIn for Government Fleet
Operations•by Staff Writer•October 16, 2026

Connect with Government Fleet on LinkedIn

From industry news and fleet management strategies to conversations with peers, Government Fleet's LinkedIn page offers public-sector fleet professionals another way to stay informed and connected.

Read More →
RTA graphic announcing winner.
Operations•by News/Media Release•October 15, 2026

Town of Queen Creek Named Most Successful Fleet Award Winner of Inaugural RTA Fleet Success Awards

Five fleets were honored at RTA Connect 2026 in Chicago for excellence across resource efficiency, intentional culture, risk management, and stakeholder satisfaction.

Read More →
Ad Loading...
Chevin whitepaper cover A buyer's guide to fleet management software
Sponsored•October 14, 2026

A buyer's guide to fleet management software in 2027

Buying fleet management software in 2027 means looking beyond features and price. As fleet operations, technology and expectations evolve, this guide explores what today’s fleet professionals should consider when choosing a system that can deliver value now and adapt to what comes next.

Read More →
A youtube cheat sheet graphic.
Operations•October 11, 2026

Hazard Alerts, Fleet Car Sales Rise and a New Shuttle Concept

Fleet car sales doubled, but the bigger picture tells a different story in this week’s roundup.

Read More →
an image with let the data drive text overlay
Operations•by Jeanny Abraham•October 9, 2026

How St. Johns County Turned Fleet Data Into Better Replacement Decisions

St. Johns County, Florida, had fleet data, but turning it into reliable decision guidance was another matter. Instead of starting over with a new fleet management system, the county connected existing tools and built a scoring system that gives managers an objective look at fleet health.

Read More →
Ad Loading...
A graphic of passes for Fleet Forward.
Operations•by Staff Writer•October 6, 2026

Fleet Forward Conference Introduces One-Day Passes for 2026 

New one-day registration lets fleet professionals attend Tuesday, Wednesday, or Thursday, with passes available for $249.

Read More →