GF Blue logo
MenuMENU
SearchSEARCH

No Rental Tax for Flexcar — For Now

SEATTLE – The State Department of Revenue has agreed to defer the car-rental tax it said it would begin imposing on Flexcar, the car-sharing company.

by Staff
October 10, 2007
1 min to read


SEATTLE – The State Department of Revenue has agreed to defer the car-rental tax it said it would begin imposing on Flexcar, the car-sharing company, the Seattle Times reports. A day after the department announced that Flexcar would have to pay a 9.7-percent car-rental tax, Gov. Christine Gregoire sent a letter to the department suggesting that Flexcar should not be taxed.

While Gregoire stopped short of ordering the department not to collect the tax, she said in her letter, “I believe our tax code should act as an incentive, not a hindrance, to innovation.”

Ad Loading...

Last July, the Revenue Department sent an advisory that said car-sharing organizations, such as Flexcar, are providing rental cars and are required to collect the car-rental tax. In King County, where virtually all Flexcars in the state operate, that would mean a 9.7-percent increase to the cost of the car, adding about a dollar to the typical $10 hourly charge members pay.

Flexcar complained that the tax was unfair because it was targeting local residents who already pay taxes, and that it punishes a company trying to get cars off the road and people into buses, according to the Seattle Times. There is no decision yet on how the controversy may be resolved, but it may include legislation that exempts car-sharing organizations from the tax.

Topics:Operations

More Operations

A graphic of fleetgap workshops and fleet images.
Operationsby Nichole OsinskiJune 26, 2026

The FleetGap Initiative: Transitioning from Military to Civilian Fleet Roles

FleetGap is working to build the missing bridge between service members preparing for civilian careers and fleet employers facing workforce shortages.

Read More →
a GRAPHIC OF A TABLET WITH a VEHICLE AND GF LOGO.
Operationsby Nichole OsinskiJune 23, 2026

How Government Fleets Are Turning Connected Vehicle Data Into Practical Decisions

Public sector fleets are using connected technology to improve visibility, but the bigger challenge is building the processes to act on the information it provides.

Read More →
A RoadFlex graphic for fleets.
Operationsby News/Media ReleaseJune 16, 2026

RoadFlex Brings Fuel Tax Compliance and Audit-Ready Reporting to Government, Public Works Fleets

New capabilities aim to help public-sector and public works fleets streamline fuel tax exemptions, reclamation, reconciliation, and audit-ready reporting.

Read More →
Ad Loading...
2026 public fleet hall of fame inductees
Eventsby Staff WriterJune 10, 2026

2026 Public Fleet Hall of Fame Inductees Honored

This year's class includes leaders whose work has helped shape the public fleet industry.

Read More →
2026 GFX Honors Ceremony
Eventsby Staff WriterJune 10, 2026

David Renschler Receives 2026 Legendary Lifetime Achievement Award

Andy Campbell of Sourcewell, which partnered with Government Fleet in presenting the award, recognized Renschler.

Read More →
Ross Jackson Jr winning public sector fleet manager of the year
Eventsby Staff WriterJune 10, 2026

Ross Jackson Jr. Named 2026 Public Sector Fleet Manager of the Year

His leadership, innovation, and commitment to excellence earned him one of the industry's top honors.

Read More →
Ad Loading...
 the GFX main stage.
Operationsby Staff WriterJune 4, 2026

Public Fleet Professionals Set to Converge as GFX Gets Underway

Known as the largest gathering of public fleet professionals in the nation, GFX will feature in-depth training sessions, emerging fleet technologies, and access to leading suppliers and service providers.

Read More →
A blueprint with tool graphics and text about technicians.
Operationsby Nichole OsinskiJune 1, 2026

The Technician Pipeline: Finding, Keeping, and Promoting Techs Within the Operation

A look at where to find good talent, what fleets are doing to incentivize those techs to stay within the fleet, and what promotion looks like for a technician within the public sector.

Read More →
a youtube graphic of fleet images.
OperationsJune 1, 2026

5 Public Fleet Stories Worth Revisiting Before GFX | The May Dispatch

Public fleet leaders are being asked to prepare for more, communicate better, and make decisions that hold up under pressure.

Read More →
Ad Loading...
White cargo van driving on a paved road with trees and greenery in the background.
SponsoredJune 1, 2026

Drive More Profit with Greater Fleet Uptime

Fleet downtime costs money. JASPER helps keep vehicles on the road with quality remanufactured components, fast nationwide delivery, and reliable solutions that boost uptime and profitability.

Read More →