SOURCE: Avis Budget Group, Inc.

Avis Budget Group, Inc.

Avis Budget Group, Inc.

June 24, 2009 18:23 ET

New Jersey-Based Car Rental Companies Comment on State's Proposed Car Rental Excise Tax

PARSIPPANY, NJ and PARK RIDGE, NJ--(Marketwire - June 24, 2009) - Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer, and Mark P. Frissora, Hertz Global Holdings Chairman and Chief Executive Officer, today issued the following statement in opposition to an excise tax on car rental transactions that has been included in New Jersey Senate Bill 2299/Assembly 4048:

"While we understand the need for stimulus legislation during these difficult times, a tax on Avis, Budget and Hertz -- all of which are headquartered in New Jersey -- is completely contrary to the spirit and intent of stimulus. A new car rental tax will hurt, not help, our businesses at a time when we are all struggling to keep jobs in New Jersey. We call upon the legislature to withdraw the tax from the bill."

Frequently referred to as the New Jersey Economic Stimulus Plan of 2009, the bill primarily focuses on tax reform and enhancing municipalities' ability to finance economic development projects. However, the bill also includes a "stealth" provision allowing certain municipalities to impose up to a 5 percent excise tax on rental transactions.

Car rental customers in New Jersey currently pay a special $5-per-day state tax, on top of the standard sales tax. As an example, New Jersey's proposed excise tax would increase the total tax rate for Newark Airport to more than 30 percent on a $46 daily car rental.

About Avis Budget Group, Inc.

Avis Budget Group, Inc. (NYSE: CAR) is a leading provider of vehicle rental services, with operations in more than 70 countries. Through its Avis and Budget brands, the Company is the largest general-use vehicle rental company in each of North America, Australia, New Zealand and certain other regions based on published airport statistics. Avis Budget Group is headquartered in Parsippany, N.J. and has approximately 25,000 employees. For more information about Avis Budget Group, visit www.avisbudgetgroup.com.

About Hertz

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc. (NYSE: HTZ), is the world's largest general use car rental brand, operating from approximately 8,100 locations in 144 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 69 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand. In addition, the Company has licensee locations in cities and airports in Africa, Asia, and the Middle East. In 2008, the Company launched Connect by Hertz, entering the global car sharing market in London, New York City and Paris. Hertz also operates one of the world's largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers through approximately 350 branches in the United States, Canada, China, France and Spain.