Best and Worst Cities for Travel Taxes: New NBTA Study

Sales taxes are one thing, but tag on car rental, hotel, and meal taxes and meeting attendees can rack up quite an addition to the bottom line. The National Business Travel Association Foundation and Concur, the Redmond, Wash.–based provider of spend-management services, have produced their annual report on taxes and fees on travel services, revealing the U.S. cities with the highest and lowest tax burden.

Here are the results for central city locations, factoring in general sales taxes and travel taxes:

LOWEST
1. Fort Lauderdale, Fla.
2. Fort Myers, Fla.
3. Portland, Ore.
4. Detroit
5. Honolulu

HIGHEST
1. Chicago
2. New York
3. Boston
4. Seattle
5. Minneapolis

NBTA Executive Director and COO Michael W. McCormick argues that companies are unfairly burdened by travel taxes and fees, the proceeds from which often fund local projects that are unrelated to the travel industry. “The business and travel communities are increasingly concerned about the negative impact that taxes targeting travelers have on the greater travel industry and local economies,” he said in a statement. “It is unacceptable that visitors, whose general tax dollars can help to keep a community afloat in difficult economic times, are forced to pay so much more taxes and fees to fund projects unrelated to the services they purchase. On average, the fees targeting travel services increase the tax burden by more than half, and in the worst cases, by up to 144 percent.”

The full report on travel taxes is available to Concur clients and NBTA members.

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