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Economic Impact Fast Facts – Tourism Taxes
Travelers often pay higher taxes than other retail consumers to pay for projects that benefit a local area but for which the local citizens do not want to pay. National averages for travel taxes are:
| Airline |
(Domestic) |
9% plus $1 for each domestic segment |
| (International) |
$12 international arrivals fee, $12 international departure fee, $6.50 Customs Service user fee, $6 Immigration and Naturalization Service user fee, $1.45 Agriculture Dept. fee |
| Airport |
$3 passenger facility charge in most cities |
| Gas |
$0.44 a gallon |
| Restaurant |
7.29% |
| Hotel |
12.36% |
Auto Rental
Base Sales Tax |
8.4% |
| Airport Concession Fee |
9.75% |
| Off-Airport Fee (Rate) |
7.91% |
| Off-Airport Fee (Fee) |
$2.43 |
| Per Rental Surcharge (Rate) |
3.17% |
| Per Rental Surcharge Fee |
$6.56 |
| Per Day Surcharge (Fee) |
$1.60 |
|
|
|
Travel Taxes in America's Top 50 Destinations in 1998 - Summary
| |
Auto Rental Surchage |
| |
Hotel/
Lodging Tax |
Restaurant
Tax |
Gasoline Tax Per Gallon |
Auto Rental
Base
Sales Tax |
Airport Concession Fee |
Off Airport Fee |
Per Day |
Per Rental |
Per Rental |
| |
|
|
|
|
|
|
|
|
|
| Anaheim |
15.00% |
7.75% |
$0.369 |
7.75% |
|
|
$1.275 |
|
|
| Atlanta |
14.00% |
7.00% |
$0.259 |
6.00% |
10.00% |
8.00% |
|
3.00% |
|
| Atlantic City |
12.00% |
6.00% |
$0.289 |
6.00% |
10.00% |
10.00% |
|
|
|
| Austin |
13.00% |
8.25% |
$0.384 |
10.00% |
10.00% |
8.00% |
$0.85 |
|
|
| Baltimore |
12.50% |
5.00% |
$0.419 |
11.50% |
10.00% |
|
|
|
|
| Boston |
12.15% |
5.00% |
$0.394 |
5.00% |
10.00% |
|
|
3.55% |
$10.30 |
| Charlotte |
12.00% |
7.00% |
$0.410 |
8.00% |
|
5.00% |
|
|
|
| Chicago |
14.90% |
9.75% |
$0.484 |
18.00% |
|
|
|
|
$2.75 |
| Cincinnati |
10.50% |
6.00% |
$0.404 |
6.00% |
9.00% |
|
|
3.00% |
|
| Cleveland |
14.50% |
7.00% |
$0.404 |
7.00% |
10.00% |
8.00% |
|
|
$10.70 |
| Columbus |
15.75% |
5.75% |
$0.404 |
5.75% |
10.00% |
|
|
|
|
| Dallas |
13.00% |
8.25% |
$0.384 |
10.00% |
10.00% |
8.00% |
$1.21 |
|
|
| Daytona |
11.00% |
6.00% |
$0.429 |
6.00% |
10.00% |
|
$2.05 |
|
|
| Denver |
11.80% |
7.80% |
$0.404 |
11.30% |
|
|
$2.98 |
|
|
| Detroit |
14.00% |
6.00% |
$0.374 |
6.00% |
9.50% |
|
|
2.00% |
|
| Ft. Lauderdale |
11.00% |
6.00% |
$0.449 |
6.00% |
10.00% |
$3.10 |
$2.05 |
|
|
| Honolulu |
10.00% |
4.00% |
$0.344 |
4.17% |
|
|
$0.25 |
|
|
| Houston |
17.00% |
8.25% |
$0.384 |
15.00% |
10.00% |
6.00% |
$1.75 |
|
|
| Indianapolis |
11.00% |
6.00% |
$0.334 |
9.00% |
|
7.00% |
|
2.00% |
|
| Jacksonville |
12.50% |
6.50% |
$0.419 |
6.50% |
10.00% |
10.00% |
$2.05 |
|
|
| Kansas City |
12.10% |
8.35% |
$0.354 |
6.85% |
9.00% |
|
|
2.29% |
|
| Knoxville |
13.25% |
8.25% |
$0.398 |
8.25% |
10.00% |
|
|
2.00% |
|
| Las Vegas |
9.00% |
7.00% |
$0.522 |
7.00% |
10.00% |
10.00% |
|
6.00% |
|
| Los Angeles |
14.00% |
8.25% |
$0.374 |
8.25% |
|
8.00% |
$1.275 |
|
|
| Memphis |
13.25% |
8.25% |
$0.398 |
8.25% |
8.00% |
|
|
2.00% |
|
| Miami |
12.50% |
8.50% |
$0.480 |
6.50% |
9.00% |
|
$2.05 |
|
|
| Minneapolis |
12.00% |
10.00% |
$0.384 |
12.70% |
8.50% |
$1.75 |
|
3.00% |
|
| Nashville |
12.25% |
8.25% |
$0.398 |
8.25% |
10.00% |
|
|
2.00% |
|
| New Orleans |
11.00% |
9.50% |
$0.384 |
10.75% |
10.00% |
|
|
3.00% |
|
| New York |
13.25% |
8.25% |
$0.411 |
8.25% |
|
|
|
5.00% |
|
| Norfolk |
11.50% |
10.00% |
$0.359 |
8.00% |
|
|
|
|
|
| Oakland |
11.00% |
8.25% |
$0.374 |
8.25% |
|
|
$1.275 |
|
|
| Orlando |
11.00% |
6.00% |
$0.419 |
6.00% |
10.00% |
10.00% |
$2.05 |
|
|
| Philadelphia |
13.00% |
7.00% |
$0.443 |
7.00% |
|
|
$2.00 |
2.00% |
|
| Phoenix |
10.35% |
6.80% |
$0.374 |
8.80% |
10.00% |
7.00% |
|
5.00% |
$2.50 |
| Pittsburgh |
14.00% |
7.00% |
$0.447 |
7.00% |
|
8.00% |
$2.00 |
2.00% |
|
| Portland |
9.00% |
0.00% |
$0.454 |
10.00% |
10.00% |
|
|
|
|
| Raleigh |
12.00% |
7.00% |
$0.410 |
13.00% |
|
10.00% |
|
|
|
| Reno |
9.00% |
7.00% |
$0.532 |
7.00% |
10.00% |
7.00% |
|
6.00% |
|
| Riverside |
11.00% |
7.75% |
$0.484 |
7.75% |
|
|
$1.275 |
|
|
| Sacramento |
12.00% |
7.75% |
$0.439 |
7.75% |
|
10.00% |
$1.275 |
|
|
| San Antonio |
15.00% |
7.75% |
$0.384 |
10.00% |
9.00% |
|
$0.85 |
|
|
| San Diego |
10.50% |
7.75% |
$0.439 |
7.75% |
|
7.00% |
$1.275 |
|
|
| San Francisco |
14.00% |
8.50% |
$0.449 |
8.25% |
|
7.00% |
$1.275 |
|
|
| San Jose |
10.00% |
8.25% |
$0.447 |
8.25% |
|
8.00% |
$1.275 |
|
|
| Seattle |
15.60% |
8.60% |
$0.414 |
18.30% |
10.00% |
4.00% |
|
|
|
| St. Louis |
14.10% |
8.35% |
$0.354 |
5.975% |
10.00% |
|
|
3.27% |
|
| Tampa |
11.75% |
6.75% |
$0.429 |
6.75% |
10.00% |
|
$2.05 |
|
|
| Washington DC |
13.00% |
10.00% |
$0.384 |
8.00% |
10.00% |
|
$2.00 |
|
|
| West Palm |
10.00% |
6.00% |
$0.479 |
6.00% |
10.00% |
8.00% |
$2.05 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Average |
12.36% |
7.29% |
$0.443 |
8.40% |
9.75% |
|
$1.60 |
3.17% |
$6.56 |
Reinvestment of Hotel Taxes
Every major travel destination in the U.S. levies some kind of hotel tax, which is paid primarily by travelers who visit that city. In every case at least some of that revenue goes into the city's general fund. However, some cities have wisely chosen to reinvest most of that revenue into tourism development and promotion, such as convention centers, cultural programs, welcome centers and travel-related marketing. On average, 37% of city hotel tax revenue is reinvested in travel and tourism.
TOP TEN CITIES
Percentage Hotel Taxes Reinvested in Travel & Tourism
| 1. |
Reno |
77.8% |
| 2. |
Houston |
67.6% |
| 3. |
Riverside (tie) |
60.0% |
| 3. |
San Francisco (tie) |
60.0% |
| 4. |
Las Vegas |
59.8% |
| 5. |
Dallas |
57.7% |
| 6. |
Detroit |
57.1% |
| 7. |
San Antonio |
54.7% |
| 8. |
Indianapolis |
54.6% |
| 9. |
St. Louis |
51.4% |
| 10. |
Austin |
50.0% |
WHERE THE MONEY GOES:
Top Ways That Cities Spend Their Hotel Tax Revenue
(based on number of cities)
| 1. |
General Fund |
| 2. |
Convention & Visitors Bureau |
| 3. |
Convention Facilities |
| 4. |
Other Travel Related Programs |
| 5. |
Sporting Complexes |
| 6. |
Arts/History/Culture |
| 7. |
State Travel Office |
| 8. |
Special Events |
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