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U.S. travel taxes increase but service rates decline
August 27, 2009

A recent study has found that there has been a slight decrease in the actual dollars travelers in the U.S. pay in taxes for lodging, rental cars and meals.

Conducted by the National Business Travel Association (NBTA) and management provider Concur, the study examined car rental, hotel and meal taxes in the top 50 U.S. travel destination cities.

Despite the introduction of new travel taxes and the continual rise of discriminatory travel tax rates across the U.S., travel services in the country have been charging at a lower average rate compared to the prior year.

As the price of a car rental, hotel, or meal drops, the percentage-based taxes on those services drop. “While the report shows that the travel taxes paid have slightly declined, we know that the fall is due to the weak economy and not tax cuts” said NBTA Chair Fay Beauchine.

“In fact, tax rates increased and more were implemented across the United States to make up for government revenue shortfalls during the recession. “So when the economy recovers, travelers will take a double hit of rising prices and exploding taxes due to tax rate increases enacted during this downturn.”

Source :-http://www.etravelblackboard.us