‘Cash-strapped cities’ pile on the taxes for travelers
Business travelers are picking up for the bill for bailing out cash-strapped cities, according to the Global Business Travel Association (GBTA).
The GBTA says taxes levied specifically on travel-related services in major cities increased the total tax bill for a traveler by 58% this year.
The association blames the rise on ‘cash-strapped cities seeking to reduce debt’ and is warning the economy will suffer if there are further tax increases, such as the planned TSA rise.
GBTA executive director and COO Michael W. McCormick said: "Unfortunately, it’s not just state and local governments that see business travelers as their cash cow – the federal government is getting in the game.
"This week, Congress may consider a doubling of the TSA tax.
"Instead of driving TSA efficiencies that curb spending, Congress’ solution is to double the amount travelers pay. Road warriors strengthen the economy, create jobs and drive economic security.
"Yet governments insist on treating travelers like their ATM. These types of punitive travel taxes will ultimately push business travelers to stay home, and we all pay when governments take a short-sighted approach that raises the costs for business travel."
Rising tax rates, such as increased car rental taxes have increased overall travel taxes in cities where travelers already face some of the highest total tax burdens in the country.
For example, in Minneapolis recently increased its Motor Vehicle Rental Tax by 3%, while Indianapolis added 2% to its Auto Rental Excise Tax.
See separate story for details of U.S. cities with the highest and lowest traveler taxes.
Lisa
Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.
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