27 May Higher Lodging Tax Rates in Several States!
Where lodging taxes are rising:
Last year, we let you know about the Peach State’s dirty little secret…it started costing a bit more to stay there on July 1, 2015. Five dollars per night here and there doesn’t seem like too much, but we know our clients. They’re usually extended stay folks, and for those road warriors that stay somewhere for months at a time, extra wallet drains really add up. Georgia’s not the only state cashing in on this lodging trend, either. Here are other states that recently boosted hotel taxes:
-Late last year, Mississippi also passed legislation for higher visitor taxes.
–Maine brought in 2016 with a small jump in taxation, from the previous year’s 8% to 9%.
-Two months ago, a law was passed in Oregon to double the state’s hotel tax. It’s still low, though, at 2%.
WHY lodging taxes are rising:
Why are state and city governments playing this cruel trick on travelers? NCPA Senior Fellow Pam Villareal explains: “[They] raise travel taxes because they are looking for more revenue without raising the taxes that the local electorates hate – sales taxes and property taxes. It is much easier to tax out-of-towners that are not using city and state services year round and don’t have as much skin in the game.”
Taxes are skyscraper-high in these cities!
According to Christopher Elliott, a prolific travel writer who was quoted in this Fortune article, you can pay up to 30% more in travel when you consider lodging taxes, which are steadily increasing. When we’re talking just reservation charges, though, here are the cities that cost tourists and business travelers the steepest fees, in top-down order:
- Portland, OR
- Boston, MA
- Indianapolis, IN
- Minneapolis, MN
- Chicago, IL
- New York, NY
- Washington D.C.
- Kansas City, KS
- Charlotte, NC
- Milwaukee, MN
Bring it on!
We will continue to update you about when and where the prices go up and keep sharpening our negotiation pitch. We can’t control state or local legislation, but we work with what we have and do what we’re experts at…managing expenses and bringing you well controlled, exceptionally organized lodging, even at a moment’s notice.