Summer Travel Tax Traps?
July 13, 2010
Nationwide, the average tax rate on car rentals at the top 50 business travel airports has reached a staggering 13.8%–including state, local and car rental taxes–according to the National Business Travel Association. Worse: At several airports the rate is much higher, including Boston’s Logan International (25%), Chicago O’Hare (23.7%) and Phoenix’s Sky Harbor International (21.9%).[…]
Flying? Be prepared to open your wallet.[…] Financially strapped, they are, in part, passing on the pinch from Uncle Sam, including a 7.5% ticket tax, a $2.50 per ticket “9/11 fee” to pay for transportation security and a $3.70 segment tax.
A movement on Capitol Hill this summer to keep car rental tax rates from rising further would seem to offer some hope for vacationers. A coalition including the NBTA, car rental companies, Ford, General Motors and the United Auto Workers is pushing a bill to end”discriminatory state taxes” for auto renters. The group complains that the taxes often finance non-travel related projects, like sports stadiums, and that they often affect locals as well as tourists.
The report they reference on states becoming more aggressive about discriminatory taxes on online travel companies is here.