Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, July 31, 2015
Travel Taxes: The Hidden Trifecta
By NCPA @ 11:50 PM :: 5316 Views :: Taxes, Tourism

Travel Taxes: The Hidden Trifecta

From NCPA, July 31, 2015

In recent years, in a drive toward more revenue, officials at every level of government have raised a trifecta of travel-based taxes dramatically. As a result, travelers bear large effective tax burdens that can amount to 30 percent higher costs in high-demand areas like New York City or Chicago.

In an analysis of cross-state tax levels, Jacob Kohlhepp, a research associate with the National Center for Policy Analysis found three main categories of taxation.

  • Hotel occupancy taxes: 22 states levy a statewide tax on lodging ranging from 3 to 13 percent. Cities also levy lodging taxes, with rates as high as 14 percent.
  • Car rental taxes: research suggests car rental taxes lead to 25 percent more expensive rentals within the area of the tax.
  • Airline taxes: Federal taxes on airline travel can amount to a near 30 percent surcharge on flights.

An average trip from Los Angeles to New York City will result in a 17 percent tax rate on all expenses, with more than half of this burden travel specific taxes that discriminate against travelers.

These taxes have the following effects:

  • Travel taxes eat into the budget tourists set for their vacation trips, which can result in lower revenue from excise and sales taxes on souvenirs.
  • Tax hikes in some geographic areas have been observed to lower tourism levels.
  • The demand for air travel is sensitive to price, and thus sensitive to taxation, especially on short vacation trips.

While travel taxes may seem politically attractive, it is clear that they have an economic cost.

Source: Jacob Kohlhepp, "Travel Taxes: The Hidden Trifecta," National Center for Policy Analysis, July 30, 2015.

  *   *   *   *   *

Hawaii TAT: Empirical Proof

...Hotel occupancy taxes also appear to eat into the budget tourists set for their vacation trips. Such an effect was empirically observed in Hawaii in 2013, when a hike in the transient occupancy tax raised the cost of hotels for all tourists. The result was a nearly 3.4 percent fall in general excise tax revenue, as tourists appeared to spend less money on other attractions and gifts. Such a result follows from the fact that travel often requires incurring lodging expenses, while consumption of souvenirs is optional....  (pg3)

 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT