Car rental, hotel taxes rising in US

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Car Rental News - 01/08/2013

 

Taxes on car hire and hotel stays are on the rise in the United States.

Taxes on car hire and hotel stays are on the rise in the United States.

According to a USA Today report published at the weekend, more municipal, state and regional governments are opting to hike tourism taxes in order to increase revenue. Car rentals and hotel prices have seen the sharpest rise, according to the report.

Among specific locations, those travelling through Northern Virginia saw a 5 per cent rise on the area’s “transient tax” beginning on 1 July. Likewise, lawmakers in Florida’s Orange County are looking to add a $2 per day fee on all rental cars.

Chicago visitors face the highest travel tax rates in the US, with the average tourist paying nearly $40.31 per day. Coming in second and third place respectively are the tourism hot spots of New York City and Boston.

California remains the single largest tourism revenue generating state at more than $105 billion annually, whilst Florida and New York trail in second and third place at $71.5 billion and 56.9 billion, respectively.

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