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Traveling This Summer? Watch Out for Travel Taxes and Fees

Written by Teri Cettina on July 29, 2014 in Tax  |   No comments

Chances are good that when you budgeted for your summer getaway, you remembered to build in the price of your hotel, the charge for your rental car, and the estimated cost of your meals. But what about your hotel tax? Extra rental car fees? State…

traveling-this-summer-watch-out-for-travel-taxes-and-fees

Chances are good that when you budgeted for your summer getaway, you remembered to build in the price of your hotel, the charge for your rental car, and the estimated cost of your meals.

But what about your hotel tax? Extra rental car fees? State and local taxes for restaurant meals? Until you actually arrive at your destination and sign for your bills, these fees are often invisible. However, these extra expenses can really pile up, and they can vary significantly depending on the city you’re visiting.

The Global Business Travel Association (GBTA) reported that travel fees could now increase your travel bill by as much as 58 percent in the cities with the highest travel taxes. Those include Chicago, Ill., in first place; New York, N.Y.; Minneapolis, Minn.; Kansas City, Mo.; and Indianapolis, Ind.

State and local governments generally use travel taxes in order to increase revenues. Rather than hitting up local residents, the governments levy extra fees against visitors. Travel taxes are used to fund a wide variety of local projects that may have nothing to do with travel and tourism.

(Click here for tax tips on writing off your family vacation)

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