National Business Travel study: O'Hare Airport's taxes highest

ByABC News
August 23, 2009, 9:34 PM

— -- The recession has reduced travel, but it hasn't stopped an increase in the taxes travelers pay, a study out Monday from a business travel group shows.

The study, commissioned by the National Business Travel Association, reveals that travelers not only pay a local sales tax, but they also spend up to 172% more in taxes aimed at visitors each day they stay at a hotel, dine and rent a car.

Taxes targeting travel-related services can cost a Fortune 500 company $50 million to $60 million a year, says Fay Beauchine of NBTA, which represents about 4,200 corporate travel managers and suppliers.

"In a tough economic environment, many state and local governments have relied on the old habit of targeting travelers to make up revenue shortfalls," Beauchine says.

Taxes paid by travelers may include those of more than one municipality and can vary at an airport or a city center.

The study looked at taxes at the 50 U.S. airports with the most passengers. It found that a typical traveler pays $40.99 a day in taxes at Chicago's O'Hare airport more than at any other airport studied. The $40.99 is made up of $26.14 in sales tax, plus $14.85 in taxes aimed at travelers.

A traveler at Boston's Logan airport typically pays just $12.75 a day in sales tax. But the traveler also pays $21.88 a day or 172% more in taxes aimed at visitors.

Travelers at the Portland, Ore., airport pay the least amount: $21.49. Portland's airport is the only one in the study with no sales tax.

To calculate how much tax a traveler pays daily, the study assumed a hotel room rate of $95.61, a $73.66 rental car rate and $85.80 for three meals. Those are average industry rates, according to the Washington, D.C.-based American Economics Group, which did the study for the NBTA.

Based on those rates, the study also looked at non-airport taxes aimed at travelers. It again found that Chicago charges the highest taxes on travelers, followed by Seattle and Dallas. Portland charges the least, followed by Detroit and Honolulu.