States and cities in most parts of the country have raised hotel taxes relentlessly in recent years, often to help pay for local projects such as convention centers or new sports facilities. Texas cities lead the high-tax parade, with 15 percent or more added to the cost of a hotel room in several cities. Houston has the highest tax in the nation, at 17 percent. The rate is 13.25 percent in New York City and in some cities in Maryland and Tennessee. It is 13 percent in Philadelphia, and Boston is right behind at 12.45 percent.
Rental cars are another favorite target for states, cities and airports.
Taxes and fees can easily add 20 percent to daily rental rates. For the record, most travel companies say they don't like the taxes and charges any better than consumers do. But the companies also are only too happy to see air-ticket tax money, airport charges and other tax funds funneled into public facilities, such as runways, terminals and convention centers, that underpin their enterprise. Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.