Study: Visitors to Honolulu have lowest tax burden in U.S.


Honolulu has the lowest total tax burden for travelers in the United States, according to a recent study.

Travelers here pay less in general sales taxes and discriminatory travel taxes for lodging, car rentals and meals.

The study by the National Business Travel Association and American Economics Group Inc. detailed travel tax data on the 50 U.S. cities with the highest number of air passengers. The study looked at the amount of taxes paid by travelers who stay at a hotel, rent a car and eat restaurant meals for one day and one night.

Portland, Ore.; and Fort Lauderdale, Fort Myers, and West Palm Beach, Fla., ranked just above Honolulu.

The cities that impose the highest total taxes on travelers are Chicago, Ill.; Nashville, Tenn.; Charlotte, N.C.; Seattle; and Houston.

Honolulu International Airport topped the list for the lowest travel tax burden at airport locations meanwhile Cleveland Hopkins Airport has the highest, according to the report.

In Honolulu, the tax rate for meals and car rentals at the time of the study were 4.17 percent each, and lodging was 11.42 percent. The tax burden in Honolulu totaled $21.45 per day.

Taxes in Chicago, where the burden is the highest, totaled $42.44 per day.

 

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Aug 20, 2008

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