Email this page

an effort to create searchable online databases for government expenditures

a tool to highlight the hypocrisy of tax hikers

Constitutional or statutory requirement to rein in growth of revenues end expenditures

a commitment made by elected officials and candidates for elected office never to raise taxes

Raising the bar for tax increases

Requiring a cool-off period for all bills with a fiscal impact

pork-barrel spending - the broken windows of the budget

Tax Bites - Hotel Stays

Add to Facebook Add to Twitter

50.00%

 

Because Uncle Sam seems to be able to follow you everywhere, it shouldn’t surprise you that after paying taxes on the airline ticket that got you to your favorite vacation destination, you’ll have to pay more taxes for a room at a hotel.

Your bill when you check out includes not only sales taxes, but also local occupancy taxes that could tack on up to 15.4 percent if you’re staying in Chicago.  That’s about $15 of an average hotel bill of $97.06.  

But don’t forget—hotels pay taxes too. Out of what the consumer pays to the hotel, the hotel must cover costs for federal and state income taxes, federal payroll taxes, sales taxes, capital gains taxes, unemployment insurance taxes, workmen’s compensation taxes, business license taxes and fees, utility taxes, local property taxes, and any local income taxes. The hotel must also pay federal and state excise taxes on its telephones. These taxes add another $33.58 to the average cost of a hotel room.  

Nearly half of the cost of a hotel room, or as much as 50 percent, pays for taxes. For an average one night stay costing $97.06, this means that up to $48.53 goes straight to the government.  

 

go to next tax bite
 

A Special Project of
atr.org

722 12th Street NW, Suite 400
Washington, DC
202-785-0261
friends@atr.org

/>
Website Design and Development by Braynard Group, Inc.