Vacationing in Chicago? Bring some extra cash for taxes

(August 6, 2010) If you're planning to take a rental-car and hotel vacation at some point between now and Labor Day, here's a bit of information to fit into your choice filter: Cities that really sock it to travelers in the form of taxes on car rentals, hotel rooms and meals.

The information comes from the National Business Travel Association Foundation and Concur, a company that helps organizations manage employee travel spending. The two organizations say that "discriminatory" travel taxes and fees enacted on travel-related services are often used to fund local projects that have nothing to do with travel.

For once, California — which is often the bugbear of business when it comes to taxation — actually has some low-tax locations.

The lists' sponsors say these five are the U.S. cities (among the top 50 travel destinations) where travelers incur the highest total tax burden in central city locations, factoring in both general sales taxes and "discriminatory" travel taxes ( those imposed specifically on travel services above and beyond general sales taxes):

  1. Chicago, IL
  2. New York, NY
  3. Boston, MA
  4. Seattle, WA
  5. Minneapolis, MN

The U.S. cities where travelers incur the lowest total tax burden for both types of taxes:

  1. Fort Lauderdale, FL
  2. Fort Myers, FL
  3. Portland, OR
  4. Detroit, MI
  5. Honolulu, HI

 The U.S. cities that impose the highest "discriminatory" travel tax rates in central city locations:

  1. Portland, OR
  2. Boston, MA
  3. Minneapolis, MN
  4. Indianapolis, IN
  5. New York, NY

 The U.S. cities with the lowest such travel tax rates in central city locations:

  1. Orange County, CA
  2. San Jose, CA
  3. Burbank, CA
  4. San Diego, CA
  5. Ontario, CA

Edmunds.com