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Cos. find hotels increasingly taxing.

Publication: Business Travel News
Publication Date: 19-JUL-04 		Format: Online - approximately 1099 words
Delivery: Immediate Online Access

Article Excerpt
Nightly hotel taxes in the United States last year generally increased by less than three percentage points, though the number of cities where the total tax approached 15 percent to 17 percent reached a new high. According to one taxation expert, this is the tipping point at which the hospitality industry, as well as business travelers and the companies picking tap their tabs, start to object to the heavy tax bite.

"Some local and state governments kept hotel taxes flat in 2003, while others raised them 2 percent or 3 percent," said Charles de Sere, president of the American Economics Group research firm in Washington, D.C., and author of a study on hotel taxation issued fills year under the auspices of the American Hotel & Lodging Association. "Each government body that raised taxes thought it had a reasonable explanation, mostly to fund civic projects that benefit the local community, if not travelers, whether on business or leisure. But after a point, people begin to...

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