Wednesday, October 3, 2012

Travel Taxes in Indiana Found to be Among the Highest in Nation

From the Indianapolis Star:

Visitors pay among the highest travel taxes in the nation when they come to Indianapolis — 17 percent on hotel rates, 15 percent on rental cars and 9 percent on meals.

That adds up to an average single-day, combined travel tax of $34.19, according to the Global Business Travel Association, which ranked Indianapolis No. 8 on its list of the worst 10 cities for travel taxes.

The rankings are based on the amount of hotel, car rental and meal taxes paid by travelers in the top 50 travel destinations in the United States.

Although Indianapolis officials say the city is still making great gains in visitors and is competitive with its convention-city peers’ taxes, some in the hospitality industry say those taxes hurt business and are calling for them to be rolled back.

“We just keep inching up,” said John Livengood, president of the Indiana Hotel and Lodging Association and president and CEO of the Indiana Restaurant Association. “If we want people to come here and spend money and help out, we are kind of shooting ourselves in the foot.”

But the reasons for the increased travel taxes are the exact reasons businesses in Livengood's industry are thriving, said Sen. Luke Kenley, R-Noblesville, who helped craft the tax-funding plans. The taxes help fund Lucas Oil Stadium and an expanded Indiana Convention Center and help to get the Capital Improvement Board, which operates the city's sports stadiums and the convention center, out of debt.

“All these hotels and restaurants are doing a booming business because of this extra business coming into the city,” Kenley said. “It’s not like nobody is going to go to St. Elmo’s because you have to pay a 9 percent food and beverage tax.”
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See the full article here:

http://www.indystar.com/apps/pbcs.dll/article?AID=2012210020356