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Hawaiianislands.com looked at the average lodging taxes for
every state, with some surprising results.
“It basically looked at all of the lodging taxes that tourists
would have to pay when they’re visiting a state, so basically
there are state taxes, local taxes, occupancy taxes, so many
taxes that have been added to final costs,” researcher Jasmin
Diaz said.
Lodging taxes are typically levied as a percentage of value on
short-term overnight stays at hotels and other lodging
accommodations. In a number of cities, state and municipal
governments have formed districts to levy additional lodging
taxes on hotels within a certain geographical area.
Lodging taxes typically support tourism marketing and the
repayment of debt for tourism-related projects.
The lodging tax in Illinois averages 11.17%, which puts the Land
of Lincoln near the middle of the pack.
Alabama has the most expensive average at 23%, followed by Idaho
and Kansas. Diaz said it is surprising that states that rely on
tourism dollars didn’t dominate the top of the list.
“Places like Vegas, California or even Florida have more
visitors each year than places like Alabama, and those weren’t
at the top,” Diaz said.
The less-frequented states with fewer hotels are the
destinations that have fewer tax rates added to the
accommodation cost, Diaz said.
The lowest lodging taxes in the country are in Montana, South
Dakota and New Hampshire, all coming under 9%.
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