Travelers watched their tax bills increase by 58 percent on travel-related services in 2013, according to a report released today by the GBTA Foundation, the education and research arm of the Global Business Travel Association (GBTA).

The study includes hotel lodging, car rentals and restaurant meal taxes in the top 50 U.S. destination cities, which are regularly used to fund local projects unrelated to tourism and business travel.

 "Unfortunately, it's not just state and local governments that see business travelers as their cash cow – the federal government is getting in the game," GBTA executive director and COO Michael W. McCormick said, referring to Congress' decision to keep a traveler passenger tax hike in the approved 2014 budget. "Instead of driving TSA efficiencies that curb spending, Congress' solution is to double the amount travelers pay." 

The top 50 markets are ranked by overall travel tax burden (general sales tax and discriminatory travel taxes combined) and by discriminatory travel tax burden (taxes that target car rentals, hotel stays and meals).

Total Travel Tax Burden

Chicago led the top 10 U.S. cities where travelers incur the highest total tax burden (general sales tax and travel taxes comnined) in central city locations.

Fort Lauderdale was one of four Florida cities that led the top 10 U.S. cities where travelers incur the lowest total tax burden in central city locations.

Discriminatory Travel Tax Burden

California and Florida are among the states with the lowest discriminatory travel tax rates in the country.

Portland led the top 10 U.S. cities with the highest discriminatory travel tax rates in central city locations.

Burbank was one of a whopping six California cities that led the top 10 U.S. cities with the lowest discriminatory travel tax rates in central city locations.

"Municipalities are under pressure to raise revenue wherever they can, but imposing too heavy a tax burden on business travel is a shortsighted strategy," said Joseph Bates, GBTA Foundation Vice President of Research.

"With taxes rising in every area of society, companies and travel managers are taking an increasingly hard look at the price they're being asked to pay to visit any given city or region."

"Rising car rental taxes helped boost travel taxes among cities where travelers already face some of the highest total tax burdens in the country. The recent 3% increase in the Motor Vehicle Rental Tax inMinneapolis and the 2% increase in the Auto Rental Excise Tax in Indianapolis pushed these cities toward the top of the high-tax group for 2013," Bates added.

The complete list of the top 50 U.S. destinations is available exclusively to GBTA members by clicking here. Non-members may purchase the report by emailing pyachnes@gbtafoundation.org