| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$201.12 |
34 |
|
Percentage of total item cost: |
17.08% |
36 |
|
Overall tax index: |
187 |
50 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Boston. The second
item (percentage of total
item cost) indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show
how Boston compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Boston currently has an
overall Tax Barometer index of 187,
indicating an 87% increase in
travel-related taxes since June 15, 1994.
This increase can be attributed to higher
tax rates in the car rental, lodging, and airline sectors; tax rates on
restaurant meals have remained steady over this
same period. For a five-day, four-night trip to
Boston, travelers
can expect to pay approximately $201.00 in tourism-related taxes, a
total that ranks as the 19th highest among all
surveyed destinations.
|
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$230.72 |
- |
|
Airport access fee: |
11.11% |
- |
|
State sales tax: |
5.00% |
- |
|
Vehicle licensing and excise tax: |
3.80% |
- |
|
Convention center surcharge (applied per rental): |
$10.00 |
- |
|
Parking fee (applied per rental): |
$0.30 |
- |
|
Total charges for 4-day rental with taxes: |
$287.86 |
- |
|
Total tax $ for 4-day rental: |
$57.14 |
33 |
|
Percentage of total car rental cost: |
19.85% |
28 |
|
Car rental tax index: |
482 |
51 |
|
Summary:
In 1994, car rentals
in Boston included a
$0.30 per rental parking fee and
the 5.0% state sales tax.
Since that time, car rental taxes have
increased 382%, second highest among all surveyed destinations.
In 1998, a convention center surcharge was introduced at a rate of
$10.00 per rental, with the revenue earmarked for the financing of
Boston's new convention center. In 1999, two new fees were
introduced: a 3.8% vehicle licensing and excise tax, and a 10.0%
airport access fee. The airport access fee was increased to
11.11% in 2001. Despite the increases, Boston remains only the
20th most expensive destination overall in terms of total taxes
collected, although it is the most expensive of the seven destinations
surveyed in the United States. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$636.00 |
- |
|
State sales tax: |
5.00% |
- |
| Local
lodging/occupancy tax: |
4.70% |
- |
|
Convention center tax: |
2.75% |
- |
| Total
charges for 4-nights lodging with taxes: |
$715.18 |
- |
|
Total tax $ for four-nights: |
$79.18 |
34 |
|
Percentage of total hotel room cost: |
11.07% |
29 |
|
Hotel
tax index: |
128 |
45 |
Summary: Hotel taxes in Boston have
increased 28% since 1995, the eighth highest such increase among all
surveyed destinations, and the greatest increase among American
destinations. The approximately $79.00 in taxes paid during a five-day,
four-night stay is the 19th highest overall. The base index for
Boston includes the state sales tax and the local occupancy tax; the
convention center charge
was introduced in 1999. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$166.00 |
- |
|
State sales tax: |
5.00% |
- |
|
Total charges for 12 meals with taxes: |
$174.30 |
- |
|
Total tax $ for 12 meals: |
$8.30 |
4 |
|
Percentage of total restaurant meals cost: |
4.76% |
5 |
|
Restaurant tax index: |
100 |
5 |
Summary: Boston's restaurant tax has not increased since
1995. The only applicable tax is the state sales tax, which is
levied at a rate of 5.0%. Boston is very competitive in terms of
total tax dollars collected for 12 restaurant meals, and the $8.30 in
taxes collected ranks as the fourth lowest overall among surveyed
destinations. |
 |
Rank |
|
International transportation tax: |
$26.40 |
 |
|
Passenger facility charge: |
$6.00 |
- |
|
Immigration user fee: |
$6.00 |
- |
|
Customs user fee: |
$5.00 |
- |
|
Passenger Civil Aviation Security Services Fee: |
$10.00 |
|
|
APHIS user fee: |
$3.10 |
- |
|
Total tax $ for international arrival and departure: |
$56.50 |
46 |
|
Percentage of total trip cost: |
4.80% |
46 |
|
Air passenger tax index: |
218 |
36 |
| (
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary:
As is the case with all American cities included in the Tax Barometer,
Boston is a costly destination for airline passengers. The
$56.50 Boston levies in international air passenger taxes is the fifth
highest overall. Boston's base index includes a total of $32.29
in taxes, many of which are still in effect but at different rates.
Two tax increases occurred in 2002: a new $10.00 civil
aviation security services fee was introduced to
fund increased security measures, and the international transportation
tax was increased from $25.60 to $26.40. Overall, taxes on
international airline passengers have increased 118% in Boston since
1994, the 15th highest increase among all surveyed destinations. |
 |
|
Barometer No. 5:
The arrival facility charge was lowered from US$ 5.39 to US$ 4.71 and
the departure facility charge was increased from US$ 0.95 to US$ 2.13,
affecting airline passengers. Also, the United States increased
several of its taxes to international passengers that affect all US
cities. Those changes are to the APHIS (agricultural inspection) fee
from US$ 1.45 to US$ 2.00; a US$ 6.00 increase in the transportation
tax (US$ 12.00 total); a new US$ 12.00 arrival tax; and the lowering
of the customs user fee from US$ 6.50 to US$ 5.00.
Barometer No. 7:
A US$ 0.30 parking fee was replaced with a US$ 10.30 convention center
surcharge and parking fine recovery fee, affecting car rental rates.
Barometer No. 8:
A new 3.8% vehicle licensing and excise tax was introduced, along with
a 10.0% airport access fee, affecting car rental rates. A 2.75%
convention tax was also introduced, affecting hotel rates. In
addition, the United States increased both its international
transportation tax and international arrival tax to US$ 12.20. The
APHIS fee on passengers was also increased to US$ 2.05.
Barometer No. 10:
There were several changes in the airline sector. A US$ 6.00
immigration user fee was included for the first time, the APHIS fee
was increased to US$ 3.10, and the international arrival and
international transportation taxes were combined to produce a new US$
25.60 fee. In the car rental sector, the airport access fee was increased
to 11.11%.
Barometer No. 11:
The international
transportation tax levied on airline passengers was increased from US$
25.60 to US$ 26.40. The United States also introduced the civil
aviation security service fee. This US$ 10.00 fee was introduced to
offset the costs of enhanced security measures at U.S. airports.
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