| 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: |
$210.29 |
36 |
|
Percentage of total item cost: |
18.23% |
45 |
|
Overall tax index: |
119 |
26 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Chicago. 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 Chicago compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Chicago currently has an
overall Tax Barometer index of 119,
indicating a 19% increase in
travel-related taxes since June 15, 1994.
This increase can be attributed
solely to higher tax rates in the airline
passenger sector; tax rates
in the other three
sectors have remained steady over this
same period. For a five-day, four-night trip to
Chicago, travelers
can expect to pay approximately $210.00 in tourism-related taxes, a
total that ranks as the 17th highest among all
surveyed destinations.
|
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$216.52 |
- |
|
Automobile rental and occupation tax: |
6.00% |
- |
|
Environmental protection tax: |
6.00% |
- |
|
Chicago transportation tax: |
6.00% |
- |
|
Lessor tax (per rental): |
$2.75 |
- |
|
Total charges for 4-day rental with taxes: |
$258.74 |
- |
|
Total tax $ for 4-day rental: |
$42.22 |
27 |
|
Percentage of total car rental cost: |
16.32% |
24 |
|
Car rental tax index: |
100 |
1 |
|
Summary:
Car rental taxes in Chicago have remained steady since 1994, and
the approximately $42.00 in total taxes collected on a four-day, mid-sized car
rental ranks as the 26th highest among surveyed destinations.
Chicago is one of only 14 cities not to have raised car rental
taxes over this period.
|
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$620.00 |
- |
|
State sales tax: |
6.20% |
- |
| Local
lodging/occupancy tax: |
3.00% |
- |
|
Municipal tax: |
1.10% |
- |
|
Illinois Sports Authority tax: |
2.10% |
- |
|
Pier and Expo tax: |
2.50% |
- |
| Total
charges for 4-nights lodging with taxes: |
$712.38 |
- |
|
Total tax $ for four-nights: |
$92.38 |
40 |
|
Percentage of total hotel room cost: |
12.97% |
36 |
|
Hotel
tax index: |
100 |
8 |
Summary: Hotel taxes in Chicago have
also remained at their 1994 level of 14.9%. The approximately
$92.00 in taxes collected for a four-night hotel stay ranks as the
13th highest overall and the second highest among surveyed destinations
in the U.S. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$166.00 |
- |
|
State and local sales tax: |
9.75% |
- |
|
Total charges for 12 meals with taxes: |
$182.19 |
- |
|
Total tax $ for 12 meals: |
$16.19 |
15 |
|
Percentage of total restaurant meals cost: |
8.89% |
24 |
|
Restaurant tax index: |
100 |
5 |
Summary: As is the case with car rentals and lodging,
Chicago's tax rate on restaurant meals has remained at its base index
level. Chicago is one of 25 cities not to raise its
restaurant tax since 1994, and the approximately $16.00 in taxes collected
for 12
meals ranks as the 15th lowest among all 52 surveyed destinations. |
 |
Rank |
|
International transportation tax: |
$25.60 |
 |
|
Passenger facility charge: |
$9.00 |
- |
|
Immigration user fee: |
$6.00 |
- |
|
Customs user fee: |
$5.00 |
- |
|
APHIS user fee: |
$3.10 |
- |
|
Passenger Civil Aviation Security Services Fee: |
$10.00 |
|
|
Total tax $ for international arrival and departure: |
$59.50 |
49 |
|
Percentage of total trip cost: |
5.16% |
49 |
|
Air passenger tax index: |
229 |
40 |
| (
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary:
One international arrival and departure from O'Hare International
Airport will cost a traveler nearly $60 in taxes, the second most of
any surveyed destination. This amount has increased 129% since
1994, the 11th largest increase among all destinations included in the
Tax Barometer. Chicago's base index includes a total of $38.63
in tax charges, 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 $26.40.
|
 |
|
Barometer No. 5:
The United States increased several of its taxes to international
passengers that affect all US cities. Those changes are to the APHIS
(agricultural inspection) fee from US$ 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. 8:
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. The
passenger facility charge was also increased to US$ 4.50 per flight
segment.
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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