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HVS Publishes First U.S. Lodging Tax Study

Research identifies lodging tax rates and distribution of revenue in the United States.

HVS Convention, Sports, & Entertainment Facilities Consulting (HVS CSE) is pleased to announce the release of it’s first U.S. lodging tax study which explores the current status and historical trends in the imposition of lodging taxes in the United States.

The HVS U.S. Lodging Tax Study identifies the lodging tax rates levied at the state, county, city, and special district levels, and the collection and distribution of revenue from lodging taxes in all 50 states and in the 100 largest cities in the United States.

HVS used comprehensive annual financial reports, annual adopted budgets, revenue reports, media sources, and interviews with government finance officials to determine the tax rates and amounts of lodging tax collections at the state, county, city, and special district level. This data collection effort allowed HVS to rank the 100 largest cities in the United States according to their lodging tax rates in their urban center.

“Since reporting of lodging taxes is mandatory, data on taxable collections can provide a highly reliable indication of the room revenue trends in the lodging industry,” said Tom Hazinski, Managing Director of HVS CSE. Where available, HVS gathered data on rooms tax collections for the complete fiscal or calendars of years of 2007 through 2011.

Lodging taxes are typically ad valorem taxes (levied as a percentage of value) applied to charges for overnight stays at lodging accommodations. Using known tax rates, HVS also estimated the amount of taxable room revenue generated in each of the 100 largest cities in the U.S. “The results show a clear picture of the impact of the “Great Recession” on the lodging industry,” says Hazinski.

This study provides a valuable source of comparative information for destination marketing and sales organizations and hotel sales managers. As cities compete for price sensitive hotel business, lodging tax rates have become an important factor in consumer choice, as they range from 9.0% to 17.5% of total lodging costs. “This study helps to complete the picture of competitive hotel room rates across major cities in the US.” Hazinski said.

The complete Lodging Tax Study is available for purchase in the HVS bookstore.

For more information about the report, contact Tom Hazinski:
Tom Hazinski, Managing Director
HVS Convention, Sports, & Entertainment Facilities Consulting
Phone: 312.587.9900
Email: thazinski@hvs.com