Tourist tax elasticity in Florida: Spatial effects of county-level room tax rate variation

Mills, Brian M.; Rosentraub, Mark S.; Jakar, Gidon

doi:10.1016/j.tmp.2019.05.003

Cited by 9 publications

(8 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…On the other hand, Hudson et al (2019), in a study of eight destinations, did not detect significant evidence to suggest that increases in tax rates beyond that of nearby competing cities may be economically disruptive for cities. Mills, Rosentraub, and Jakar (2019), using county-level data from the state of Florida, similarly argue that tourists are rather price insensitive in their demand for hotel rooms.…”

Section: An Overview Of the Lodging Tax Researchmentioning

confidence: 99%

“…Third, even when this type of data has been available, it has only been used for either a single destination or for relatively few destinations (for instance, Mak and Nishimura 1979;Bonham and Gangnes 1996;do Valle et al 2012;Mills, Rosentraub, and Jakar 2019). Although these studies undoubtedly offer an in-depth understanding of lodging taxrelated implications for the destinations under study, it is somewhat uncertain whether the conclusions made in these studies would also apply across other destinations.…”

Section: An Overview Of the Lodging Tax Researchmentioning

confidence: 99%

See 1 more Smart Citation

The Effect of Lodging Taxes on the Performance of US Hotels

Sharma

Perdue

Nicolau

2020

Journal of Travel Research

View full text Add to dashboard Cite

The objective of this article is to analyze the impact of lodging taxes on the performance of US hotels by looking at the two key market segments involved. The empirical application conducted on a sample of more than 7,000 observations corresponding to more than 100 urban submarkets from 2013 to 2018 finds that lodging taxes have a more negative effect on hotel performance (RevPar) for group bookings than for transient bookings. As groups usually have greater flexibility regarding the location of events, they can more easily choose a different destination if a tax increase is observed. To prevent this possibility hotels may be more inclined to offer discounts to groups, thereby absorbing some of the tax increase. The results obtained have relevant managerial implications, which are discussed.

show abstract

Section: An Overview Of the Lodging Tax Researchmentioning

confidence: 99%

Section: An Overview Of the Lodging Tax Researchmentioning

confidence: 99%

The Effect of Lodging Taxes on the Performance of US Hotels

Sharma

Perdue

Nicolau

2020

Journal of Travel Research

View full text Add to dashboard Cite

show abstract

“…Mills et al (2019) examined the spatial, county-level incidence of changes to tourist tax rates in Florida from 2003 to 2014. They found that direct and indirect effects of room tax-rate changes on taxable hotel room expenditures were relatively small and largely exported to visitors.…”

Section: Prior Researchmentioning

confidence: 99%

Empirical Evidence on the Economic Impacts of Hotel Taxes

Swenson

2021

Economic Development Quarterly

View full text Add to dashboard Cite

Tourist taxes are an important source of revenue for many governments. In the United States, all states impose them in the form of hotel/motel occupancy taxes, yet there is little ex post evidence as to whether such taxes affect occupancy rates. This study uses a precise establishment-level data source to examine California's varying rates by city, enabling powerful tests. The author finds that such taxes have negligible impacts on hotel sales and employment. On the other hand, hotels/motels operating in higher tax-rate cities tended to have more financial stress in terms of lower Dun and Bradstreet credit ratings.

show abstract

“…For example, in several studies (e.g., Ferrante et al, 2018;Koenig-Lewis and Bischoff, 2005;Lim and McAleer, 2001;Yang and Zhang, 2019) seasonal changes in the number of tourist arrivals and aggregate demand for tourism are measured through moving average techniques. Although some research (e.g., Cetin et al, 2017;Gudkov et al, 2017;Mills et al,2019;Sheng, 2017) evaluated the effectiveness of different types of tax system in the development of the tourism industry, no studies appear to have applied a moving average method to modelling seasonal tax in peer-to-peer accommodations (i.e., Airbnb).…”

Section: Introductionmentioning

confidence: 99%

“…Although some research (e.g. Cetin et al, 2017; Gudkov et al, 2017; Mills et al, 2019; Sheng, 2017) evaluated the effectiveness of different types of tax system in the development of the tourism industry, no studies appear to have applied a moving average method to modelling seasonal tax in peer-to-peer accommodations (i.e. Airbnb).…”

Section: Introductionmentioning

confidence: 99%

Airbnb and taxation: Developing a seasonal tax system

Dalir

Mahamadaminov

2020

Tourism Economics

View full text Add to dashboard Cite

This study applies tax planning theory to develop a seasonal tax strategy as an alternative to a fixed tax rate for shared lodging platforms such as Airbnb, to increase hosts’ revenue and to address seasonality in tourism. The annual revenue of the various types of accommodation is used to calculate a seasonality index by the moving average method, which is incorporated as a corrected coefficient in a seasonal tax formula. The sample includes data from 1258 active Airbnb listings in Boston, Massachusetts. Using a mean comparison test, this study reveals that the application of a seasonal tax strategy significantly increases the revenue of Airbnb hosts compared to a fixed tax rate system. Drawing on the flexibility tenet of tax planning theory, policymakers can use the proposed seasonal tax strategy as an instrument to revisit the taxation system for sharing economy businesses based on changes to the socio-economic, environmental and political conditions. Implications for all stakeholders are discussed.

show abstract

Tourist tax elasticity in Florida: Spatial effects of county-level room tax rate variation

Cited by 9 publications

References 49 publications

The Effect of Lodging Taxes on the Performance of US Hotels

The Effect of Lodging Taxes on the Performance of US Hotels

Empirical Evidence on the Economic Impacts of Hotel Taxes

Airbnb and taxation: Developing a seasonal tax system

Contact Info

Product

Resources

About