This paper summarizes a study of the impacts of room taxes on the lodging industry by (1) giving new estimates of the U.S average tax rates levied, by jurisdiction levying the taxes, and (2) assessing the negative impacts on number of rooms rented by first estimating the price elasticity of demand for lodging services and then applying the elasticity to the average amounts of room taxes paid. The elasticity measurement comes from a statistical model based on data from a national probability survey of the lodging industry taken in spring 1990.
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