Don't be surprised by high travel taxes

The cost of a plane ticket is going up on January 1 - but don't blame the airlines. The U.S. government has decided to raise the flight segment tax that you pay for every takeoff from $3.10 to $3.20. And while the extra dime probably won't put a serious dent in your travel budget, it's just one of a dozen government-imposed charges you may encounter on a typical trip. There's no way to avoid most of these taxes, but if you know what to expect, at least you'll be less likely to experience sticker shock when it comes time to pay the bill.

When you book a $200 airfare, the price of your ticket already includes one of the most significant taxes: a 7.5% "federal ticket tax" that funds most of the FAA's annual budget, supporting airports and aviation infrastructure. But the fare you typically see quoted does not include three other charges.

First, you'll pay the federal flight segment tax of $3.20 per takeoff. Along with the ticket tax, these revenues are expected to top $15 billion in 2005, according to the Air Transport Association. Second, your total fare will include a September 11th Security Fee of $2.50 per flight segment, up to a maximum of $5 one-way or $10 round-trip. This tax funds the TSA screeners and other aviation security measures. Airlines also pay a security charge that varies by carrier. Finally, you'll pay a "Passenger Facility Charge" (PFC) of up to $4.50 per flight segment, up to a maximum of $9 one-way or $18 round-trip. Local airports set the amounts; you'll pay a $4.50 tax when you depart from O'Hare, for example, but only $3 when you leave from Midway.

What does all that add up to? Take your base fare, which includes the federal ticket tax, and then add about $20 for a nonstop round-trip ticket. If you're making a connection, count on approximately $40 in additional taxes. And if you're traveling internationally, expect a whole slew of extra taxes, some levied by the U.S. and some by the country you're traveling to. My rule of thumb is to add an extra $100 to my ticket price.

If you're staying in a hotel or renting a car, you'll also pay a wide variety of taxes, many of which depend on specifically where you're going. But these can pile up, too. On a recent hotel stay in New Orleans, I paid no fewer than 6 different taxes that added an extra 20 percent to my room cost, including both a state tax and a parish (county) tax, plus a mysterious "security insurance" charge. And some communities use hotel taxes to pay for sports stadiums, convention centers, and the like, regardless of whether the people paying those taxes (usually out-of-town visitors) benefit from those publicly-funded projects.

Car rentals also frequently include extra charges to fund the local economy as well as civic initiatives, but these vary widely by airport. For a car I'm renting in Boston, I'll be paying a 5% sales tax, plus a "parking and convention surcharge" of more than $10, and an "airport access" fee of more than 10%. (Pick up your car at a city office, rather than at the airport, and you can avoid some of these taxes. However, rates tend to be higher at these locations.) According to a 2003 study by Travelocity, the average car renter pays an additional 24 percent in taxes and fees. Rent a car in Houston, however, and you could pay a whopping 72 percent of your base rate in taxes.

So between your airfare, your hotel room, and your rental car, don't be surprised if travel taxes run you at least $100, even if you're just going away for the weekend. So what if you're planning a romantic getaway for two? You can't stop Uncle Sam from coming along for the ride.