No longer just pocket change, tourist taxes are becoming more common, more expensive and even more complex to calculate. Read on to understand how tourist taxes work, where the funds go, and when you can get a discount. TravelHow do tourist taxes work? However, new legislation means that regional mayors will soon be able to introduce official tourist taxes. A number of tourist taxes are charged only at peak times; in Ibiza and Mallorca, it drops by 75% between 1 November and 30 April.