The American Society of Travel Advisors (ASTA) is urging lawmakers in Virginia to reconsider legislation that would mandate travel advisors to levy a sales tax on their offerings to clients.
The legislation, detailed in HB 900 and HB 978, aims to broaden Virginia’s sales and use tax to encompass professional services, potentially putting the travel agencies in the state at a competitive disadvantage. ASTA’s President and CEO, Zane Kerby, described the proposed bill as “unnecessary and misguided,” particularly since the state’s budget currently enjoys a surplus.
“Ninety-five percent of travel agencies are classified as small businesses, with eighty percent being owned by women,” stated Kerby. “These measures would impose a burden on advisors based in Virginia while simplifying the process for consumers to utilize advisors from other states.”
On February 5, Kerby dispatched a letter to legislators in Virginia, detailing the potential effects of the new law on travel advisors. This communication was submitted prior to the hearing on February 9 of the House Finance Subcommittee #3, which ultimately decided to postpone the bill until the 2027 legislative session.
According to ASTA, approximately 5,800 travel advisors in Virginia resulted in $2.2 billion in travel sales during 2024, and since these advisors operate without state boundaries, state tax laws could incentivize clients to shift their business to other states.
“Travel is not merely a discretionary luxury,” remarked Jessica Klement, ASTA’s vice president of advocacy. “Travel advisors render vital services that facilitate business operations, workforce flexibility, and urgent travel requirements. Imposing taxes on these services jeopardizes small businesses and Virginia’s competitive edge in the economy.”
ASTA remains committed to opposing the Virginia state tax proposal as it anticipates returning to legislators in 2027. The organization has recently achieved success in fending off similar tax initiatives in Nebraska and Louisiana.
Fonte: Travel Market Report
