The American Society of Travel Advisors (ASTA) this week applauded the conclusion of Nebraska’s legislative session with no new sales taxes levied on travel packages, including professional fees charged by travel advisors. “This marks another significant win for Nebraska’s travel advisors who expressed deep concerns about the negative effects such a tax could have on their businesses,” the society said.
Nebraska state senators pursued the removal of the sales tax exemption on certain goods and services that they’ve deemed “non-essential” in the hopes of offsetting a decrease in the state’s property taxes. Travel advisors throughout the state, according to ASTA, flooded legislators’ offices with calls and emails urging them not to levy a sales tax on the trips and packages they sell to their clients. They warned such a tax would amount to a hefty fee on travelers, and it would drive them to utilize the services of a travel advisor outside the state to avoid the tax.
The proposed sales tax of up to 7.5 percent on travel sold in Nebraska would, for example, add an extra $262 to a $3,500 cruise vacation booked with an in-state advisor. Consumers wishing to avoid the $262 tax could simply use an advisor outside of Nebraska to book the exact same cruise.
“Travel advisor services are not constrained by geographical boundaries, and they are frequently essential, especially during business travel and unforeseen events,” said Jessica Klement, ASTA Vice President of Advocacy. “Taxing the packages advisors sell and the services they provide would not only amount to an additional fee to their clients but also would ultimately force their clients to seek services outside of Nebraska. LB169 and legislation like it would have serious financial consequences for both Nebraska travelers and travel advisors. Nebraska legislators narrowly averted driving all travel booking from their state and harming small Nebraska businesses with this unfair and misguided proposal. I applaud the efforts of the travel advisors in Nebraska to successfully fight against this sales tax, protecting both consumers and their small businesses.”
Added ASTA: “This victory underscores the importance of active engagement in the legislative process, ensuring that the interests of the travel community are represented and protected.”
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