The American Society of Travel Advisors (ASTA) warned Virginia lawmakers that proposed legislation to expand the state’s sales and use tax to professional services would place small, women-owned travel businesses at a competitive disadvantage and could drive business out of the Commonwealth.
In a letter submitted for the record ahead of a February 9 hearing of the House Finance Subcommittee #3, ASTA President and CEO Zane Kerby expressed opposition to HB 900 and HB 978, which would require travel advisors to charge sales tax on any professional service fees. The proposals come as Virginia is experiencing a substantial budget surplus.
“Targeting small businesses to pay for other projects when the Commonwealth has a surplus is unnecessary and misguided,” said Kerby. “Ninety-five percent of travel agencies are small businesses, and eighty percent are women-owned. These proposals would penalize Virginia-based advisors while making it easier for consumers to seek services from advisors in other states.”
According to ASTA, the nearly 5,800 travel advisors in Virginia generated $2.2 billion in travel sales in 2024, supporting the state’s broader travel and tourism economy. Unlike other local service providers, travel advisors operate without geographic constraints, meaning new taxes could incentivize clients to take their business out of state.
“Travel is not a discretionary luxury,” added Jessica Klement, ASTA’s vice president of Advocacy. “Travel advisors provide essential services that support business operations, workforce mobility and emergency travel needs. Taxing these services threatens both small businesses and Virginia’s economic competitiveness.”
ASTA urged lawmakers to reject HB 900, HB 978 and any similar proposals that would increase costs for small businesses without clear economic justification. While the committee ultimately carried over both bills to the 2027 legislative session, ASTA will continue to engage with lawmakers to ensure Virginia’s tax policy does not harm small travel businesses.
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