Photo courtesy of Thinkstock
In what is unquestionably a huge victory for ASTA and its member agents, Maryland Governor Larry Hogan vetoed a contentious hotel bill that would have applied six percent sales tax to agent service fees.
Following the bill's April 8 passage, however, ASTA and its member agents doggedly pressed the governor to veto Senate Bill (SB) 190.
"We applaud Governor Hogan for rejecting this bill, which would have made Maryland hotels less competitive, Maryland agencies less profitable, and disincentivized the nearly 105,000 agents outside of the state to sell Maryland hotels," said Zane Kerby, ASTA president and CEO, who along with Eben Peck, ASTA's senior vice president of government and industry affairs, met with the governor's chief legislative officer, Joseph Getty, in early April to press the Society's case. "This win was made possible by a strong partnership between ASTA and other travel distribution stakeholders, but especially through the efforts of our local members such as Jay Ellenby, Karen Dunlap and Larry Swerdlin. Thanks to these actively engaged members - and all the Maryland agents who participated in our grassroots campaign - travel agencies across the country have avoided over $5 million a year in new taxes on Maryland hotel bookings."
For his part, Ellenby, who vigorously fought the passage of the bill since its inception, said he was "absolutely thrilled" with the governor's veto. "ASTA and its members had a tremendous impact on this," said Ellenby of Safe Harbors Travel. "We testified on numerous occasions before senate and house committees and we also lobbied individual senators and spoke with them directly about how the bill would impact brick-and-mortar agencies."
Specifically, Ellenby, who is also ASTA's treasurer, testified before legislative committees on Feb. 11 and March 11. Swerdlin of Burton Travel also testified on March 11, while Dunlap of Travel-On, Ltd. joined forces with Ellenby and Peck at an April press conference outlining the bill's fallacies for legislators.
Meanwhile, ASTA noted that the General Assembly could endeavor to override the veto when it convenes in January. "It could be overturned - there is that possibility," Ellenby said, adding that ASTA and its members would continue to fight in the event that such a thing should happen.
But for now, ASTA is enjoying the victory of the veto. "The hard work of Maryland ASTA members ensures that Maryland travel agencies won't be slapped with an extra $81,000 collectively in new taxes every year," said Kerby. "We are grateful both for their efforts and for the governor and supportive legislators, such as Delegate Szeliga, who agreed that the independent travel distribution system should not be targeted with new taxes and red tape."
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
