The American
Society of Travel Advisors (ASTA) has announced praise on the conclusion of
Nebraska’s special legislative session which resulted in the passage of a tax
plan that does not impose a new sales tax on the services of travel advisors.
The decision marks a significant win for Nebraska’s travel
advisors who had expressed deep concerns about the negative impact the tax
could have had on their businesses.
During the four-week special legislative session focused on
tax relief, travel advisors across the state grew alarmed at the possibility of
a new sales tax being levied on their services as a potential revenue offset,
estimated to be $4.4 million in additional taxes across the sector.
As a result, travel advisors statewide sprang into action,
flooding legislators with calls and emails urging them to reconsider the tax
proposal. The advisors warned that taxing their services could drive their
clients to seek advisors in neighboring states where similar services would
remain untaxed.
"Removing the sales tax exemption for travel advisors
and tour operators would have had serious financial consequences for both
travelers and travel advisors, with many clients seeking advisors outside
Nebraska to avoid the tax,” said Jessica Klement, VP of Advocacy for the
American Society of Travel Advisors. “We are thrilled that the sales tax
exemption remains intact, protecting both consumers and travel advisors in
Nebraska.”
ASTA quickly mobilized a grassroots advocacy effort in
Nebraska that amplified the voices of travel advisors across the state. Their
collective outreach to state senators was instrumental in securing this
favorable outcome. This victory underscores the importance of active engagement
in the legislative process, ensuring that the interests of the travel community
are represented and protected.
Though the threat has been averted for now, Nebraska’s
travel advisors can continue to focus on what they do best – helping clients
create unforgettable travel experiences with their expertise and personalized
service.
Nebraska’s governor, however, vowed the issue would come up
again next year.
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