In the wake of the
recent election, Louisiana Governor Jeff Landry is expected to call a special
legislative session to propose potential changes to the state's tax structure, which could affect travel advisors.
According to an American
Society of Travel Advisors (ASTA) memo recently emailed to its membership, the
suggested reforms involve gradually phasing out the state’s income tax and looking
to make up that lost revenue by expanding its sales tax to include goods and
services that were formerly exempt.
Although the
details of the proposal are not yet clear, evidently, the idea is that the current
rate of sales tax would remain consistent. However, its reach would be widened
to include (among other things) travel advisors’ services, something which currently
enjoys exemption, in order to offset the loss of income tax revenue.
ASTA said that it
is closely monitoring these developments, since the proposed changes could have
significant financial implications for Louisiana’s travel advisors and agencies.
ASTA also indicated that it may call on travel professionals in the state to
reach out to their legislators once the session is underway, emphasizing the
importance of voicing industry concerns.
“With the strength
of the entire travel advisor community, we advocate for fair policies and
ensure your concerns are heard by lawmakers,” the organization wrote in its
memo. It is urging members to rejoin ASTA and support its efforts to push back
against changes that could disproportionately impact the travel industry’s
small businesses.
“Your voice matters. Our collective voice
makes a difference,” ASTA reminded its members.
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