What’s so iAWFUL

Creates new taxes on travel agents and expands hotel taxes to include anything in a bundled travel package like food and entertainment tickets.

These bills impose a new tax on services provided by in-state travel agents and online travel services. They wrongly assert that providing a hotel room is the same thing as a travel agent providing services when they research, compare, and book rooms for travelers.

Cities and states favor hotel taxes since they fall mostly on visitors – not resident voters. But under these new hotel taxes, this approach would backfire since the service tax would be paid only by state’s own citizens – not by travelers from out-of-state.  And the tax would only impact in-state businesses like wedding and convention planners.

These bills:

▪ Create a new tax on hotel services

▪ Impose new tax collection burdens on traditional and online travel agents

▪ Empower tax collectors to impose new taxes on food, alcohol, and entertainment, if part of a bundled trip or tour package



State legislators in Virginia and Tennessee thought better of these bills and rejected them this session. Unfortunately, we expect to continue seeing more, including a new bill in Ohio.



Tennessee SB 212

Virginia SB 767

Virginia SB 767 & 1094

Video Testimony:

NetChoice testifies against Tenn Hotel Tax Bill


The iAWFUL reflects the editorial views of the Executive Director of NetChoice and does not necessarily reflect the views of all NetChoice members.

Back to iAwful list