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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

 

Status:

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.

Resources:

Testimony:

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.

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