The Peer-to-Peer Economy

03/29/2021

NetChoice opposition to Texas HB 2889 — a New Tax on Travel Agents

Steve DelBianco
Steve DelBianco President and CEO
NetChoice opposition to Texas HB 2889 -- a New Tax on Travel Agents Download

NetChoice opposes HB 2889, which creates a new tax on services provided by travel agents and online travel companies.

HB 2889 imposes a new tax on the fees these travel agents charge for researching, comparing, and booking rooms for travelers.  Cities and states favor hotel taxes since they fall mostly on visitors – not on resident voters. But under HB 2889, this approach would backfire since the new service tax would be paid only by Texans– not by travelers from out-of-state.

We describe this and other concerns in the attached testimony

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