Lawmakers in U.S. states are once again eyeing travel agencies and other service providers as a likely source of new tax revenue. Tax proposals in Connecticut, Utah, and Nebraska would require travel agencies, along with others who provide professional services, to be subject to state sales tax. For many agencies, it could be a final nail in the coffin.
A vigorous grassroots campaign led by the American Society of Travel Advisors, which has been successful in helping squash similar proposals in the past, is under way in all three states. These proposals may also come to naught, but a general trend among states to target service industries for revenue means that complacency is not an option.
The trade group is also rankled by other perceived threats to advisors, including a Today Show segment touting the savings provided by Costco Travel and Four Seasons' ads on Facebook offering perks for direct bookings. While annoyed, advisors told Skift that big companies should realize that "the little guys can fight back."
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