Louisiana has concluded a special legislation session that resulted in the passage of a tax plan that does not impose a new sales tax on the services of travel advisors as originally proposed. This decision, says the American Society of Travel Advisors (ASTA), marks a major win for Louisiana’s travel advisors who expressed deep concerns about the impact such a tax could have had on their businesses.
Louisiana legislators moved swiftly through a special legislative session to address income tax relief for state residents. The revenue offset included levying a new sales tax on a variety of services deemed “luxury items,” including the services provided by travel advisors. During this time, travel advisors and small business owners throughout the state flooded the governor’s office and the legislature with calls and emails to educate them on the consequences this could bring to the state and to their businesses. Advisors warned the government officials that taxing their services would amount to an additional fee and could, among other things, drive their clients to seek advisors in another state where they wouldn’t be taxed.
“Adding a sales tax to our services would have created an extra burden to doing business here in our state,” said Samantha Musso, president of the Greater New Orleans ASTA Chapter and owner of New Destinations Travel in Bush, LA. “We knew this would have resulted in serious financial consequences for both travel advisors and our clients, so we are pleased that this misguided sales tax did not come to fruition.”
ASTA mobilized a grassroots advocacy effort in Louisiana that amplified the voices of travel advisors across the state.
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