State Activities & Legislation
The ASTA Government Affairs Department works tirelessly for its members throughout the country by monitoring issues and organizing grassroots on their behalf within the state legislatures. State Taxes, Licensing Regulations, and Surety Bonds are just a few of the many issues that have been addressed during the past few years.
ASTA Government Affairs Webinars - State and Federal activities are some of the most important activities that ASTA performs on your behalf. The following webinar records cover the range of activities that have been taking place in your association. The Government Regulations webinar is available to members only.
| Government Regulations That Travel Agents MUST Know Video Length: 14:56 min  | ASTA Government Affairs Activities |
State Legislative Pending Issues
Travel Insurance Regulations: Time for Change
ASTA and the United States Travel Insurance Association (USTIA) are working together to advocate that the insurance commissioners change the costly and fragmented regulatory compliance regimes that some travel sellers must endure to offer travel insurance to their clients. Today, the travel consumer has a convenient source of basic information about the availability of travel insurance through the travel agency industry referral channel. This consumer benefit is diminished when travel agents are deterred from offering the insurance opportunity due to the heavy burden of regulation.
State Legislation: 2010 Priorities Alaska: ASTA strongly endorses a recent proposal by Gov. Sean Parnell to reduce the "head tax" on inbound cruise passengers.
New York: In its current form, the 2011 budget making its way through the New York State legislature would apply hotel occupancy taxes to any so-called "occupancy provider"-a category that could apply to many ASTA Member travel agents. ASTA is currently urging all New York members to contact their state senators and state representatives to request that "Part U" (pertaining to hotel occupancy) be removed from the bill A9710B. For more information, please visit ASTA's advocacy center by clicking here.
Virginia: On Feb. 26, 2010, ASTA learned that the Finance Committee of the Virginia House of Delegates was about to take action on a proposal to apply hotel occupancy taxes to certain travel agency markups for the sale of hotel rooms. If passed, the bill would make Virginia the first state in the nation to impose such a tax. ASTA acted quickly to inform all of its Virginia members of the need to contact their state representatives and educate them on the dangers of imposing new taxes on travel. Many agents responded by calling, faxing, and e-mailing their elected officials. Four days later, on March 2, the Committee narrowly voted to postpone consideration of the tax by one year, citing the need for further legislative research. While the threat has not completely passed, this is a very significant victory for travel agents everywhere-particularly those located in the Commonwealth of Virginia. Special thanks are due to ASTA Premium Member and former ASTA Vice President Mary Peters, CTC, of Friendly Travel/American Express (Alexandria, VA) for volunteering to drive to Richmond with less than 24 hours' notice to represent the travel agency industry on this issue. Premium Member Mike MacNair (MacNair Travel Management / American Express (Alexandria, VA) also deserves recognition for writing to his elected officials to explain how such a tax would harm travel agencies and impede economic growth.
State Legislative Resolved Issues
As a direct result of the grassroots work by ASTA Member travel agents, ASTA has successfully defeated efforts by the following states to unfairly tax travel agencies:
Illinois
Defeated the Governor’s proposed gross receipts tax on all Illinois businesses.
- Benefit to members: Stopped a 1.95 percent tax levy on travel agencies.
Michigan
Defeated the Governor’s proposed gross receipt tax on service industries.
- Benefit to members: Prevented a two percent tax increase on travel agency services.
Montana
Stopped the state legislature from enacting a new hotel occupancy tax on travel agency service fees.
- Benefit to members: Averted double taxation on travel agents’ income stream.
Massachusetts
Testified against the Governor’s proposal closing corporate tax loopholes and legislation that imposes a new hotel occupancy tax on travel agent service fees. This issue is pending.
- Benefit to members: Averts double taxation on travel agents’ income stream.
New York
Defeated the Governor’s budget proposal to subject travel agents’ service fees to a new hotel occupancy tax when booking hotel rooms in New York.
- Benefit to members: Averted double taxation on travel agents’ income stream.
Oregon
Stopped passage on a revenue raiser bill increasing corporate taxes.
- Benefit to members: Avoided agents from being subjected to a sliding scale gross receipts tax.
Texas
Achieved regulatory and statutory clarifying language defining a travel agency’s “net” vs. “gross” taxable revenue for federal and state tax filing purposes as well as gained expanded small business exemptions related to the new Texas franchise tax (special funding by Corporate Advisory Council).
- Benefit to members: A priceless achievement that will benefit Texas travel agents.
