On May 5, the Iowa Legislature passed tax reform legislation that would impose state and local taxes on certain travel agency transactions involving an Iowa hotel room. The bill will impose tax on the full price paid by consumers for an Iowa hotel room in cases where the agency is the "merchant of record" and explicitly exempts back-end commissions from tax. While limited in scope, ASTA was opposed to this change and will monitor closely the state's implementation of the legislation, which the Governor is expected to sign in the coming weeks.
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