Legislation recently introduced in the Washington Legislature (House Bill 2141) would repeal the preferential business and occupation tax (B&O) rate of 0.275 percent on travel agent and tour operator commission income, and subject them instead to the 1.5 percent tax rate for services. That rate could increase to 2.5 percent if Governor Inslee's budget proposal is adopted by the end of this legislative session – an almost ten-fold increase in tax rate.
The state estimates that this change will raise $4.6 million in Fiscal Year 2020, and $5.2 million in Fiscal Year 2021, or nearly $29,000 in new taxes for each and every travel agency in Washington in those two years alone.
Please take two minutes to tell your legislators to oppose this tax increase on travel advisors through our grassroots portal:
Fighting this tax hike is our top priority, and we need your help today! If you have any questions, please contact GovtAffairs@asta.org. Thank you!
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