ASTA Applauds Advisors for Kentucky Tax Victory: Travel Weekly

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The ASTA credits local member efforts with rejecting a proposal to expand Kentucky sales taxes to include travel agency services.

The company said defeating the proposal would save Kentucky agencies nearly $2 million a year in new taxes.

The state House of Representatives introduced a bill taxing 39 service industries in March. It allegedly charged a 6% sales tax on those services, which included “travel arrangement and reservation services.”

ASTA estimated that the average Kentucky agency should have paid more than $25,000 a year in new taxes.

A grassroots campaign was launched when the bill went to the Senate. It worked, ASTA said, and travel agencies and two other service industries were removed from the list. The bill became law.

Eben Peck, ASTA’s executive vice president for advocacy, said the taxes would have been “devastating for travel companies, especially as they begin to recover from the trauma of Covid-19”.

“The hard work of ASTA members in Kentucky – Lee Thomas d’Altour in Louisville in particular – ensures that Commonwealth agencies will not be slapped with nearly $2 million in new taxes every year,” added Peck. “Advocating travel advisors at all levels of government is a critical part of ASTA’s mission, and anyone who wants to be part of this unified effort should join ASTA today.”

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