The American Society of Travel Advisors (ASTA) is applauding the conclusion of Nebraska’s legislative session with no new sales taxes levied on travel packages, including professional fees charged by travel advisors.
The proposed tax, part of a broader effort to reduce property taxes, could have added up to 7.5 percent to the cost of trips booked through in-state advisors. For travelers, that would have translated to an additional $262 on a $3,500 cruise vacation.
Industry advocates warned the policy would push consumers to book through advisors outside of Nebraska to avoid the added costs, undercutting local businesses.
No Sales Tax on Travel Packages or Service Fees
“Travel advisor services are not constrained by geographical boundaries, and they are frequently essential, especially during business travel and unforeseen events,” said Jessica Klement, ASTA Vice President of Advocacy, in a press statement.
Taxing the packages advisors sell and the services they provide would not only amount to an additional fee to their clients, but also would ultimately force their clients to seek services outside of Nebraska,” she continues. “I applaud the efforts of the travel advisors in Nebraska to successfully fight against this sales tax, protecting both consumers and their small businesses.”
In response to the proposed legislation, ASTA activated a grassroots campaign, mobilizing travel professionals statewide to contact lawmakers. Their efforts highlighted the potential economic fallout for local agencies and the broader travel industry in the state.
While Nebraska’s legislature is now adjourned, ASTA notes that similar tax proposals could resurface in future sessions. The organization says it remains ready to respond and will continue to advocate for the protection of travel advisors and their clients.
For now, travel sellers in Nebraska can continue offering their services without the burden of additional taxation, preserving both consumer access and small business stability.
For more information about ASTA, visit asta.org.
