An Oregon state bill that would’ve taxed travel agent service fees on hotel bookings was defeated in what ASTA called a victory for Oregon travel agents.
Oregon’s Senate Bill 1519, introduced last month, would have expanded the lodging tax to include intermediaries. ASTA said the bill would’ve placed an unfair tax on the state’s 186 retail travel agencies, which employ about 1,000 people. Hotels said the extra tax would have hurt business.
“Oregon’s tourism industry and this provision would have driven tourism, a key economic engine, away from the state,” said ASTA CEO Tony Gonchar. “With the defeat of this bill, Oregon officials have demonstrated that they understand the vital role travel agents play in the state’s travel and tourism industry and overall economy.”
ASTA said three states (New York, North Carolina and Minnesota) have passed laws similar to the one proposed in Oregon, and that other states (including Virginia, Massachusetts, Connecticut and Texas) had proposed similar bills but all were rejected.
ASTA said Missouri has gone in the opposite direction, specifying that travel agency fees must be excluded from being subject to hotel occupancy taxes.
Follow Danny King on Twitter @dktravelweekly.