ASTA is monitoring potential tax code changes in Louisiana that could result in taxes on travel agency services.
Republican Gov. Jeff Landry last week opened a special session of the state's legislature to change Louisiana's tax code. In his opening remarks, he said the state's tax code -- which he called "incredibly out of date" -- has not been changed since 1974.
The governor's plan calls for amending what services are taxable.
"The governor is proposing a phase-out of state income tax over time and replacing the revenue with sales taxes on goods and services that were previously exempt," ASTA said in a memo to travel advisors. "While details are not entirely clear, it appears that the current sales tax rate will not change, and travel agency services are on the target list to lose exemption."
While details are still forthcoming, ASTA said it is monitoring the situation and could ask members to contact their lawmakers in the near future.
Louisiana's special legislative session will end Nov. 25.