Washington has introduced a budget that would significantly
increase the tax on travel services.
According to ASTA, legislation introduced in the state
assembly is seeking to repeal the 0.275% preferential business and occupation
tax on travel agent and tour operator commission income. In its place, travel
agents and tour operators would be subjected to a 1.5% tax rate for services.
The Society said if the governor's proposed budget is
adopted, the tax rate on services would increase to 2.5%.
ASTA has set up a portal
to send legislators messages against the legislation.
Travel agents in Washington pay a reduced rate on
compensation they get from commission, ASTA said, "in recognition of the
fact that much of the travel agents arrange for their clients is interstate
travel -- something states are not allowed to directly tax under current
federal law." ASTA said the special agency rate was put in place in the
1970s.
There are 343 retail agencies in Washington providing 2,139
full-time jobs and $168 million in economic impact to the state, the Society
said.