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ASTA Statement on Iowa Hotel Tax Legislation


American Society of Travel Agents on May 04, 2018

Alexandria, VA, May 4, 2018 – Eben Peck, Executive Vice President, Advocacy, at the American Society of Travel Agents (ASTA), releases the following statement with regard to Iowa House File (HF) 2489, as amended, which would expose some of the Society’s members to new and unwarranted taxation:

 

“On behalf of the our 86 member companies in the State of Iowa, we urge the Iowa Legislature to oppose HF 2489, a bill that would give taxing authorities the ability to go after travel agents of all shapes and sizes, online or offline – including the 106 Iowa agencies that employ almost 400 people. Our industry has evolved dramatically over the past few years, and part and parcel of that evolution has been a shift in business model, from one based strictly on commissions to one based on service fees as well – a trend that may well continue as the huge hotel chains increasingly look to cut travel agency commissions. In our view, service fees charged to consumers – already subject to federal and state income taxes – should not be taxed a third time through taxes traditionally applied on hotel room stays.”