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By Nik Rajkovic
Apr 19, 2021
As the travel industry looks to rebound from COVIC restrictions, Texas lawmakers have quietly advanced a bill that would tax the use of travel agencies, whether online or brick-and-mortar.
“If you go to a hotel and you go through an online travel agency, you ll pay an additional fee,” he says. “It s a new additional tax and it will make it more expensive for people to go to hotels.”
“Hotels and restaurants have really been hit hard by COVID and the pandemic.”
In a statement, ASTA’s Eben Peck said that, with the average agency business down more than 80% in 2020 when compared to 2019, “now is the worst possible time to be raising taxes on the travel agency sector.”
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ASTA has decried a new bill in the Texas House of Representatives that, if passed, would impose taxes on travel services related to hotel bookings in the state. Photo Credit: Small1/Shutterstock.com ASTA has decried a new bill in the Texas House of Representatives that, if passed, would impose taxes on travel services related to hotel bookings in the state.
The bill would impose a 6% tax on the price paid for a room or space in a hotel. But the bill further specifies that the price includes charges for reserving or booking the room or space. Thus, any fees travel advisors charge their customers for Texas hotel bookings would be subject to state sales and local taxes that they aren t today, Eben Peck, ASTA s executive vice president of advocacy, said in a statement.
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