ASTA Calls Maryland Tax Bill Unnecessary
ASTA released a statement opposing the passage of legislation in Maryland that would apply the state's 6% sales tax to service fees and other markups intermediaries like travel agents charge their clients to book Maryland hotels. From Zane Kerby's statement:
“As with similar bills across the country, this is being described in Annapolis as something that is all about the big online travel agencies (OTAs). However, the word ‘online’ is nowhere to be found in the legislation. Instead, it clearly gives taxing authorities the ability to go after travel agents of all shapes and sizes, online or offline – including the 226 Maryland agencies that employ more than 1,100 people, according to the U.S. Census.
“The fees these agents charge their clients are for a service – saving consumers time and money by helping them navigate a travel marketplace that offers an overwhelming number of options and choices. Our long-held position is that this service fee revenue should not be subject to taxes traditionally applied on hotel room stays."