ASTA Celebrates Defeat of Nebraska Sales Tax Bill

The American Society of Travel Advisors (ASTA) is celebrating another legislative victory, this time in Nebraska, where the state legislature has struck down a bill that would have removed tax exemptions for travel advisor sales and services. 

The proposed law, LB169, levied up to 7.5% in sales tax on travel sold in Nebraska, making travel advisors less competitive in a market where clients could simply take their business across state lines. For example, with the 7.5% sales tax, a family would have to pay an extra $262 on a $3,500 cruise vacation. 

“Travel advisor services are not constrained by geographical boundaries, and they are frequently essential, especially during business travel and unforeseen events,” said Jessica Klement, ASTA’s vice president of advocacy. “Taxing the packages advisors sell and the services they provide would not only amount to an additional fee to their clients but also would ultimately force their clients to seek services outside Nebraska.” 

ASTA members from Nebraska spent the past few weeks calling and emailing their legislators asking them to vote against the bill. The organization says their advocacy was “instrumental in securing this favorable outcome.” This adds yet another victory to ASTA’s belts – it has also helped strike down similar legislation in Louisiana last year. 

“LB169 and legislation like it would have serious financial consequences for both Nebraska travelers and travel advisors,” Klement said. “Nebraska legislators narrowly averted driving all travel booking from their state and harming small Nebraska businesses with this unfair and misguided proposal. I applaud the efforts of the travel advisors in Nebraska to successfully fight against this sales tax, protecting both consumers and their small businesses.”